What is GOSI Contributions?
GOSI contributions are mandatory social insurance payments to the General Organization for Social Insurance (GOSI) in Saudi Arabia. They fund pension benefits, unemployment cover (SANED) and occupational hazard insurance. Employers contribute for all employees, Saudi and non-Saudi, under different branches; employees contribute only where they are Saudi nationals.
How It Works
- Register the employer and each employee with GOSI.
- Declare the monthly contributory wage — basic wage plus the housing allowance (cash, or in kind valued at two months’ basic wage). Transport, food and other allowances are outside the base (Executive Regulation Art. 17). The ceiling is SAR 45,000/month under Article 8 of the Law (م/273).
- Apply the rate set by the employee’s first registration date, not their hire date.
- Non-Saudis: 2% occupational hazards, employer only.
- Pay within the first 15 days of the month following the month due (Executive Regulation Art. 24).
Existing system — first registered before 3 July 2024
Pensions 9% each side, SANED 0.75% each side, occupational hazards 2% employer only — totals 9.75% employee / 11.75% employer.
New system — م/273, first registered on or after 3 July 2024
Pensions step 0.5% per side each year, every step on 1 July:
| Effective from | Pensions — employee | Pensions — employer |
|---|---|---|
| 3 July 2024 | 9% | 9% |
| 1 July 2025 | 9.5% | 9.5% |
| 1 July 2026 — in force now | 10% | 10% |
| 1 July 2027 | 10.5% | 10.5% |
| 1 July 2028 | 11% | 11% |
With SANED and occupational hazards on top, a new-system subscriber today costs 10.75% employee / 12.75% employer.
Saudi Context
GOSI is a real payroll cost on top of salary, and it shapes Saudization economics: Nitaqat quotas raise Saudi headcount and therefore the GOSI burden, while Saudi employees accrue pension entitlements. Late payment carries a fine of 2% of the contribution due for every month of delay or part of a month (Law Art. 9/3) — a full waiver is possible only where the delay did not exceed 10 days (Executive Regulation Art. 25). Qoyod’s payroll feature lets you define a social insurance plan with the employee and company shares and their linked accounts, and posts the contributions automatically when the payroll run is executed.
Example
A Saudi employee earns SAR 10,000 per month: SAR 8,000 basic + SAR 1,000 housing + SAR 1,000 transport. The GOSI base is SAR 9,000 — transport is excluded. Under the existing system the employer pays 11.75% = SAR 1,057.50 and the employee is deducted 9.75% = SAR 877.50, a total of SAR 1,935. Under the new system at the 1 July 2026 rates those become SAR 1,147.50 and SAR 967.50.