POLITICAL SYSTEM
General Information
Saudi Arabia is an absolute monarchy.
The supreme legislative body is the Consultative Council (Majlis ash-Shura).
King – Salman bin Abdulaziz Al Saud.
Crown Prince and Prime Minister – Mohammed bin Salman Al Saud.
The key direction of state policy is the implementation of the "Vision 2030" strategy, aimed at diversifying the economy and reducing dependence on oil exports.
Constitutional System
The Kingdom of Saudi Arabia is a unitary state consisting of 13 administrative regions. The country's constitution is the Quran and the Sunnah of the Prophet. The Basic Law of Governance, adopted in 1992, establishes the monarchical form of government.
The Consultative Council (Majlis ash-Shura) consists of 150 members appointed by the King for a four-year term. The Council has exclusively advisory functions and is engaged in reviewing draft laws and state plans.
Labor Relations
The foundation of labor legislation is the Labor Law of the Kingdom (Labor Code), introduced in 2022. The law regulates the rights and obligations of employees and employers, including issues of employment contracts, working hours, and labor protection. Workers' rights are guaranteed on the basis of the Labor Code (245 articles) and include the right to work, protection from discrimination, the right to dismissal under certain circumstances, as well as a ban on forced labor and illegal deductions from wages.
The Ministry of Human Resources and Social Development implements wage protection – ensures timely payment of wages in the private sector; verification of electronic contracts – guarantees the legitimacy of employment contracts; insurance of workers' rights – protects the interests of workers in case of problems.
The Kingdom does not have a unified minimum wage for all sectors. In 2023, a requirement was introduced for a minimum wage for Saudi Arabian citizens of 4000 Saudi riyals (approximately 1,067 dollars) per month when employed under the "Saudization" program (Nitaqat) in the private sector.
The working week is 40 hours (8 hours per day with a 5-day week) for government institutions and most private companies. For overtime work, employers must pay additional wages equal to the hourly rate with an addition of 50% of the base wage rate.
An employee has the right to annual paid leave – 21 calendar days after a year of continuous work, with an increase to 30 days after five years of work.
Trade Unions
State regulation of labor issues in Saudi Arabia is carried out through the Ministry of Human Resources and Social Development.
In the Kingdom, the creation and activities of independent trade unions and strikes are not legally provided for.