Article 95 of the Saudi Labor Law
المادة 95 من نظام العمل · الباب السادس: شروط العمل وظروفه
Article 95 sets how to determine a worker's wage and the type and scope of work when the contract or work organization regulations do not state them, through a stepped order ending with the Labor Disputes Settlement Authority.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا لم ينص عقد العمل أو لائحة تنظيم العمل على الأجر الذي يلتزم به صاحب العمل يؤخذ بالأجر المقدر لعمل من النوع ذاته في المنشأة إن وجد، وإلا قدر الأجر طبقًا لعرف المهنة في الجهة التي يؤدى فيها العمل، فإن لم يوجد تولت هيئة تسوية الخلافات العمالية تقدير الأجر وفقًا لمقتضيات العدالة.
2 - ويتبع ذلك أيضًا في تحديد نوع الخدمة الواجب على العامل أداؤها، وفي تحديد مداها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 95 explained in plain English
Article 95 deals with a practical situation that can arise in any establishment: what if neither the employment contract nor the work organization regulations state the wage the employer is bound to pay? The absence of a provision does not mean the worker loses the right to a wage; instead, the law sets a clear order for determining it.
The order for determining the wage under paragraph 1, which is followed in sequence and not by choice:
- The wage set for work of the same type within the same establishment, if there is someone doing similar work.
- If there is none, the wage is determined according to the custom of the profession in the place where the work is performed.
- If there is no custom, the Labor Disputes Settlement Authority determines the wage according to the requirements of fairness.
Extension of the rule to the type and scope of work: paragraph 2 provides that the same order applies if the contract or the regulations do not specify the type of service the worker must perform, or its scope (its limits and extent); reference is made first to what is set for similar work in the establishment, then to the custom of the profession, then to the Authority's assessment.
How does it connect with neighboring articles? Article 94 protects the wage that is due from unlawful deduction or delay in payment, and Article 96 explains how the average wage is calculated when it is set by the piece or by commission; Article 95 fills the gap that comes before all of that, that is, when no wage is stated at all.
What can the worker do? If a dispute arises over the amount of the wage in the absence of a provision, the worker can rely on this order, and where assessment is not possible by the first two methods, the route is the Labor Disputes Settlement Authority. Because proving custom or a similar wage varies from case to case, it is advisable to consult a labor lawyer.
Practical example
Ahmed started work as a welder at a workshop in Jeddah based on an oral agreement. A contract was then signed that stated the job title without mentioning the wage, and the workshop's regulations contain no wage schedule. At the first dispute over the amount of the salary, Article 95 applies: first, the wage of other welders in the same workshop is looked at, if there are any; if Ahmed is the only welder, reference is made to the customary wage for the welding profession in Jeddah; if no clear custom can be established, the Labor Disputes Settlement Authority determines his wage as fairness requires.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 95 of the Saudi Labor Law
What happens if the employment contract does not state the wage?
The worker's right to a wage does not lapse; under Article 95 it is determined by the wage set for similar work in the establishment, failing which by the custom of the profession in the place of work, failing which by the assessment of the Labor Disputes Settlement Authority.
Who determines the wage if there is no similar work and no custom for the profession?
The Labor Disputes Settlement Authority determines the wage according to the requirements of fairness, which is the last step in the order set by the article.
Does Article 95 also apply to determining the type of work?
Yes. Paragraph 2 provides for following the same order in determining the type of service the worker must perform and its scope if the contract or the regulations do not specify them.
Can an employer refuse to pay a wage on the grounds that it was not agreed?
No. Article 95 sets a mechanism for determining the wage even in the absence of agreement, and once determined it is subject to the protection in Article 94 against unlawful deduction or delay in payment.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.