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 for a Saudi employee under the existing system (9.75%), per the General Organization for Social Insurance.
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: 9.75% of basic salary for a Saudi employee under the existing system, 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 × 9.75% = 975 SAR
- Total deductions: 600 + 500 + 975 = 2,075 SAR
- Net salary: 12,000 − 2,075 = 9,925 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. The payroll feature inside Qoyod’s accounting software lets you run the monthly payroll, calculate social insurance, generate payslips, and post the accounting entries straight to your books, all in a single dashboard with no manual work, and browse every HR guide and template in the HR hub.
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 9.75% of basic salary, which is the Saudi employee’s share under the existing system — anyone first registered before 3 July 2024: 9% pensions plus 0.75% SANED. Anyone who joined the workforce after that date falls under the new system, where the employee’s share is 10.75% today and rises half a point every 1 July until it reaches 11.75% in 2028. A non-Saudi employee has nothing deducted at all: the 2% occupational-hazards contribution is paid by the employer alone. The employer’s share for a Saudi employee is 11.75% under the existing system and 12.75% under the new one, and neither is 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. The contributory wage also has two bounds, and the calculator applies both: a floor of SAR 1,500 and a ceiling of SAR 45,000 per month, so anything above the ceiling does not count towards the contribution.
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.
