Don’t risk compliance issues.
Use ZenHR’s free GOSI Compliance Calculator to check your company’s compliance status, identify potential gaps, and stay aligned with the latest Saudi labor regulations.
ZenHR automates GOSI compliance, payroll calculations, and employee data updates - built specifically for Saudi Arabia.
Find quick answers to common questions about ZenHR’s features, setup, and support.
GOSI (General Organization for Social Insurance) is the Saudi government body that manages mandatory social insurance contributions. Employers and employees both contribute a percentage of each Saudi national's salary every month. The funds cover retirement pensions, work-related injuries, and unemployment insurance (SANED).
For Saudi nationals hired before July 3, 2024 (System A): employees contribute 9.75% and employers contribute 11.75% of insurable salary. For Saudi nationals hired on or after July 3, 2024 (System B): rates are currently 9.75% employee / 11.75% employer, escalating annually until they reach 11.75% / 13.75% in July 2028. Expat employees are not subject to pension contributions; only a 2% occupational hazard fee is paid by the employer.
No. Expatriate employees are exempt from GOSI pension and SANED contributions. Employers pay a 2% occupational hazard (work injury) insurance premium on the expat's insurable salary, but no amount is deducted from the employee's pay.
Saudi Arabia introduced a dual-rate system effective July 3, 2024. Employees already registered before that date remain on fixed System A rates. New hires from that date onward fall under System B, which starts at the same rates as System A but increases the annuity contribution by 0.5 percentage points each July, reaching full rates in July 2028. This affects employer payroll cost planning for any new Saudi hires.
GOSI contributions are calculated on insurable salary, defined as basic salary plus housing allowance only. The maximum insurable salary is SAR 45,000 per month. Any amount above this cap is excluded from the GOSI calculation. The minimum is SAR 1,500 per month.
Multiply each Saudi employee's insurable salary (basic + housing, capped at SAR 45,000) by the applicable contribution rate. Add the employer portion and employee portion separately across all employee groups: pre-July 2024 hires, post-July 2024 hires, and expats each follow different rules. This calculator does all of that automatically and produces a downloadable PDF report.
System B rates increase every July until 2028. The annuity portion starts at 9% each for employer and employee in Jul 2024, rises by 0.5% per year, and reaches 11% each in Jul 2028. Adding occupational hazard (2% ER) and SANED (0.75% each), total rates go from 11.75% ER / 9.75% EE today to 13.75% ER / 11.75% EE at full implementation.
Yes. All private-sector employers in Saudi Arabia must register with GOSI and make monthly contributions for every Saudi national on their payroll. Non-compliance can result in penalties, fines, and restrictions on government services. Employers must also register expat employees for occupational hazard coverage.
