GOSI deduction from salary in Saudi Arabia: how much and how to check

The GOSI line is usually the largest deduction on a Saudi employee's payslip, and the one employees most often ask HR about. This guide explains how much is deducted, from which part of the salary, and how to check the figure. Rates change with legislation, so confirm the current rates on GOSI's official platform.

Who has GOSI deducted

Only Saudi employees (and nationals of other GCC states under their home scheme) have a GOSI share deducted from their pay. For non-Saudi employees, the employer pays 2% for occupational hazards and nothing is deducted; see GOSI for non-Saudis.

The employee's rate

Which rate applies depends on the employee's registration history:

The new Social Insurance Law took effect on 3 July 2024 and covers employees with no contribution periods before that date. Their annuity rate rises in steps to 22% of the contributory wage, split equally between employer and employee. Check each employee's status with GOSI rather than applying one rate to everyone.

The wage it is taken from

The deduction is a percentage of the contributory wage, not of total pay:

• basic wage plus housing allowance;
• capped at 45,000 SAR a month.

Transport and other allowances, overtime and bonuses are not included.

Worked examples

A Saudi employee on the earlier law. Basic 6,000 SAR, housing 1,500 SAR, transport 500 SAR: gross 8,000 SAR.

• Contributory wage: 6,000 + 1,500 = 7,500 SAR
• Deduction: 7,500 × 9.75% = 731.25 SAR
• Pay after GOSI: 8,000 − 731.25 = 7,268.75 SAR

The same pay on the new law, October 2026.

• Deduction: 7,500 × 10.75% = 806.25 SAR
• Pay after GOSI: 8,000 − 806.25 = 7,193.75 SAR

Above the cap. Basic 40,000 SAR, housing 10,000 SAR.

• Contributory wage: 50,000 SAR, capped at 45,000 SAR
• Earlier law: 45,000 × 9.75% = 4,387.50 SAR
• New law from July 2026: 45,000 × 10.75% = 4,837.50 SAR

The employer pays its own share on top: 11.75% under the earlier law and 12.75% under the new law from July 2026, which on 7,500 SAR is 881.25 SAR and 956.25 SAR. That share is never deducted from the employee.

How to read the payslip line

The GOSI deduction may appear as one line ("GOSI" or "Social insurance") or as two lines, annuities and SANED. To check it:

1. Add the basic wage and the housing allowance shown on the payslip.
2. Cap the total at 45,000 SAR.
3. Divide the GOSI deduction by that figure. The result should be 9.75% (earlier law) or the new-law rate for the month, 10.75% from July 2026.
4. If it differs, the usual causes are a wage change not yet updated on GOSI, a contributory wage registered at an old figure, or the wrong regime applied.

An employee can also see their registered wage and contributions in their own GOSI account. Paste the lines of a payslip into the payslip explainer for a line-by-line check, or work out any salary with the GOSI calculator.

How RafiqHR helps

RafiqHR applies each employee's GOSI regime and rate in every payroll run, calculates the employee and employer shares from basic plus housing up to the cap, and shows the calculation on the payslip so the employee can see how the deduction was reached. Rates are kept as versioned rule data with their legal source.