Housing & Transport Allowance Calculator

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:

1. Housing = 10,000 × 25% = SAR 2,500
2. Transport = 10,000 × 10% = SAR 1,000
3. Total allowances = SAR 3,500
4. 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.