What percentage is deducted for GOSI in Saudi Arabia?

For Saudi national employees under the standard scheme, 9.75% is deducted from their salary (9% for the Annuities/Pension branch and 0.75% for SANED unemployment insurance). The employer contributes an additional 11.75% (9% Annuities + 0.75% SANED + 2% Occupational Hazards), bringing total combined GOSI contributions to 21.5%.

Which salary components are subject to GOSI deductions?

Under GOSI regulations, the contributory wage (الأجر الخاضع للاشتراك) consists strictly of the Basic Salary plus the Housing Allowance (or in-kind housing value). Transportation allowances, mobile allowances, overtime, and irregular bonuses are exempt from GOSI deductions.

What is the maximum salary cap for GOSI contributions in Saudi Arabia?

The maximum contributory wage cap for GOSI is SAR 45,000 per month. Any monthly basic salary plus housing allowance exceeding SAR 45,000 is not subject to further GOSI percentage deductions.

Do non-Saudi expatriates pay GOSI deductions from their salary?

No. Non-Saudi expat employees have 0% deducted from their salary for GOSI. However, their employer must pay a 2% contribution on their basic salary plus housing allowance for the Occupational Hazards branch (الأخطار المهنية).

What is SANED (ساند) and how much does it cost?

SANED is the Saudi unemployment insurance scheme that provides financial compensation to Saudi nationals who lose their jobs involuntarily. It costs 1.5% total of the contributory wage, split equally: 0.75% paid by the employee and 0.75% paid by the employer.

How does the 2024 New Social Insurance Law affect GOSI deductions?

The new Social Insurance Law (effective July 2024) applies to new labor market entrants. It gradually increases the pension contribution rate by 0.5% each year starting from the second year for 4 years, until reaching 11% employee and 11% employer. Existing contributors with prior registered contributions remain on the standard 9% + 9% pension rate.

What is the minimum wage for GOSI registration in Saudi Arabia?

The statutory minimum contributory wage for GOSI registration is SAR 1,500 per month for Saudi citizens. However, to count as 1 full Saudi employee under the Ministry of Human Resources Nitaqat (Saudization) quota, the minimum wage is SAR 4,000 per month.

Are GCC nationals covered under Saudi GOSI?

Yes. Under the Unified System for Extending Insurance Protection, GCC citizens working in Saudi Arabia contribute to their home country pension system (e.g., GPSSA in UAE, PIFSS in Kuwait, SIO in Bahrain, PASI in Oman, GRSIA in Qatar), while the Saudi employer pays the Occupational Hazards (2%) plus the employer pension rate.

Saudi GOSI & Net Salary Calculator 2026

Calculate your exact GOSI deductions (9.75% / 21.5%), employer contributions, and net monthly take-home salary in Saudi Arabia.

Quick Scenarios:

Employee Nationality & Category * Determines GOSI rates

Social Insurance Scheme * 2024 Law Update

Monthly Salary Breakdown (SAR)

GOSI Contributory Wage = Basic Salary + Housing Allowance (Capped at SAR 45,000).

Contributory Wage: SAR 12,500

Basic Salary (الراتب الأساسي) * (Subject to GOSI)

SAR

Housing Allowance (بدل السكن) (Subject to GOSI)

SAR

Transport Allowance (بدل النقل) (GOSI Exempt)

SAR

Other Allowances (Food/Mobile) (GOSI Exempt)

SAR

Other Monthly Deductions (Loan / Advances / Insurance Top-up)

SAR

Total Gross Salary (إجمالي الراتب): SAR 13,500

Net Monthly Take-Home Pay

Your Net Deposited Bank Salary (صافي الراتب المستحق)

SAR 0 (≈ SAR 0 / year)

9.75% GOSI Deduction

Total Monthly Deducted: SAR 0

Employee GOSI Deduction SAR 0 9.75% of Subject Wage

Employer GOSI Contribution SAR 0 11.75% Paid by Company

GOSI Contributory Wage SAR 0 Basic + Housing (≤ 45k)

Total Cost to Company (CTC) SAR 0 Gross Salary + Employer GOSI

Statutory GOSI Contribution Breakdown (21.5% Scheme)

Insurance Branch (فرع التأمين)	Employee Share (حصة المشترك)	Employer Share (حصة صاحب العمل)	Total Combined (الإجمالي)
Annuities / Pension (معاشات التقاعد)	9.0% (SAR 0)	9.0% (SAR 0)	18.0% (SAR 0)
SANED Unemployment (ساند - ضد التعطل)	0.75% (SAR 0)	0.75% (SAR 0)	1.5% (SAR 0)
Occupational Hazards (الأخطار المهنية)	0.0% (SAR 0)	2.0% (SAR 0)	2.0% (SAR 0)
Total GOSI Contribution	9.75% (SAR 0)	11.75% (SAR 0)	21.5% (SAR 0)

Share this Saudi GOSI calculator:

Complete Guide to Saudi GOSI Deductions & Social Insurance (2026)

In the Kingdom of Saudi Arabia, the General Organization for Social Insurance (GOSI / المؤسسة العامة للتأمينات الاجتماعية) oversees statutory pension, disability, occupational hazard, and unemployment insurance protections for all private and public sector employees.

Whether you are an HR manager processing monthly payroll, a Saudi citizen evaluating a job offer, or an expatriate worker checking your payslip deductions, understanding the exact GOSI formula ensures accurate compensation management and full compliance with Saudi Labor and Social Insurance regulations.

18%

Annuities (Pension)

Provides retirement pensions, disability annuities, and death benefits. Paid at 9% by the Saudi employee and 9% by the employer on contributory wage.

1.5%

SANED (ساند)

Unemployment protection scheme providing up to 12 months of temporary compensation for involuntary job loss. Paid at 0.75% by employee and 0.75% by employer.

2.0%

Occupational Hazards

Covers workplace injuries, rehabilitation, and medical care. Paid 100% by the employer (2%) for all workers (both Saudi and non-Saudi expat staff).

Which Salary Allowances Are Subject to GOSI Deductions?

A critical distinction in Saudi payroll is between the Contributory Wage (الأجر الخاضع للاشتراك) and the Gross Salary:

Included in GOSI Base:

Basic Monthly Salary (الراتب الأساسي)
Housing Allowance (بدل السكن النقدي أو العيني)
Commission / Recurring Sales percentage (if agreed as contractual core wage)

Excluded from GOSI Base:

Transportation Allowance (بدل النقل)
Overtime Payments & Bonuses (ساعات العمل الإضافية)
Mobile, Fuel & Travel allowances
Schooling & Relocation allowances

The SAR 45,000 Contributory Wage Cap

Under GOSI statutory limits, the maximum wage subject to deductions is capped at SAR 45,000 per month. If an employee earns a Basic Salary of SAR 40,000 plus a Housing Allowance of SAR 15,000 (total SAR 55,000), GOSI calculates deductions only on SAR 45,000:

Max Employee Deduction = SAR 45,000 × 9.75% = SAR 4,387.50 / month
Max Employer Contribution = SAR 45,000 × 11.75% = SAR 5,287.50 / month

The remaining SAR 10,000 of salary is exempt from GOSI deductions, increasing the employee's effective take-home ratio.

Saudi Workforce & Compliance

Navigating GOSI & Saudi Payroll? Prove Your Arabic Skills

Understanding terms like الأجر الخاضع للاشتراك (Contributory Wage), الأخطار المهنية (Occupational Hazards), ساند (SANED), and navigating GOSI Portal (تأميناتي أفراد / أعمال) is crucial for corporate compliance, HR managers, and ambitious professionals in Saudi Arabia.

Test your Modern Standard Arabic (MSA) reading comprehension and business vocabulary with our free, timed 40-question Arabic proficiency quiz.

Start Free Arabic Level Test

Related Saudi & Gulf Compliance Tools

Saudi End of Service Calculator Saudi 15% VAT Calculator UAE Gratuity Calculator Arabic Level Test & Quiz ATS Resume Checker

Frequently Asked Questions (FAQ)

For a Saudi citizen under the standard system, exactly 9.75% is deducted from the contributory wage (Basic Salary + Housing Allowance). This consists of 9.0% for retirement pensions (Annuities) and 0.75% for SANED unemployment insurance.

For Saudi employees, the employer pays an additional 11.75% of the contributory wage (9.0% Pension + 0.75% SANED + 2.0% Occupational Hazards). For non-Saudi expatriates, the employer pays only 2.0% for Occupational Hazards.

No. Expatriate employees have 0% deducted from their salary for GOSI. Expatriates receive end-of-service gratuity upon departure rather than a monthly GOSI pension. Their employer must still pay a 2% contribution to GOSI to cover occupational injury and emergency medical care.

No. Transportation allowance (بدل النقل) is exempt from GOSI deductions. Only the Basic Salary and Housing Allowance are subject to GOSI contributions.

GOSI imposes a statutory cap of SAR 45,000 per month on the contributory wage. If your Basic + Housing is SAR 60,000, your GOSI deduction is capped at SAR 45,000 × 9.75% = SAR 4,387.50. No deductions are taken on the remaining SAR 15,000.

For new workers joining the Saudi workforce after July 3, 2024, the pension contribution rate will increase gradually by 0.5% per year starting from Year 2 until reaching 11% employee + 11% employer. Existing contributors maintain their current 9% + 9% rate.

To count as one (1.0) full Saudi employee under the Ministry of Human Resources Nitaqat quota, the employee's registered monthly wage must be at least SAR 4,000. A wage between SAR 3,000 and SAR 4,000 counts as half (0.5) an employee, while a wage below SAR 3,000 is not counted in Saudization.

Employers are required to pay monthly GOSI contributions within the first 15 days of the following Gregorian calendar month. Late payments incur a statutory penalty of 2% per month of delay under GOSI regulations.

Was this tool helpful?

Comments

Loading comments...

Check Out Other Popular Tools

Unix Timestamp Converter

Convert Unix timestamps to human-readable dates and vice versa. Free epoch converter with timezone support for developers.

Developer Tools533

Friendly URL Checker

Check if any URL follows SEO-friendly best practices. Analyze readability, hyphens, length, special characters, and more.

SEO Tools112

Net Run Rate Calculator

Calculate Net Run Rate (NRR) for cricket tournaments. Track scenario-based NRR for T20 World Cup, IPL, and more with our live table.

Sports Tools768