GOSI for non-Saudis: what employers pay for expatriate staff
What GOSI covers for expatriate employees, how the 2% employer contribution is calculated, why nothing is deducted from the salary, and how GCC nationals differ.
Last updated · 3 min read
GOSI for non-Saudis is one contribution: the employer pays 2% of the contributory wage, which is basic plus housing capped at 45,000 SAR a month, for occupational hazards. Nothing is deducted from the expatriate's salary, and there is no annuity or SANED cover. GCC nationals follow their home country's scheme instead.
Key takeaways
- Non-Saudis: 2% of the contributory wage, paid by the employer, for occupational hazards only.
- Nothing is deducted from an expatriate's salary for GOSI.
- Contributory wage = basic + housing, capped at 45,000 SAR a month.
- GCC nationals are covered by their home country's scheme, at its rates.
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.
For a Saudi employee, GOSI involves three branches and a deduction from pay. For an expatriate employee, it is much simpler: one branch, one rate, paid by the employer. This guide explains what that covers and how to calculate it. Confirm current rates on GOSI's official platform before each payroll run.
What GOSI covers for non-Saudis
| Branch | Saudi employees | Non-Saudi employees |
|---|---|---|
| Annuities (pensions) | Employer and employee | Not covered |
| SANED (unemployment insurance) | Employer and employee | Not covered |
| Occupational hazards | 2% employer | 2% employer |
The occupational hazards branch covers work injuries and occupational diseases. The employer must register every non-Saudi employee with GOSI after they join, at the correct contributory wage.
The contributory wage
The 2% is calculated on the contributory wage:
- the basic wage, plus
- the housing allowance; if housing is provided in kind, GOSI values it by its own rule (commonly cited as two months' basic wage a year).
Transport, food and other allowances, overtime and bonuses are not included. The contributory wage is capped at 45,000 SAR a month.
Worked examples
A technician. Basic 4,000 SAR, housing 1,000 SAR, transport 400 SAR.
- Contributory wage: 4,000 + 1,000 = 5,000 SAR (transport excluded)
- Employer: 5,000 × 2% = 100 SAR a month, 1,200 SAR a year
- Deducted from the employee: 0 SAR
A senior manager above the cap. Basic 40,000 SAR, housing 10,000 SAR.
- Basic plus housing: 50,000 SAR, capped at 45,000 SAR
- Employer: 45,000 × 2% = 900 SAR a month
- Deducted from the employee: 0 SAR
For comparison, a Saudi employee on the technician's wage under the earlier law would have 487.50 SAR (9.75%) deducted and cost the employer 587.50 SAR (11.75%). See the GOSI contributions guide.
GCC nationals
Nationals of other Gulf Cooperation Council states working in Saudi Arabia are covered under the GCC system for extending insurance protection. Their contributions follow the rules of their home country's scheme, which can include an employee share, so the 2% rule above does not apply to them. Check the rate for each nationality on GOSI.
Common mistakes
- Deducting 2% from the expatriate's pay. The contribution is the employer's cost.
- Using total pay. Only basic and housing count, up to the cap.
- Not updating the wage. When basic or housing changes, update the contributory wage on GOSI, or the invoice and the Mudad wage file will not match.
- Leaving leavers registered. Deregister them on the last day so they drop off the next invoice. Late payment is fined at 2% of the amount due for each month of delay.
What GOSI does not cover
GOSI pays non-Saudis no pension and no end-of-service benefit. The end-of-service award is paid by the employer under the Labour Law. Medical insurance is a separate obligation outside GOSI.
Work out contributions for any nationality with the GOSI calculator, and the full annual cost of an expatriate hire with the expat cost calculator.
How RafiqHR helps
RafiqHR applies the right GOSI rule to each employee from their nationality and registration status, calculates the employer contribution in every payroll run, shows no deduction on an expatriate's payslip, and produces the GOSI contribution report from the approved run.
Frequently asked questions
How much is GOSI for non-Saudi employees?
The employer pays 2% of the contributory wage for occupational hazards. The contributory wage is the basic wage plus the housing allowance, capped at 45,000 SAR a month, so the most an employer pays for one non-Saudi employee is 900 SAR a month.
Is GOSI deducted from an expatriate's salary?
No. Non-Saudi employees do not contribute to annuities or SANED, and the occupational hazards contribution is paid entirely by the employer. A payslip for an expatriate should show no GOSI deduction.
Do expats get a pension or end-of-service payment from GOSI?
No. The occupational hazards branch covers work injuries and occupational diseases. Expatriates receive their end-of-service award from the employer under the Labour Law, not from GOSI.
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.
