How does the Salary Calculator work?
The Qoyod Salary Calculator is a free tool that helps you know your net monthly income after allowances and deductions in seconds. Enter your basic salary, allowances, and deduction rate, and the result appears instantly with no manual math. There’s an option to add social insurance (10%) for Saudi employees in the private sector under GOSI.
Formula used
The calculator uses the standard accounting formula for net salary:
Net salary = (basic salary + allowances) − (percentage deductions + fixed deductions + social insurance)
- Gross salary: basic salary + allowances (housing, transport, role-specific…).
- Percentage deductions: a percentage of the gross salary (e.g., income tax in some countries, or disciplinary deductions).
- Social insurance: 10% of basic salary for Saudi employees, deducted automatically when the option is enabled.
- Net salary: the amount that actually lands in the employee’s account at month-end.
Worked example
An employee with a basic salary of 10,000 SAR, with allowances of 2,000 SAR, and deductions at 5% and a fixed deduction of 500 SAR, with social insurance enabled:
- Gross salary: 10,000 + 2,000 = 12,000 SAR
- Percentage deductions: 12,000 × 5% = 600 SAR
- Social insurance: 10,000 × 10% = 1,000 SAR
- Total deductions: 600 + 500 + 1,000 = 2,100 SAR
- Net salary: 12,000 − 2,100 = 9,900 SAR
Why do you need a salary calculator?
- Employee: to know exactly what will hit their account before signing a contract or accepting a new offer.
- Employer: to compute monthly payroll cost quickly without errors.
- Accountant: to verify payslips and reconcile them with the HR system.
Payroll automation with Qoyod
If you run a company, manual salary math eats time and opens the door to errors. Qoyod Payroll Full automation for monthly payroll, automatic social-insurance calculations, payslip generation, and direct posting of accounting entries, all integrated with the accounting software in a single dashboard.
Frequently asked questions
Does the calculator include income tax?
Saudi Arabia does not levy income tax on individual salaries. The “deduction rate” field is useful for countries that apply income tax, or for disciplinary deductions and advances.
What social-insurance rate is applied?
The calculator uses 10% of basic salary, the Saudi employee’s GOSI share in the private sector. The employer’s share (12%) is not deducted from the employee’s salary.
Are allowances included in the social-insurance calculation?
Under GOSI, contributions are calculated on the “contributory wage,” which includes basic salary and housing allowance in most cases. This calculator applies the rate to the basic salary only for simplicity, you can add the housing allowance to the basic salary for a more precise figure.
Can I use the calculator with any currency?
Yes, the same formula applies to any currency. The result is shown in “SAR”, but the calculation logic is universal.