GOSI contributions in Saudi Arabia: rates and the contributory wage

What are the GOSI contribution rates?

For a Saudi employee on the old system, annuities are 9% from the employee and 9% from the employer, SANED unemployment insurance is 0.75% from each, and occupational hazards are 2% from the employer. That makes 9.75% from the employee and 11.75% from the employer. For a non-Saudi employee the employer pays 2% for occupational hazards only.

What changed with the 2024 Social Insurance Law?

People with no contribution period before 3 July 2024 are on the new system. Their annuities rate starts at 9% from each side and rises by half a point on each side every 1 July from 2025, until it reaches 11% each in 2028. Everyone who contributed before that date keeps the old rates.

Which wage are contributions based on?

The contributory wage is the basic wage, with commissions counted as basic, plus the cash housing allowance. When housing is given in kind it counts as two months' basic wage a year. Overtime, bonuses and other benefits in kind are left out. The wage is capped at SAR 45,000 a month, with a floor of SAR 1,500 for Saudis.

For occupational hazards the floor is SAR 400.

How do you calculate a month's contributions?

Add the basic wage and the housing allowance, keep the result between the floor and the SAR 45,000 cap, then apply the rates for the employee's nationality and system. For a Saudi on the old system with a basic wage of SAR 8,000 and housing of SAR 2,000, the employee pays SAR 975 and the employer SAR 1,175.

1. Add the basic wage, commissions and the cash housing allowance; for housing in kind, add a sixth of the basic wage.
2. Keep the result within the floor and the SAR 45,000 cap: this is the contributory wage.
3. Check the employee's nationality and whether they are on the old or the new system.
4. Apply the employee's rate and the employer's rate to the contributory wage.
5. Pay the month's total to GOSI by the deadline.

For a non-Saudi employee on the same SAR 10,000, the employer pays 2% for occupational hazards, SAR 200, and nothing is taken from the salary.

When are contributions due?

GOSI issues the month's invoice on the first day of the month. Contributions are due within the first 15 days of the following month, so a month's payroll should be closed in time to check the contribution list against GOSI's invoice before you pay.

What about employees from other GCC states?

Employees who are nationals of another GCC state are covered under their home country's scheme through the GCC insurance protection extension. The employer still pays through GOSI, at the rates and on the wage base of the employee's home country, which differ from the Saudi rates above.

How DynamoOS handles it

Dynamo Payroll calculates GOSI contributions on every salary slip, on the old or the new system for each employee, and prepares the monthly contribution list for you to review and upload yourself in GOSI Business. The rates and steps are settings, so a change announced by GOSI is a change you can make the same day.