How GOSI Works: Saudi Social Insurance Contributions Explained
GOSI contributions in Saudi Arabia differ for Saudi and non-Saudi employees. Here's how the rates work and how to calculate them for payroll.
What is GOSI?
The General Organization for Social Insurance (GOSI) administers social insurance in Saudi Arabia. Both employers and employees contribute a percentage of the employee's monthly wage, covering pensions, occupational hazards, and unemployment insurance (SANED).
Rates depend on nationality
- Saudi employees: contributions cover pension, SANED, and occupational hazards, split between employer and employee, plus an employer-only occupational hazard portion.
- Non-Saudi employees: generally only the occupational hazards branch applies, and it is paid by the employer.
Because the rates have been phased in over recent years, always confirm the current percentages — the GOSI Calculator lets you apply the right rate to each employee.
What counts as the contributory wage
GOSI is calculated on basic salary plus housing allowance, within a defined floor and ceiling. Other allowances are typically excluded.
How to calculate
- Determine the contributory wage (basic + housing).
- Apply the employee share and the employer share.
- Sum across your workforce for your monthly GOSI bill.
Budget your payroll accurately
The free GOSI Calculator breaks down employer and employee contributions so you can budget true employment cost. Pair it with the Saudi VAT Calculator for the rest of your KSA compliance.