How to Calculate GOSI Contributions for Saudi and Non-Saudi Employees

The General Organization for Social Insurance (GOSI) administers social insurance coverage in Saudi Arabia. GOSI contributions differ depending on whether an employee is a Saudi national or a non-Saudi employee. For payroll teams, it is important to identify the employee's applicable insurance branches, determine the contributory wage, and apply the correct employer and employee percentages.

The following overview reflects GOSI information available for 2026. Employers should verify current GOSI rules before processing payroll because contribution rules and implementation requirements can change.

1. Understand the Main GOSI Components

For standard payroll processing, the main components are:

• Annuities/Pension Branch: applies to Saudi employees covered by the branch.
• Occupational Hazards Branch: applies to workers regardless of nationality.
• SANED unemployment insurance: applies to eligible Saudi employees.

GOSI states that the Occupational Hazards Branch is mandatory for workers without distinction based on nationality, while the Annuities Branch applies to Saudi nationals.

2. GOSI Contributions for Saudi Employees

For Saudi employees covered by the standard Annuities Branch, GOSI states that the contribution is 18% of the contributory wage:

• Employer: 9%
• Employee: 9%

The Occupational Hazards contribution is an additional 2%, paid entirely by the employer.

Eligible Saudi employees are also subject to SANED. GOSI's current FAQ states a 2% SANED contribution, divided equally between employer and employee at 1% each.

Example

Suppose a Saudi employee has a monthly contributory wage of SAR 10,000.

Contribution	Rate	Employer	Employee
Annuities	9%	SAR 900	SAR 900
Occupational Hazards	2%	SAR 200	—
SANED	1%	SAR 100	SAR 100
Total		SAR 1,200	SAR 1,000

The employee's total GOSI-related deduction in this example would therefore be SAR 1,000, while the employer's contribution would be SAR 1,200.

The calculation assumes the employee is fully covered by these branches and that SAR 10,000 is the applicable contributory wage.

3. GOSI Contributions for Non-Saudi Employees

Non-Saudi employees generally do not participate in the Saudi Annuities Branch in the same way as Saudi employees. However, the Occupational Hazards Branch applies to both Saudi and non-Saudi workers.

GOSI specifies the Occupational Hazards contribution at 2% of the contributory wage, paid entirely by the employer.

Example

If a non-Saudi employee has a contributory wage of SAR 10,000:

SAR 10,000 × 2% = SAR 200

Therefore:

• Employer contribution: SAR 200
• Employee deduction: SAR 0

SANED is also limited to eligible Saudi contributors; GOSI states that SANED is mandatory for Saudi workers covered by the pension branch who are under the applicable age limit.

4. What Is the Contributory Wage?

The percentage alone is not enough to calculate GOSI. Payroll first needs to determine the employee's contributory wage.

For the standard Saudi Annuities Branch calculation, GOSI describes the contribution as being based on basic wage plus housing allowance.

For example:

• Basic salary: SAR 12,000
• Housing allowance: SAR 3,000
• Contributory wage: SAR 15,000

The applicable GOSI percentages would then be calculated using SAR 15,000, subject to the applicable rules and limits.

Employers should not automatically treat every payroll component as part of the contributory wage. The classification of allowances and other earnings should be checked against current GOSI requirements.

5. GOSI Maximum and Minimum Wage Limits

GOSI's current FAQ identifies a maximum contributory wage of SAR 45,000. It also identifies minimum amounts of SAR 1,500 for the Annuities Branch and SAR 400 for Occupational Hazards coverage for workers not covered by the Annuities Branch.

Payroll software should therefore have configurable minimum and maximum limits rather than simply applying a percentage to the employee's entire gross salary.

6. Saudi vs. Non-Saudi GOSI Calculation

A simplified comparison is:

Item	Saudi Employee	Non-Saudi Employee
Annuities/Pension	Applicable if covered	Generally not applicable
Annuities employer share	9%	—
Annuities employee share	9%	—
Occupational Hazards	2% employer	2% employer
SANED	Applicable to eligible Saudis	Not applicable
SANED employer share	1%	—
SANED employee share	1%	—

These are standard rates reflected in GOSI's published information; individual cases can have different treatment depending on the employee's circumstances and applicable social-insurance rules.

7. Consider the Employee's Joining and Termination Dates

Payroll teams should also pay attention to the employee's entry and termination dates.

GOSI states that contributions for the month an employee enters employment are collected on the basis of a complete month. For the termination month, contributions are generally not collected for part of the month unless employment ends on the last day of that month.

This rule is important when calculating the first and final payroll for an employee.

8. Handle Multiple Employers Correctly

An employee can have more than one employer. GOSI explains that where a contributor works for multiple employers, each employer is liable for contributions, subject to the applicable rules and the maximum contributory wage.

Payroll teams should therefore avoid assuming that each employer can calculate contributions independently without considering the applicable GOSI wage ceiling.

9. Maintain Accurate GOSI Wage Records

Employers should ensure that the wage registered with GOSI corresponds to the employee's actual applicable contributory wage.

GOSI's employer guidance emphasizes registration of workers and accurate wage information. Incorrect wage registration can lead to contribution discrepancies and compliance issues.

A regular reconciliation should compare:

• Payroll salary
• Basic salary
• Housing allowance
• GOSI contributory wage
• Employee contribution
• Employer contribution
• GOSI records

10. Use Payroll Software to Automate GOSI Calculations

Payroll software can simplify GOSI processing by automatically applying the appropriate rules according to employee nationality and insurance coverage.

Useful features include:

• Saudi/non-Saudi employee classification
• GOSI wage configuration
• Automatic employer contributions
• Automatic employee deductions
• Occupational Hazards calculation
• SANED calculation
• Contribution ceilings
• Joining and termination handling
• GOSI reconciliation
• Payroll reports
• Audit trails

This reduces the risk of applying Saudi contribution rates to non-Saudi employees or failing to include the Occupational Hazards contribution.

Conclusion

Calculating GOSI contributions starts with identifying the employee's nationality, insurance coverage, contributory wage, and applicable GOSI branches. For standard cases, Saudi employees can be subject to Annuities, Occupational Hazards, and SANED contributions, while non-Saudi employees are generally subject to Occupational Hazards coverage.

For 2026, GOSI's published information identifies 18% for the Annuities Branch, split 9%/9%; 2% for Occupational Hazards paid by the employer; and 2% for SANED, split 1%/1% for eligible Saudi employees.

Employers should configure payroll systems using the latest GOSI requirements and verify employee-specific circumstances before finalizing monthly contributions.

GOSI calculations for nationals and expatriate employees in Saudi Arabia can be configured in InnBuilt Payroll Software based on employee category, eligible earnings, and effective contribution rules. Automated employee and employer calculations reduce manual errors and create clear monthly reports.