Human Resources
Housing & Transport Allowance Calculator
Compute housing and transport allowance by % or fixed amount
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Calculation mode
Housing allowance
25% Housing % of basic
Transport allowance
10% Transport % of basic
Total allowances
Total package
How does it work?
Housing and transport are the two most common allowances in Saudi employment contracts. They're usually expressed as a percentage of basic salary (25% housing and 10% transport are the market norms) or as fixed monthly amounts. The difference between the two impacts the GOSI base and end-of-service gratuity directly.
Market norms
- Housing: 25% of basic (typical for Saudis), 30% (some non-Saudis).
- Transport: 10% of basic (the standard).
- Some companies pay a fixed amount, e.g. SAR 2,000 housing + SAR 500 transport.
Impact on GOSI
Housing enters the GOSI contribution base (raising contributions); transport does not. Restructuring an offer to grow transport at the expense of housing can raise net pay without raising GOSI cost.
Worked example
Employee with SAR 10,000 basic, 25% housing and 10% transport:
- Housing = 10,000 × 25% = SAR 2,500
- Transport = 10,000 × 10% = SAR 1,000
- Total allowances = SAR 3,500
- Total package = 10,000 + 3,500 = SAR 13,500
Tips
- Always ask for each allowance value to be specified in your offer letter.
- Fixed allowances feed into end-of-service gratuity; variable ones don't.
- If commissions form part of your pay, pin a target average in the contract for later EOS computation.
Frequently Asked Questions
What's the typical housing allowance?
25% of basic is the standard market rate for Saudis; it can rise to 30% for non-Saudis or sectors that provide in-kind housing.
Does transport allowance enter GOSI?
No. Transport is excluded from the GOSI contribution base. Only basic and housing enter the base.
Do allowances feed into end-of-service gratuity?
Yes — fixed allowances (housing, transport, nature of work) are part of the 'monthly wage' used for EOS calculations.
Can I trade housing for transport?
Yes. Trading down housing for transport preserves total pay but reduces GOSI cost and raises net salary.
Can I get in-kind housing instead of cash?
Yes — by agreement with the employer. Suitable in-kind housing typically waives the cash allowance unless the contract says otherwise.
Fixed amount vs percentage — which is better?
A percentage rises automatically with your basic. A fixed amount stays flat, so its effective percentage falls every time the basic is raised.
From the same drawer
Everything in Human Resources- Net Salary CalculatorCalculate your net salary after GOSI social-insurance deductions
- End of Service Gratuity CalculatorCalculate gratuity under Article 84 of the Saudi Labor Law
- GOSI CalculatorDetailed GOSI breakdown for Saudis and non-Saudis
- Overtime Pay CalculatorCalculate overtime pay at 1.5× per Article 107
- Annual Leave Balance CalculatorCalculate annual leave balance under Article 109
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