Service Companion Private Limited
Government Relations (GR)

HR Outsourcing Services in Saudi Arabia

Most companies under a few hundred staff do not need an HR department. They need HR to happen — correctly, on time, and in a way that survives an inspection. Splitting that across a part-time administrator and whoever is free that week is how small errors become filed liabilities.

In short

HR outsourcing places your administrative HR function — payroll, statutory filings, employee records, onboarding and offboarding — with an external provider that carries the process and compliance risk. SCPL runs it under Saudi labour law, integrated with the government transactions the same employees generate. Your employees stay on your establishment, and SCPL does not act as an Employer of Record.

Reviewed September 2026

Step 2 of 4

Enquiring aboutGovernment relations, HR or payroll

How many employees does your establishment have?

You're probably here because one of these is true

  • Payroll is consuming days each month and still produces errors
  • You cannot confirm your labour-law position if inspected
  • HR knowledge sits with one person and no documentation

If any of these describe your situation, say so in the enquiry — urgent cases are routed differently and we come back the same working day.

What's included

What SCPL handles under HR Outsourcing

SMEs and mid-market companies without a full HR function, and larger firms that want administrative HR off their plate while retaining strategic control.

Payroll processing and WPS filing

Monthly runs, payslip distribution, and the wage file filed on time every month.

GOSI and Saudi Labour Law compliance

Registrations, contribution records and labour-law obligations kept current and reconciled, not reconstructed at inspection.

Employment contracts and employee files

Maintained to the standard an inspection expects, with the supporting documents attached to each file.

Onboarding, offboarding and final settlement

Coordinated with the iqama and visa steps each one triggers, so nothing is left open behind a leaver.

Leave and attendance under Saudi Labour Law

Entitlement accrual, balances and attendance records tracked consistently across the workforce.

End-of-service benefit accrual

Tracked and calculated as it builds, so the liability is known before it is due.

Who we work for

Trusted by operators who cannot afford downtime

Energy, petrochemicals, mining, utilities and construction — organisations where a lapsed permit or an unfilled shift stops work, not just paperwork.

  • Saudi Aramco
  • SABIC
  • Ma'aden
  • Saudi Electricity Company
  • Nesma & Partners
  • Kidana Development Company
  • Elite Hospitality Group
  • Dadabhai Travel
  • Norden

Free tools

Work out where you stand before you call

No sign-up to use them. We only ask for an email if you want the result as a PDF.

Total Cost of Employment Calculator

What an employee actually costs you, beyond the salary line.

Compliance Health Check

Six questions. A risk score, and the specific exposures named.

Where we deliver this

City pages, each covering what actually differs about delivering this there.

Common questions

What does HR outsourcing typically include in Saudi Arabia?

The administrative and compliance layer: payroll and WPS filing, GOSI administration, employment contracts and records, leave and attendance, onboarding and offboarding, and end-of-service calculation. Strategy, culture and performance decisions stay with you.

Is HR outsourcing the same as an Employer of Record?

No. Under HR outsourcing you remain the legal employer and we administer the function on your behalf. An Employer of Record becomes the legal employer of the staff. The distinction matters legally and commercially, and the right answer depends on whether you hold a Saudi entity.

Can you work alongside our existing HR person?

That is a common arrangement. We typically take the transactional and compliance load so an in-house HR lead can concentrate on hiring, performance and the things that need someone inside the business.

How is HR outsourcing priced?

Usually per employee per month, scaled to headcount and the modules you need. What matters more than the rate is what happens when something goes wrong — ask any provider, including us, who carries the cost of a filing error.

Is HR outsourcing legal in Saudi Arabia?

Yes. Administering the HR function for a company that remains the legal employer of its own staff is ordinary professional services work. What is separately regulated is internal labour outsourcing (تعهيد القوى العاملة) — operating a worker at an establishment other than the one they belong to — which requires an MHRSD licence under Ministerial Resolution 60339 and is documented through Ajeer. SCPL's HR outsourcing administers HR for companies that employ their own people.

Is HR outsourcing the same as manpower supply or staffing?

No. The MHRSD rules behind Ajeer draw the line by what is delivered: internal labour outsourcing is operating a non-Saudi worker at an establishment other than the one they belong to under a contract between the two establishments, while internal service outsourcing is a contract to deliver a service with a scope of work fixed in advance. The first places people; the second delivers an output. HR outsourcing is neither a supply of workers nor a transfer of your staff — your employees stay on your establishment, on your GOSI registration and in your Nitaqat count.

Does outsourcing HR affect our Nitaqat band?

No. Your band is your own establishment's Saudization rate measured against the quota set for your activity and size band, and outsourcing the administration of HR moves no employee off your establishment. What moves the band is headcount composition. Since the 2026 cycle there are five bands — Platinum, High Green, Mid Green, Low Green and Red — after the Yellow band was removed and the establishments in it were reclassified Red, so there is no longer an intermediate step between meeting the quota and facing restrictions.

Who files the WPS wage file — us or you?

The file itself is generated and electronically signed by your bank after the salary transfer clears, and it is uploaded to Mudad by the establishment's own wage protection representative, because Mudad requires that delegate to be an employee of the establishment. SCPL's part is everything either side of that: reconciling payroll against the GOSI registered wage before the file goes up, and clearing violations and justifications after it does.

What is not included in HR outsourcing?

Two things. We do not become the legal employer — that is an Employer of Record arrangement and a different model. And strategy, culture, performance and pay decisions stay with you; what transfers is the administrative and compliance layer that has to be right every month.

Talk to someone who does hr outsourcing every day

Tell us the situation and we'll tell you what it actually takes to fix it — including when the answer is that you don't need us.