GOSI contributions in Saudi Arabia: a guide for payroll teams
Who pays what for Saudi and non-Saudi employees, how the contributory wage is worked out, the monthly cap, and what changed with the Social Insurance Law of 2024.
Last updated · 3 min read
GOSI contributions for a Saudi employee under the long-standing rules are 9.75% of the contributory wage from the employee and 11.75% from the employer, covering annuities, occupational hazards and SANED. For non-Saudis the employer pays 2% for occupational hazards. The contributory wage is basic plus housing, capped at 45,000 SAR a month.
Key takeaways
- Saudi employees: 9% + 9% annuities, 2% employer hazards, 0.75% + 0.75% SANED.
- Non-Saudis: 2% employer occupational hazards only.
- Contributory wage = basic + housing, capped at 45,000 SAR a month.
- Employees first insured under the 2024 Social Insurance Law pay a rising annuity rate: 10% employer and 10% employee from July 2026, 11% each from July 2028.
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.
The General Organization for Social Insurance (GOSI) collects monthly contributions for every registered employee. Getting them right matters twice: once in payroll, where the employee share is deducted, and again in the employer's cost. This guide summarises the rules as commonly applied. Rates change with new legislation, so confirm current rates on GOSI's official platform before each payroll run.
The three branches
| Branch | Saudi employees | Non-Saudi employees |
|---|---|---|
| Annuities (pensions) | 9% employer + 9% employee | Not covered |
| Occupational hazards | 2% employer | 2% employer |
| SANED (unemployment insurance) | 0.75% employer + 0.75% employee | Not covered |
| Total | 11.75% employer, 9.75% employee | 2% employer |
These are the long-standing rates for Saudi employees registered before the 2024 Social Insurance Law took effect. See the section on the new law below.
The contributory wage
Contributions are calculated on the contributory wage, not on total pay:
- Basic wage, plus
- Housing allowance. If the employer provides housing in kind instead of paying an allowance, GOSI values it by its own rule (commonly cited as two months' basic wage a year).
Transport, food, phone and other allowances, overtime and bonuses are not part of the contributory wage.
The contributory wage is capped at 45,000 SAR a month, and a minimum applies. Above the cap, no contribution is due on the excess.
Worked example
A Saudi employee with a basic wage of 12,000 SAR and housing of 3,000 SAR, under the long-standing rates. Contributory wage: 15,000 SAR.
- Employee share: 9% + 0.75% = 9.75% → 1,462.50 SAR deducted from pay
- Employer share: 9% + 2% + 0.75% = 11.75% → 1,762.50 SAR
A non-Saudi employee on the same wage: employer pays 2% → 300 SAR; nothing is deducted from the employee.
The Social Insurance Law of 2024
A new Social Insurance Law took effect on 3 July 2024. It covers employees who had no contribution periods before that date. For them, the annuity contribution rises in steps from 18% to 22% of the contributory wage, split equally between employer and employee: 19% from July 2025, 20% from July 2026, 21% from July 2027 and 22% from July 2028. In October 2026 a new-law employee therefore pays 10.75% (10% annuities and 0.75% SANED) and the employer 12.75% (10% annuities, 2% occupational hazards and 0.75% SANED). On a 15,000 SAR contributory wage that is 1,612.50 SAR and 1,912.50 SAR. The law also raises the pension age gradually. Because coverage depends on each employee's registration history, read every employee's status from GOSI rather than apply one rate to everyone.
GCC nationals
Employees who are nationals of other Gulf Cooperation Council states are covered under the GCC system for extending insurance protection, and their contributions follow the rules of their home country's scheme. Check the rate for each nationality on GOSI.
Monthly routine
- Register each new employee with GOSI promptly after joining, with the correct contributory wage.
- Update the contributory wage on GOSI whenever basic wage or housing changes.
- Reconcile before paying: compare GOSI's monthly invoice with the contributions in your payroll run. Differences usually come from late registrations, unrecorded salary changes or leavers who were not deregistered.
- Pay on time. The fine for late payment is 2% of the contribution due for each month of delay (Social Insurance Law, Article 9).
- Deregister leavers promptly when their service ends, so they drop off the next invoice.
How RafiqHR helps
RafiqHR calculates the employer and employee shares for every branch in each payroll run, from the contributory wage and the rate that applies to each employee, and shows the calculation on the payslip. The GOSI rates are stored as versioned rule data with their legal source, so a rate change is a reviewed data update, not a code change. The direct link to GOSI runs in a sandbox until production access is granted.
Frequently asked questions
What are the GOSI contribution rates for Saudi employees?
For Saudi employees registered under the long-standing rules, the commonly applied rates are 9% employer and 9% employee for annuities, 2% employer for occupational hazards, and 0.75% employer and 0.75% employee for SANED unemployment insurance. Employees first insured under the 2024 Social Insurance Law pay a higher annuity rate: 10% employer and 10% employee from July 2026, rising to 11% each from July 2028.
Do employers pay GOSI for non-Saudi employees?
Yes. For non-Saudi employees the employer pays the occupational hazards contribution, commonly 2% of the contributory wage. Non-Saudis do not contribute to annuities or SANED.
What wage is GOSI calculated on?
On the contributory wage, which is the basic wage plus the housing allowance. Other allowances such as transport are not included. The contributory wage is capped at 45,000 SAR a month.
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.
