GOSI (General Organization for Social Insurance) runs Saudi Arabia's mandatory social-insurance scheme, protecting private-sector workers through a monthly contribution in return for benefits including retirement, disability, survivor pensions, and unemployment compensation. This guide explains the updated contribution rates, how they are calculated, and the benefits you receive.
In this guide
1. What is GOSI?
GOSI is a mandatory, solidarity-based scheme that provides replacement income for an employee and their family on retirement, disability, death, or job loss. It is funded by monthly contributions paid jointly by the employee and the employer, and administered by the General Organization for Social Insurance, into which the civil and military pension systems have been merged.
2. Contribution rate (employee & employer)
Under the system applied to existing subscribers, contributions break down as follows:
- Saudi employee: 9.75% (9% pension + 0.75% SANED).
- Employer: 11.75% (9% pension + 2% occupational hazards + 0.75% SANED).
- Total contribution: 21.5% of the insurable wage.
3. The new 2025-2028 rates
GOSI applied a gradual increase to the contribution rate for employees under the new system (enrolled from 3 July 2024), starting July 2025, at 0.5% per year on the pension branch only:
| Period | Employee | Pension | SANED |
|---|---|---|---|
| Before July 2025 | 9.75% | 9.00% | 0.75% |
| July 2025 | 10.25% | 9.50% | 0.75% |
| July 2026 | 10.75% | 10.00% | 0.75% |
| July 2027 | 11.25% | 10.50% | 0.75% |
| July 2028 | 11.75% | 11.00% | 0.75% |
Subscribers enrolled before 3 July 2024 remain at 9.75%. The increase applies to the pension branch only; SANED stays at 0.75%.
4. The insurable wage
The contribution is not calculated on the full salary, but on the insurable wage, which:
- includes basic salary + housing allowance;
- excludes transport and variable allowances (commissions, bonuses);
- minimum: SAR 1,500 per month;
- maximum: SAR 45,000 per month (max employee deduction SAR 4,387.50 at 9.75%).
5. Branches: pension, SANED & occupational hazards
- Pension branch (9%): funds the retirement pension, non-occupational disability pension, and survivor pension on death.
- SANED – unemployment (0.75%): pays a temporary monthly benefit to a Saudi employee who loses their job through no fault of their own, subject to subscription-period and job-search conditions.
- Occupational hazards (2%): borne by the employer alone, covering work injuries and illnesses for all workers including expats.
6. Expats and non-Saudis
A non-Saudi employee is not subject to pension or SANED contributions, so no GOSI deduction appears on their payslip. Their coverage is limited to the Occupational Hazards branch (2%), paid in full by the employer. As a result, an expat's net salary equals their gross salary (no insurance deduction and no income tax).
7. GOSI benefits
- Retirement pension: lifetime monthly income on meeting age and subscription conditions.
- Disability pension: for inability to work from non-occupational causes.
- Survivor pension: paid to the subscriber's family on death.
- SANED benefit: temporary income during unemployment.
- Occupational-hazard compensation: treatment and compensation for work injuries and illnesses.
8. How to calculate your contribution
Employee contribution = (basic salary + housing allowance) × contribution rate.
Example: basic 10,000 + housing 2,500 = SAR 12,500 × 9.75% = SAR 1,218.75 per month.
To compute your net pay after GOSI automatically, use the Saudi salary calculator, and for the rest of your rights see the Labor Law guide.
Frequently Asked Questions
What is the GOSI deduction rate for a Saudi employee?
A Saudi employee contributes 9.75% of the insurable wage, split into 9% for the pension branch and 0.75% for SANED (unemployment insurance). This rises gradually for those under the new system.
Which salary is GOSI calculated on?
It is calculated on basic salary + housing allowance, excluding transport and variable allowances. The minimum insurable wage is SAR 1,500 and the maximum is SAR 45,000 per month.
Do expats pay GOSI in Saudi Arabia?
No. Non-Saudi employees do not pay pension or SANED contributions. An expat is covered only under the Occupational Hazards branch (2%), which the employer pays in full and which does not appear on the payslip.
What is the difference between the pension branch and SANED?
The pension branch (9%) funds retirement, disability, and survivor pensions. SANED (0.75%) is unemployment insurance that pays a temporary benefit to a Saudi employee who loses their job under set conditions.
What is the maximum monthly GOSI deduction?
Since the maximum insurable wage is SAR 45,000, the maximum monthly employee deduction at 9.75% is SAR 4,387.50.
When did the new 10.25% rate start?
The 10.25% rate started in July 2025 for employees under the new system (those enrolled from 3 July 2024), rising 0.5% per year to 11.75% by 2028. Those enrolled earlier remain at 9.75%.
Official sources
The figures and rules on this page are based on the following official references:
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