Saudi Salary Glossary

This glossary collects the core definitions you need to understand your salary and financial entitlements. Use the link in each entry to jump to the related calculator or page.

Basic Salary

The core amount agreed in the employment contract before any allowances. It is the basis for allowances, end-of-service benefits, and the overtime hourly rate. → Go to the tool

Gross Salary

Basic salary + housing allowance + transport allowance + any other fixed allowances: i.e., the figure before any deduction.

Net Salary

Gross salary after the GOSI deduction (for Saudis) or the civil-pension deduction (for government staff). This is the amount actually deposited in your bank account. → Go to the tool

GOSI (Social Insurance)

The scheme run by the General Organization for Social Insurance. 9.75% is deducted from a Saudi employee's insurable wage (9% pension + 0.75% SANED), rising gradually for new entrants. → Go to the tool

SANED (Unemployment Insurance)

A 0.75% branch of GOSI that provides temporary compensation to a Saudi employee who loses their job, subject to conditions.

Insurable Wage

The base on which GOSI is calculated: basic salary + housing allowance (transport is excluded), capped at SAR 45,000 per month.

Housing Allowance

An allowance paid as a percentage of basic salary (commonly 25%, up to 40%), included in the GOSI insurable wage.

Transport Allowance

A fixed monthly amount added to salary (commonly SAR 500), excluded from the GOSI calculation.

End-of-Service Benefits (EOSB)

A gratuity paid when employment ends: in the private sector, half a month's wage per year for the first 5 years and a full month thereafter; in the government sector, a percentage of annual salary. → Go to the tool

Saudi Labor Law

The reference law governing private-sector employment in the Kingdom, covering working hours, leave, overtime, and end-of-service benefits.

Civil Service HR Regulation

The executive regulation governing government employees, including overtime, promotions, and allowances.

Salary Scale

The official structure that sets government salaries, made up of ranks and grades. There are 60+ specialized scales in the Kingdom. → Go to the tool

Grade (Rank)

The job level within a salary scale (e.g., 1 to 15 on the General Civil Service Scale), defining the basic-salary range. → Go to the tool

Step

The sub-level within a single grade, which an employee moves up via the annual increment. → Go to the tool

Annual Increment

A fixed periodic raise granted when an employee completes a year in their step; the value varies by grade and scale.

Overtime

Hours worked after official hours. Private sector pays hourly rate × 1.5; government pays hour-for-hour (×1.0) with daily caps. → Go to the tool

Wage Protection System (WPS / Mudad)

A system requiring private-sector firms to pay salaries through approved banks no later than the 27th of the month, via the Mudad platform. → Go to the tool

Qiwa Platform

A government platform under the Ministry of Human Resources for labor-market services such as contracts, service transfer, and an EOSB calculator.

Civil Pension

A scheme deducting 9% of a Saudi government employee's salary toward a retirement pension, payable after 25 years of service.

Citizen Account

A government subsidy for eligible families, paid on the 10th of each Gregorian month. → Go to the tool

Developed Social Security

A pension program for eligible beneficiaries from the Ministry of Human Resources, paid on the 1st of each Gregorian month. → Go to the tool

Articles 84 & 85

The Labor Law articles governing the entitlement, value, and conditions of end-of-service benefits on resignation or contract end. → Go to the tool

Article 107

The Labor Law article setting private-sector overtime pay at a 50% premium over the regular hourly rate. → Go to the tool

GASTAT (Statistics Authority)

The official authority for labor-market and wage statistics in the Kingdom, and the source of average-salary data.