# GOSI Contribution Rates in Saudi Arabia 2026: Full Breakdown
*The short answer, the full rate table for every category, and worked examples for real salaries in the Saudi market*

> **In short:** GOSI rates for 2026: 21.5% for Saudi employees (9.75% employee + 11.75% employer) and 2% for non-Saudis. Worked examples.

- **URL:** https://www.snad.io/en/blog/nisbat-gosi-2026-saudi-hisab
- **Arabic original:** https://www.snad.io/blog/nisbat-gosi-2026-saudi-hisab
- **Category:** Guides — Human Resources
- **Tags:** GOSI, Social Insurance, Payroll, Human Resources, Salary Calculation, Saudi Employees, Labor Law
- **Published:** 2026-05-22
- **Updated:** 2026-09-15
- **Publisher:** Snad (snad.io)

The social insurance (GOSI) contribution rate in Saudi Arabia for 2026 is 21.5% of the contributory wage for a Saudi employee with contribution periods before 3 July 2024 (9.75% deducted from the employee's salary + 11.75% paid by the employer). For a non-Saudi employee it is 2% for the occupational hazards branch, paid by the employer alone. These official figures from the General Organisation for Social Insurance (gosi.gov.sa) are the basis of every private-sector payroll calculation. Yet many business owners get the details wrong: what counts toward the contributory wage and what does not, the cap, and the real cost difference between a Saudi and a non-Saudi hire. This guide answers all of it with worked examples for real salaries in the Saudi market. It shows the employer what an employee actually costs, and shows the employee the net salary they will really receive.

## The short answer: GOSI rates in 2026

Social insurance (GOSI) contribution rates in Saudi Arabia for 2026:

**For a Saudi employee:**
- Employee share: **9.75%** of the contributory wage (deducted from their salary)
- Employer share: **11.75%** of the contributory wage (paid by the employer)
- **Total: 21.5%** of the contributory wage

**For a non-Saudi employee:**
- Employee share: 0%
- Employer share: **2%** of the contributory wage (occupational hazards branch only)
- **Total: 2%** only

These are the rates for contributors with contribution periods before 3 July 2024, and they continue unchanged. Anyone who starts work from that date with no earlier contribution periods falls under the new law: the pensions branch is 9% on each side in the first year, then rises half a point a year up to 11% (the first increase was on 1 July 2025, so it is 10% on each side from 1 July 2026). The SANED and occupational hazards rates are the same under both laws. Source: GOSI's awareness platform (awareness.gosi.gov.sa), accessed September 2026.

**Breakdown of the 11.75% employer share for Saudis**
- 9% to the pensions (retirement) branch
- 2% to the occupational hazards branch
- 0.75% to the unemployment insurance branch (SANED)

**Breakdown of the 9.75% Saudi employee share**
- 9% to the pensions branch
- 0.75% to the unemployment insurance branch (SANED)

**Important**: a non-Saudi is not covered by the pensions or SANED branches. Only the occupational hazards branch applies, and the employer pays it alone at 2%.

## Full category-by-category rate breakdown

**Category 1: Saudis in the private sector**

This is the main category for most companies. The rates:
- Pensions branch: 18% (9% employee + 9% employer)
- Occupational hazards branch: 2% (paid by the employer alone)
- Unemployment insurance branch (SANED): 1.5% (0.75% employee + 0.75% employer)
- **Total: 21.5%**

**Category 2: Non-Saudi nationals (residents)**

- Occupational hazards branch only: 2% (paid by the employer)
- **Total: 2%**

**Category 3: Public-sector employees**

Slightly different rates apply under the civil retirement scheme, not private-sector GOSI. This guide focuses on the private sector.

**Category 4: Self-employed workers (freelancers)**

Through the optional Himaya programme, a self-employed worker can join the social insurance scheme. Indicative rates vary with the coverage selected.

**Category 5: Saudi women in employment**

Exactly the same rates as Category 1. There is no difference in rates between men and women.

**Quick comparison: Saudi vs non-Saudi**
An SAR 8,000 salary for a Saudi employee:
- Employer cost: 8,000 x 11.75% = SAR 940
- Deducted from the employee: 8,000 x 9.75% = SAR 780

The same salary for a non-Saudi employee:
- Employer cost: 8,000 x 2% = SAR 160
- Deducted from the employee: SAR 0

**Cost difference to the company between hiring a Saudi and a non-Saudi**: 940 - 160 = **SAR 780 per month** = SAR 9,360 per year (on top of Saudization obligations).

## The contributory wage: minimum and maximum

The contributory wage is not necessarily the full salary. It is the base on which contributions are calculated.

**What the contributory wage is made of**
Under the law, the contributory wage includes:
- Basic salary
- Housing allowance (whether paid in cash or valued in kind)
- Commission and sales or profit percentages added to the basic wage

**What the contributory wage excludes**
- Transport allowance
- Other allowances, such as work and nature-of-work allowances
- Overtime pay
- Irregular annual bonuses
- Share dividends
- End-of-service gratuity
- Compensation for accrued leave

**Minimum contributory wage**
For Saudis: SAR 1,500 per month. Even if the actual salary is lower, GOSI is calculated on 1,500.

**Maximum contributory wage**
SAR 45,000 per month. Any salary above that has GOSI calculated on 45,000 only, and the remainder is exempt from contributions.
This lowers the employer's cost on senior salaries, and it caps the employee's eventual pension.

**An example of the cap**
A Saudi employee earning SAR 60,000:
- Contributory wage = 45,000 (the cap), not 60,000
- Employer share = 45,000 x 11.75% = SAR 5,287.5 (instead of 7,050 if calculated on the full salary)
- Employee share = 45,000 x 9.75% = SAR 4,387.5 (instead of 5,850)

**When the contributory wage is adjusted**
On annual increases or promotions, the contributory wage is updated in the system automatically. The employee pays the increase from the month following the promotion decision.

## Worked example: a Saudi salary of SAR 12,000

A Saudi employee on a basic salary of 9,000 + a housing allowance of 2,500 + a transport allowance of 500.

**Calculating the contributory wage**
Contributory wage = basic + housing = 9,000 + 2,500 = **SAR 11,500**
(the transport allowance does not count)

**Employee share**
11,500 x 9.75% = **SAR 1,121.25** (deducted from their salary)

**Employer share**
11,500 x 11.75% = **SAR 1,351.25**

**The employee's monthly net salary**
12,000 (full salary) - 1,121.25 (employee GOSI) = **SAR 10,878.75** (before any other deductions such as medical insurance)

**The real cost to the company**
12,000 (salary) + 1,351.25 (employer GOSI) + ~150 (medical insurance) = **SAR 13,501.25 per month** = SAR 162,015 per year.

**When the pay run is signed off**
The employee receives SAR 10,878.75. The company transfers 1,121.25 + 1,351.25 = SAR 2,472.5 to GOSI every month.

**Total GOSI contributions for this employee over 30 years of service**
Monthly: 2,472.5
Annually: 29,670
Over 30 years at a flat average, with no raises factored in: **SAR 890,100**.

## Worked example: a Saudi salary of SAR 35,000 and the cap

A Saudi employee on a basic salary of 28,500 + a housing allowance of 6,500 + a transport allowance of 1,200.

**Calculating the contributory wage**
Basic + housing = 28,500 + 6,500 = **SAR 35,000**
(the transport allowance does not count)

**Does this pass the cap (45,000)?**
No. 35,000 is below 45,000, so GOSI is calculated on the full amount.

**Employee share**
35,000 x 9.75% = **SAR 3,412.5**

**Employer share**
35,000 x 11.75% = **SAR 4,112.5**

**The employee's net salary**
36,200 (gross salary including the transport allowance) - 3,412.5 = **SAR 32,787.5**

**The real cost to the company**
36,200 + 4,112.5 = **SAR 40,312.5 per month**

**What if the employee's salary later rises to SAR 55,000?**
The contributory wage = 45,000 (the cap), even though the salary is higher.
Employee share = 45,000 x 9.75% = 4,387.5 (fixed once the cap is reached)
Employer share = 45,000 x 11.75% = 5,287.5 (fixed once the cap is reached)

Moving from 35,000 to 55,000 raises the employee share by only SAR 975 a month and the employer share by only SAR 1,175, the difference on SAR 10,000 of contributory wage. That makes hiring at senior salary levels relatively cheaper in GOSI terms.

## Worked example: a non-Saudi salary of SAR 6,000

A non-Saudi (resident) employee on a salary of 5,000 + a housing allowance of 1,000.

**Calculating the contributory wage**
Contributory wage = 5,000 + 1,000 = **SAR 6,000**

**Employee share**
0% (a non-Saudi pays nothing)

**Employer share**
6,000 x 2% = **SAR 120** (occupational hazards branch only)

**The employee's net salary**
The full SAR 6,000, with no GOSI deductions

**The real cost to the company**
6,000 + 120 (GOSI) + ~125 (resident medical insurance) + ~200 (monthly expatriate labour fee) = **SAR 6,445** = SAR 77,340 per year

**Compared with a Saudi employee on the same SAR 6,000 salary**
Real cost: 6,000 + 6,000 x 11.75% = 6,000 + 705 = 6,705 (no labour fee, since it does not apply to Saudis) = SAR 80,460 per year

**The takeaway**: on an identical salary, the cost difference between a Saudi and a non-Saudi is small and does not explain the hiring gap. The real gap sits in base-salary expectations between the two groups.

## Updates and benefits introduced in 2026

The social insurance system keeps evolving. The most notable recent updates:

**1. Optional coverage for Saudis working outside the Kingdom**
A Saudi who starts working abroad can keep contributing voluntarily through a dedicated programme for Saudis overseas, preserving their retirement entitlements.

**2. Improvements to SANED (unemployment insurance)**
Unemployment insurance pays an insured Saudi who loses their job involuntarily 60% of their average contributory wage over the last 6 months, for a maximum of 12 months. Coverage under this programme has widened in recent years.

**3. Deeper integration with Qiwa and Mudad**
GOSI registration is now a natural part of the hiring workflow in Qiwa, and wage protection through Mudad confirms that salaries were actually paid before GOSI-certified documents are issued.

**4. Expanded online services**
Through the GOSI app and the social insurance portal, an employer can register employees, end service, update wages, request certificates, and pull projected-pension reports for each employee.

**5. The contributory wage cap**
It is reviewed periodically. The latest update raised it to SAR 45,000 per month.

**6. The retirement pension**
It is calculated on the average contributory wage over the last two years of service, multiplied by 2.5% x the number of contribution years, capped at 100%. An employee who contributed for 30 years with an average of SAR 8,000 in the final two years: pension = 8,000 x 2.5% x 30 = SAR 6,000 per month.

## Handling GOSI alongside Snad's payroll

Snad does not calculate GOSI contributions; its payroll covers overtime, absence, lateness and unpaid leave from attendance, with its journal entry. For GOSI:

- **Work out the contribution** for any salary with the free GOSI calculator on the Snad site (`/tools/hr/gosi-calculator`).

- **Deduct the employee's share** as a manual line on the payroll run.

- **Record the monthly GOSI bill** as a journal entry, and schedule it as a recurring entry if it repeats unchanged.

The 7-day free trial is enough to run a test payroll and see its journal entry.

## A practical summary for employers

Five rules for handling GOSI correctly:

1. **Deduct the employee's GOSI share when the salary is paid**: do not wait for month-end. Defer it and the employee is hit with a deduction they did not expect.

2. **Build GOSI cost into the hiring plan**: every Saudi employee = salary + 11.75% of the contributory wage (more for anyone under the new law) + medical insurance. Budget hiring on the real cost, not the salary alone.

3. **Update the contributory wage immediately on promotions and raises**: a delay creates a gap in the employee's retirement entitlements and exposes you to penalties.

4. **Register a new employee within the first 15 days of the month after they join**: the same window applies when someone leaves, and late notice carries penalties. Registration is done online through GOSI's services.

5. **Work out contributions with a calculator, not by estimate**: Snad does not calculate GOSI, so work out each employee's share and the employer's share with the free [GOSI calculator](/tools/hr/gosi-calculator), then check the total against the monthly GOSI bill before you pay.

**A common mistake to avoid**: calculating GOSI on gross salary instead of the contributory wage. The difference can cost you hundreds of SAR a month, either over or under what is actually due.

The link between paying GOSI, the employee's entitlements and your own legal position matters. An employee whose GOSI was not paid correctly loses their retirement entitlements, and you as the employer face labour claims and penalties.

## Frequently asked questions

### What exactly is the GOSI rate for a Saudi employee in 2026?

9.75% of the contributory wage is deducted from the employee's salary (9% for pensions + 0.75% for SANED). The employer pays 11.75% (9% pensions + 2% occupational hazards + 0.75% SANED). The total is 21.5% of the contributory wage. These are the rates for contributors with periods before 3 July 2024; for anyone who started after that date with no earlier periods, the pensions branch rises half a point a year up to 11% on each side, and is 10% on each side from 1 July 2026.

### What is the GOSI rate for a non-Saudi employee?

2% only, paid by the employer alone, covering the occupational hazards branch. Nothing is deducted from a non-Saudi employee's salary for GOSI.

### What is the maximum contributory wage?

SAR 45,000 per month. On a salary above that, GOSI is calculated on 45,000 only and the remainder is exempt from contributions. This lowers the employer's cost on high salaries.

### Does the transport allowance count toward the contributory wage?

No. The transport allowance is not part of the contributory wage. What is included: basic salary + housing allowance (in cash or as a calculated in-kind value) + regular fixed allowances tied to the nature of the work.

### When must a new employee be registered with GOSI?

Within the first 15 days of the month after the month they joined, through GOSI's online services. The same window applies to reporting an employee who leaves: within the first 15 days of the month after the month they left. Late notice carries penalties.

### Do working women fall under the same GOSI rates as men?

Yes, exactly. The 9.75% employee rate and the 11.75% employer rate apply to both, with no difference at all. The same goes for retirement entitlements, leave and insurance benefits.

### Can a freelancer contribute to GOSI?

Yes, through the optional Himaya programme for self-employed workers. The rate and the conditions differ from the mandatory private-sector scheme. The details are on gosi.gov.sa.

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