What is Housing & Transportation allowance in KSA?

As per Saudi Labor and the general practice in Saudi Arabia, the housing and transportation allowance is included in the Job offer.

Housing Allowance in Saudi Arabia

The employer is required by the Saudi Labor Law to provide either the housing allowance or accommodation to its employees.

Housing Allowance Calculation

Let me tell you one thing, average market rate of housing allowance in Saudi Arabia is around 25% of basic salaryIn any case, you should not accept a housing allowance less than 20% of your basic salary.

Housing Allowance in Saudi Arabia

Accommodation v/s Housing Allowance

If there is an option between choosing the housing allowance or the accommodation, my recommendation is to go for the housing allowance. 

Rent in Saudi Arabia

The rent in Saudi Arabia is quite cheap and therefore, you can easily rent an apartment in the housing allowance provided to you.

Employer Accommodation

If the employer is providing you accommodation instead of housing allowance, check if the housing provided is comfortable. You can ask several questions to determine if housing provided is reasonable.

  • How many rooms are there in the house provided to you?
  • How far the accommodation is from the working area?
  • If you are not given the independent house, is the room given to you independent?
  • How many people will be sharing the room if it is not independent?

Transportation Allowance in Saudi Arabia

Just like the housing allowance, an employer in Saudi Arabia is required to provide either the transport or transport allowance to its employees.

Tranport Allowance Calculation

Let me tell you one thing, average market rate of transportaion allowance in Saudi Arabia is around 10% of basic salaryIn any case, you should not accept a housing allowance less than 8% of your basic salary.

Transportation Allowance in Saudi Arabia

Company Transport v/s Transport Allowance

If there is an option between choosing the transport allowance or the company transport, my recommendation is to go for the transport allowance.

Let’s say if your transport allowance is SR 800/month, you can easily lease a car from a bank in this range. If you start driving company car, you would lose this benefit.

Average Salary by Profession

As you can see the housing and transportation allowance both are dependent upon the basic salary. What should be your basic salary?

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.