Formula
What is GOSI and what gets deducted
GOSI (المؤسسة العامة للتأمينات الاجتماعية / General Organization for Social Insurance) is the Saudi mandatory social insurance program. For Saudi national employees in the private sector, two deductions come out of every paycheck: the 9% pension contribution (towards the General Annuity branch - your retirement pension) and 0.75% SANED (نظام ساند - unemployment insurance, which pays a portion of your salary if you lose your job involuntarily). Together: 9.75% deduction. Expatriate employees pay neither - they have no GOSI deductions whatsoever.
What counts as 'pensionable wage'
GOSI is not calculated on your full gross salary. It applies only to the 'pensionable wage,' which under current GOSI rules equals BASIC salary + HOUSING allowance (whether paid in cash or provided as a company unit). Transport allowance, phone allowance, food/meals allowance, education allowance, and one-off bonuses (annual bonus, performance incentive) are EXCLUDED from the GOSI calculation - though they still count toward your gross. So if your basic is SAR 6,000, housing is SAR 2,000, transport is SAR 800, and other is SAR 200: pensionable = 8,000; deduction = 9.75% × 8,000 = SAR 780; gross = 9,000; net = 8,220.
The SAR 45,000 cap
GOSI's pensionable wage is capped at SAR 45,000 per month. If your basic + housing exceeds this, the cap applies and you pay GOSI on SAR 45,000 only. Maximum monthly employee deduction: SAR 45,000 × 9.75% = SAR 4,387.50. This rewards high earners by limiting their absolute deduction, but also means your pension entitlement at retirement is calculated based on the capped wage - not your actual higher salary. Worth knowing if you're planning for retirement.
Saudi vs expat - a fundamental difference
This is where most calculators get it wrong. Saudi nationals: 9% pension + 0.75% SANED = 9.75% employee deduction. Their employer pays a matching 9% + 0.75% + 2% occupational hazard. Expatriates: zero employee deductions; full gross goes home. Their employer pays only 2% occupational hazard + the SAR 800/month HRDF (Human Resources Development Fund) Saudization fee. So while Saudi salaries are 'reduced' by 9.75%, that 9.75% builds future pension entitlement and unemployment safety net - both unavailable to expats.
What it costs the employer (the 'total cost' view)
Toggle on 'Show employer cost' to see what the company actually spends to employ you. For a Saudi employee at SAR 10,000 gross (8,000 basic + 2,000 housing): the employer pays the SAR 10,000 + 9% pension (900) + 0.75% SANED (75) + 2% occupational hazard (200) = SAR 11,175 monthly. For an expat at the same gross: SAR 10,000 + 2% occupational hazard (200) + SAR 800 HRDF = SAR 11,000. The difference is small but the calculation logic is different - and important for salary negotiations.
Practical notes for Saudi employees
Check your payslip each month - your deduction should be exactly 9.75% × (basic + housing capped at 45K). If you see other deductions labelled 'GOSI' or 'تأمينات,' ask HR for the breakdown. The SANED 0.75% is sometimes shown separately, sometimes combined with the 9%. Bonuses and incentives are NOT subject to GOSI - so a one-off SAR 5,000 bonus arrives in full to your account. Government sector employees follow a slightly different rule administered by the Public Pension Agency (PPA), so this calculator targets private-sector only.
Frequently asked questions
For Saudi nationals working in the private sector: 9.75% total - that's 9% for the GOSI pension fund plus 0.75% for SANED (unemployment insurance). Both deductions apply only to your 'pensionable wage' which equals basic salary + housing allowance, capped at SAR 45,000 per month. For expatriates: zero deductions. The full gross goes to the employee.
No. Expatriate employees in Saudi Arabia pay neither GOSI nor SANED. Their employer pays 2% occupational hazard insurance and a SAR 800 monthly HRDF (Saudization fee) to the government, but nothing comes out of the employee's paycheck. This is why a Saudi and an expat on the same gross salary take home different amounts - the Saudi 'loses' 9.75% to GOSI, but builds pension entitlement.
Only the basic salary and housing allowance count. Transport allowance, phone allowance, food/meals allowance, education allowance, performance bonuses, and one-off bonuses are all EXCLUDED. So if you have basic 6,000 + housing 2,000 + transport 800 + other 400 = SAR 9,200 gross, your pensionable wage is just 8,000 (basic + housing). GOSI deduction = 9.75% × 8,000 = SAR 780.
The pensionable wage is capped at SAR 45,000 per month, so the maximum employee deduction is 45,000 × 9.75% = SAR 4,387.50 per month, regardless of how high your actual basic + housing goes. Note that this cap also limits your future pension entitlement - high earners' pensions are calculated on the capped wage, not their full salary.
No - regular monthly salary components (basic + housing) are subject to GOSI, but one-off bonuses, annual incentives, and performance awards are NOT. So a SAR 5,000 quarterly bonus arrives in full (no GOSI deducted), but if your monthly salary is increased by SAR 5,000 in basic + housing, that increase IS subject to GOSI from that month onward.
Sources
- General Organization for Social Insurance (GOSI) - Subscription Rates— GOSI - Kingdom of Saudi Arabia
- SANED (Unemployment Insurance) Program— GOSI
- Human Resources Development Fund (HRDF)— HRDF - Kingdom of Saudi Arabia
- Saudi Labor Law - Wage and benefits regulations— Ministry of Human Resources and Social Development (HRSD)
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