Saudi labor authorities provide clarity on allowances payment, emphasizing its dependence on the terms outlined in the employment contract.

According to the Saudi Ministry of Human Resources, allowances and pay are determined through mutual agreement between the employer and employee, as per the terms specified in the work contract or the establishment's bylaws.

This clarification comes in response to inquiries from workers who have not received allowance or salary increases despite long tenures with their employers.

In recent years, Saudi Arabia has taken steps to regulate its job market, enhance competitiveness, and attract talent, particularly from its large expatriate community.

Last November, labor authorities announced that private sector workers could hold two jobs simultaneously, provided their contracts and the establishment's bylaws permit it.

Additionally, the Ministry of Human Resources introduced an authentication plan via the Qiwa platform, mandating private sector institutions to document a percentage of employee contracts progressively over several quarters. This initiative aims to safeguard the rights of contractual parties and foster a stable labor environment conducive to productivity.

Major labor reforms introduced in 2020 improved Saudi Arabia's sponsorship system, enabling job mobility and regulating exit and re-entry visas for expatriate workers without employer approval. These reforms facilitate employee mobility, allowing expatriates to switch employers upon contract expiration without consent, and streamline exit and re-entry visa issuance, granting workers the freedom to travel without employer constraints.