GOSI Contribution Rates in Saudi Arabia 2026: Full Breakdown

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%.

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 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.

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.

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.

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.

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.

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.

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.