# 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: 21.6% for Saudi employees (9.75% employee + 11.85% employer) and 2% for non-Saudis. Worked examples, the contributory wage cap and FAQs. - **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:** 2026-08-02 - **Publisher:** Snad (snad.io) The social insurance (GOSI) contribution rate in Saudi Arabia for 2026 is 21.6% of the contributory wage for a Saudi employee (9.75% deducted from the employee's salary + 11.85% 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: **11.85%** of the contributory wage (paid by the employer) - **Total: 21.6%** 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 rates are uniform across every private-sector establishment in the Kingdom, effective from the updated amendments to the Social Insurance Law. Official source: the General Organisation for Social Insurance, gosi.gov.sa. **Breakdown of the 11.85% employer share for Saudis** - 9% to the pensions (retirement) branch - 2% to the occupational hazards branch - 0.85% 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 and GCC nationals 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): 1.6% (0.75% employee + 0.85% employer) - **Total: 21.6%** **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 11.85% = SAR 948 - 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**: 948 - 160 = **SAR 788 per month** = SAR 9,456 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) - Regular fixed allowances (work allowance, nature-of-work allowance) **What the contributory wage excludes** - Transport allowance - 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 11.85% = SAR 5,332 (instead of 7,110 if calculated on the full salary) - Employee share = 45,000 x 9.75% = SAR 4,387 (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 11.85% = **SAR 1,362.75** **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) + 1,362.75 (employer GOSI) + ~150 (medical insurance) = **SAR 13,512.75 per month** = SAR 162,153 per year. **When the pay run is signed off** The employee receives SAR 10,878.75. The company transfers 1,121.25 + 1,362.75 = SAR 2,484 to GOSI every month. **Total GOSI contributions for this employee over 30 years of service** Monthly: 2,484 Annually: 29,808 Over 30 years at a flat average, with no raises factored in: **SAR 894,240** - and that figure determines the pension they will be entitled to. ## Worked example: a Saudi salary of SAR 35,000 and the cap A Saudi employee on a basic salary of 28,000 + a housing allowance of 6,500 + a regular field-work allowance of 500 + a transport allowance of 1,200. **Calculating the contributory wage** Basic + housing + work allowance = 28,000 + 6,500 + 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 11.85% = **SAR 4,147.5** **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 + 4,147.5 = **SAR 40,347.5 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 11.85% = 5,332.5 (fixed once the cap is reached) Moving from 35,000 to 55,000 raises the contribution by only SAR 975 per month, the difference on SAR 10,000. 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 11.85% = 6,000 + 711 = 6,711 (no labour fee, since it does not apply to Saudis) = SAR 80,532 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. ## How Snad calculates GOSI automatically Snad calculates GOSI for every employee automatically inside the HR and payroll module: - **Employee classification**: Saudi / GCC national / resident, with the correct rate applied automatically (21.6% or 2%). - **Setting the contributory wage**: identifying which pay components are subject to contributions (basic + housing + fixed allowances) and which are not (transport + irregular bonuses), based on each item's configuration. - **Applying the cap**: when a salary passes 45,000, the contributory wage is capped automatically instead of being calculated on the full amount. - **Automatic journal entries**: when the payroll run is issued, the entries are posted: Debit: payroll expense (gross salary) Credit: salary payable to the employee (net salary) Credit: GOSI payable, employee share (the amount deducted) Credit: GOSI payable, employer share (the additional share) Debit: employer GOSI expense - **Generating the GOSI upload file**: an Excel or XML file that can be uploaded straight to the monthly social insurance portal. - **Variance alerts**: for example, a salary change that was never registered with GOSI, or an employee whose service ended without their contribution being closed. - **A free GOSI calculator on the Snad site**: a tool at `/tools/hr/gosi-calculator` that works out contributions for any salary instantly. The 30-day free trial is enough to run three full payroll cycles with GOSI calculated correctly, work out total employee cost, and compare it against budget. ## 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 + 11.85% + 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 new employees within 5 days of their start date**: late registration carries a financial penalty. Registration is done online through Qiwa and the social insurance portal. 5. **Use an accounting system that calculates GOSI automatically**: manual calculation eats hours every month and leaves room for error. A sound accounting system saves the time and prevents mistakes that can cost you thousands of SAR a year. **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 11.85% (9% pensions + 2% occupational hazards + 0.85% SANED). The total is 21.6% of the contributory wage. ### 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 5 working days of the start date. Registration is done online through the social insurance portal or through Qiwa. Late registration carries a financial penalty. The same window applies to closing the contribution of an employee whose service ends. ### Do working women fall under the same GOSI rates as men? Yes, exactly. The 9.75% employee rate and the 11.85% 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. --- ## About the publisher **Snad (سند)** — a private Saudi software company based in Riyadh, founded 2025. Legal form: Sole proprietorship. Commercial registration: 7038154642 VAT number: 310959226500003 Only official domain: snad.io > Snad is a private commercial business-management platform. It is not a > government body, not a bank, and not a government services portal, and it > is not affiliated with any government entity. Any site or app with a > similar name is unrelated to Snad.