Saudi GOSI Rates 2026: Employer and Employee Contributions

GOSI, the General Organization for Social Insurance, collects social-insurance contributions for private-sector employees in Saudi Arabia. For Saudi nationals it funds pensions (annuities), unemployment insurance (SANED) and occupational-hazard cover. For non-Saudis, only the employer pays, and only for occupational hazards. Since the 2024 Social Insurance Law, Saudis are on one of two rate tables depending on when they were first registered, and the new-system rate rises every July until 2028. This guide sets out the current rates, who pays what, how the contribution base works, and worked examples for employees and employers.

Rules last reviewed: 23 September 2026, against GOSI contribution rates (Mercans; gosi.gov.sa FAQ).

GOSI rates for October 2026 at a glance

All rates apply to the contribution base: basic salary plus housing allowance, with a minimum of SAR 1,500 and a maximum of SAR 45,000 a month.

What each percentage is made of

• Annuity (pension): paid equally by employee and employer. 9% each on the old system; on the new system 10% each from 3 July 2026.
• SANED (unemployment insurance): 0.75% each for Saudis.
• Occupational hazards: 2%, paid by the employer only, for Saudis and expats alike.

So an old-system Saudi pays 9% + 0.75% = 9.75%, and the employer pays 9% + 0.75% + 2% = 11.75%.

Old system or new system: which one are you on?

The 2024 Social Insurance Law created a new rate track for Saudis first registered with GOSI on or after 3 July 2024. Anyone registered before that date stays on the old rates. The test is the date you were first registered with GOSI, not the date you joined your current employer, so a Saudi who changes jobs keeps their original track.

The new-system schedule to 2028

New-system annuity starts at 9% per side and rises by 0.5 percentage points every 3 July from 2025 until it reaches 11% in 2028:

The old-system rates do not change on this schedule.

How to calculate GOSI, step by step

1. Work out the base: basic salary + housing allowance. Transport and other allowances are not added.
2. Apply the floor and cap: a base below SAR 1,500 is raised to SAR 1,500; a base above SAR 45,000 is capped at SAR 45,000.
3. Pick the rate table: old system, new system for the current date, or expat.
4. Multiply: base × employee rate = your monthly deduction; base × employer rate = the employer's monthly cost.

Worked example 1: new-system Saudi on SAR 12,500

Basic SAR 10,000 + housing SAR 2,500 = base SAR 12,500. On 1 October 2026 the new-system rates are 10.75% and 12.75%.

Worked example 2: the same salary on the old system

Same SAR 12,500 base, first registered before July 2024: employee SAR 1,218.75 (9.75%) and employer SAR 1,468.75 (11.75%). The new-system employee pays SAR 125 a month more in October 2026, and the gap widens each July until 2028.

Worked example 3: an expat on the same package

For a non-Saudi on SAR 10,000 basic and SAR 2,500 housing, nothing is deducted from salary. The employer pays 2% of the base for occupational hazards: SAR 250 a month.

Worked example 4: a high earner above the cap

Basic SAR 40,000 + housing SAR 15,000 = SAR 55,000, but the base is capped at SAR 45,000. A new-system Saudi pays SAR 4,837.50 and the employer SAR 5,737.50. Any pay above the cap carries no GOSI.

Worked example 5: a low base raised to the minimum

Basic SAR 1,000 with no housing allowance is raised to the SAR 1,500 minimum. On the old system that is SAR 146.25 from the employee and SAR 176.25 from the employer.

Worked example 6: how the new-system deduction grows

A new-system Saudi on SAR 8,000 basic and SAR 2,000 housing (base SAR 10,000):

If the same employee also receives a transport allowance, the figures do not change: the base is basic plus housing only, so it stays at SAR 10,000.

What the step-ups mean over a year

The half-point increases look small, but they add up across a year of payslips. For a new-system Saudi on a SAR 12,500 base, the employee's GOSI over twelve months is SAR 16,125 at the rates in force from 3 July 2026, SAR 16,875 at the rates from 3 July 2027, and SAR 17,625 once the schedule finishes in July 2028. That is SAR 1,500 a year more by 2028 on the same salary, before any pay rise. The employer's share rises by the same amount, because both sides step up together. For an employer with ten new-system Saudi staff on that base, the extra employer cost by 2028 is SAR 15,000 a year, on top of the employee-side increase their payslips will show.

If you are a new-system employee planning a budget, or an employer planning headcount costs, build these July changes into the forecast rather than treating today's rate as permanent.

GOSI by salary: quick reference for October 2026

Monthly contributions for common contribution bases (basic plus housing), using the rates in force on 1 October 2026:

Bases above SAR 45,000 pay the same as the last row.

From gross to net: what GOSI does to a payslip

A new-system Saudi employee on SAR 10,000 basic, SAR 2,500 housing and SAR 1,000 transport has a gross salary of SAR 13,500. GOSI is charged on the SAR 12,500 base only, so the deduction is SAR 1,343.75 and take-home pay before any other deductions is SAR 12,156.25. The employer's monthly cost for the same person is the gross plus its own SAR 1,593.75: SAR 15,093.75.

An expat on exactly the same package takes home the full SAR 13,500, and the employer's cost is SAR 13,750. That difference in employer cost, SAR 1,343.75 a month here, is one reason total cost-to-hire comparisons between Saudi and non-Saudi candidates should always include GOSI.

A worked team example for employers

A small company has eight staff, each on a SAR 10,000 base: two Saudis registered before July 2024, one Saudi hired in 2025 and registered then for the first time, and five expats. Its monthly employer GOSI in October 2026:

From 3 July 2027 the new-system line rises to SAR 1,325, and from 3 July 2028 to SAR 1,375, while the other lines stay the same. Payroll that is not updated on those dates under-deducts from the employee and under-pays the employer share.

Common GOSI mistakes

• Adding transport or other allowances to the base. Only basic and housing count.
• Using the old rate for a new Saudi joiner. If the employee was first registered on or after 3 July 2024, the new-system rate applies.
• Moving an experienced Saudi to the new rate just because they changed employer. The track follows the first registration date.
• Missing the 3 July update for new-system employees in 2027 and 2028.
• Deducting GOSI from expat salaries. For non-Saudis the 2% is paid by the employer.
• Ignoring the cap and floor. The base never goes above SAR 45,000 or below SAR 1,500.

GOSI, gratuity and overtime use three different wage bases

Saudi payroll uses a different slice of pay for each calculation, which is the most common source of confusion. Take a new-system Saudi on SAR 7,000 basic, SAR 2,000 housing and SAR 1,000 transport:

This is also why moving money between housing and transport changes the GOSI figures but not the end-of-service award or overtime, which both use the actual wage.

What to check when you start or change a job in Saudi Arabia

• Confirm your first GOSI registration date. It fixes whether you are on the old or the new rate table for the rest of your career.
• Check the split of your offer. Basic and housing set your GOSI base; everything else does not.
• Compare offers on take-home pay. Two offers with the same gross can differ by the GOSI deduction if one has a larger housing allowance.
• Look at your first payslip. The deduction should match the base times your rate. If it does not, ask payroll which base and table they used.

The employee view

• Check your track. Your payslip deduction should be 9.75% (old system) or 10.75% (new system, from 3 July 2026) of basic plus housing.
• Expect a change every July if you are on the new system, until 2028.
• Check the base, not the gross. If your deduction looks too high, see whether transport or other allowances were wrongly included.
• Expats: nothing should be deducted from your salary for GOSI. The employer's 2% is a cost to the employer, not a deduction.
• GOSI is not gratuity. Your end-of-service award under Saudi Labour Law Articles 84 and 85 is separate and is paid by the employer. For example, a resignation after 4 years on SAR 7,000 basic and SAR 3,000 allowances gives SAR 6,666.67, one third of the SAR 20,000 full entitlement.

The employer view: budgeting GOSI

For a Saudi hire, GOSI adds the employer rate on top of salary, so it belongs in the cost-to-hire from the start:

• Record each Saudi employee's first GOSI registration date. It decides the rate table, and two Saudis on the same salary can cost different amounts.
• Update payroll every 3 July for new-system employees until the 11% annuity is reached in 2028.
• Structure pay with the base in mind. Only basic and housing count, and the base is capped at SAR 45,000.
• Remember the 2% for expats. It is small but applies to every non-Saudi employee.
• Overtime is separate: Saudi Labour Law Article 107 pays overtime at the actual hourly wage plus 50% of the basic hourly wage.

Sources and review date

Every rule and number in this guide comes from the same rule set that powers the MenaJobs calculators. The sources below were last checked on 23 September 2026. Labour rules change, so confirm with the official source, your contract or a qualified adviser before you rely on a figure in a dispute.

• GOSI contribution rates (Mercans; gosi.gov.sa FAQ) (Social Insurance Law (2024)). Secondary summary — confirm with the official text; reviewed 23 September 2026, next review due 1 July 2027.
• Saudi Labour Law Arts 84–85 (Etqan Law Firm) (Arts 84, 85). Secondary summary — confirm with the official text; reviewed 23 September 2026.
• Saudi Labour Law Art 107 (Art 107). Secondary summary — confirm with the official text; reviewed 23 September 2026.

This guide is general information, not legal advice.