# 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.

- URL: https://www.pyalm.com/blog/gosi-calculator-guide
- Author: Fadhil Abdulla
- Category: Free Tools
- Published: 2026-06-23
- Updated: 2026-06-23

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## 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](https://www.pyalm.com/free-tools/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

1. Determine the contributory wage (basic + housing).
2. Apply the employee share and the employer share.
3. Sum across your workforce for your monthly GOSI bill.

## Budget your payroll accurately

The free [GOSI Calculator](https://www.pyalm.com/free-tools/gosi-calculator) breaks down employer and employee contributions so you can budget true employment cost. Pair it with the [Saudi VAT Calculator](https://www.pyalm.com/free-tools/saudi-vat-calculator) for the rest of your KSA compliance.

[Open the GOSI Calculator](https://www.pyalm.com/free-tools/gosi-calculator) | [More HR & payroll tools](https://www.pyalm.com/free-tools)