Housing allowance
Also known as: بدل السكن · housing benefit
A housing allowance is money the employer pays a worker instead of providing accommodation. The Saudi Labour Law sets no rate; many employers pay a quarter of the basic wage, or three months’ basic a year. It counts with basic in the GOSI contributory wage and in the actual wage the end-of-service award is calculated on.
Housing in kind
If the employer provides accommodation instead of a cash allowance, GOSI values it under Article 17 of its Implementing Regulation (two months’ basic wage a year) so it enters the contributory wage.
What it means for HR
- State it in the contract as its own line, monthly or yearly.
- If it is paid yearly in advance, spread it across months in your books so WPS matching stays clean.
Official sources
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
