GOSI contribution calculator 2026

The 2026 GOSI rates at a glance

Three branches make up a GOSI contribution: annuities (the pension), SANED (unemployment insurance) and occupational hazards. Which ones apply, and at what rate, depends on nationality and on when the employee first contributed.

Sources: GOSI Employer FAQs for annuities and occupational hazards, GOSI news for SANED, PwC for the combined old-law rates and the non-Saudi rate, and the Social Insurance Law for the new-law schedule. New-law contributors were on 9.5% per side between July 2025 and June 2026 (10.25% employee, 12.25% employer combined).

What the contributory wage includes

The GOSI Employer FAQs define the contributory wage as the basic wage plus the housing allowance, whether the allowance is paid in cash or the employer provides housing, in which case GOSI values it at two months of basic salary. It is measured before any deduction for debts, instalments or disciplinary penalties. Commissions and sales or profit percentages count as basic wage. PwC summarises the same base as basic wage, cash or in-kind housing allowance and commissions.

That is why the calculator has a separate field for other allowances. Transport, phone, education and similar allowances are part of what the employee is paid and part of what the employer spends, but they sit outside the GOSI base. The tool keeps them in gross pay and in total employer cost and leaves them out of the contribution.

Floors and the SAR 45,000 ceiling

The contributory wage is capped at SAR 45,000 a month, so an employee on SAR 60,000 contributes on SAR 45,000. At the other end, the GOSI FAQs set a minimum of SAR 1,500 for the annuities branch and SAR 400 for occupational hazards. The calculator applies both limits to the base before any rate, and tells you when it has done so. The SANED contribution is computed on the same base as annuities.

Saudi employees registered before 3 July 2024

Most Saudi employees in a 2026 payroll are on this schedule. The employee pays 9% annuities plus 0.75% SANED, 9.75% in total. The employer pays 9% annuities, 0.75% SANED and 2% occupational hazards, 11.75% in total, for a combined 21.5%. The Social Insurance Law of 2 July 2024 explicitly excludes contributors who have contribution periods before its effective date, so these rates do not step up.

Saudi employees on the new Social Insurance Law: the step-up schedule

Royal Decree M/273 was issued on 2 July 2024 and, under Article 63 of the law, entered into force the following day, 3 July 2024. Clause Second of the decree keeps anyone with contribution periods before that date on the earlier laws, so the new schedule applies only to contributors with no prior contribution history. For them clause Third raises the annuities contribution in 12-month blocks counted from the effective date, split equally between employee and employer. SANED and occupational hazards do not change.

The calculator counts months from July 2024 rather than calendar years, which is why it asks for the payroll month once the new-entrant toggle is on. On that count the 20% block (10% per side, 10.75% for the employee once SANED is added) starts with the July 2026 payroll and the 22% block (11% per side) with July 2028. That is the same July 2026 rate payroll advisers published ahead of the change, for example the Saudi Compliance Institute in May 2026. The retirement-age changes in the same law are a separate matter and do not alter the contribution rate.

Non-Saudi employees: 2% occupational hazards only

Expatriate employees are not enrolled in annuities or SANED. The employer pays 2% of the contributory wage to the occupational hazards branch and nothing is deducted from the employee, as PwC states and the GOSI FAQs confirm. The SAR 45,000 ceiling and the SAR 400 floor still apply. The new-entrant toggle has no effect for non-Saudi employees.

How the formula works

1. Contributory wage = basic wage + housing allowance. Other allowances are excluded (GOSI Employer FAQs).
2. Apply the limits: no less than SAR 1,500 for annuities and SANED, no less than SAR 400 for occupational hazards, and no more than SAR 45,000 for every branch.
3. Saudi employee: annuities at 9% per side, or the new-law step for the payroll month when the employee first contributed on or after 3 July 2024; SANED at 0.75% per side; occupational hazards at 2% for the employer.
4. Non-Saudi employee: occupational hazards at 2% for the employer, nothing else.
5. Each branch is rounded to the halala and summed. The employee share is the payslip deduction; gross pay plus the employer share is the total employer cost.

On the occupational hazards rate: Article 29 of the Social Insurance Law sets it at 2% of the contributory wage, borne by the employer. The GOSI Employer FAQs describe the employer's share as 9% for annuities and 2% for occupational hazards, and PwC gives 2% for non-Saudi employees, so this calculator uses 2%. The FAQs also state that the branch covers all workers regardless of nationality.

Worked examples

All four use a basic wage of SAR 10,000 and a housing allowance of SAR 2,500, a contributory wage of SAR 12,500, except the last, which shows the ceiling.

In the first case the employer's total cost for the month is SAR 12,500 plus SAR 1,468.75, or SAR 13,968.75, and the employee's pay after the GOSI deduction is SAR 11,281.25 before any other payslip item.

Assumptions and exclusions

• Monthly figures only. Partial months, joiners and leavers are not pro-rated.
• The new-entrant toggle means no contribution history before 3 July 2024. A hire date after that with earlier contributions does not qualify.
• The payroll month drives the new-law step by whole months since July 2024. A month before July 2024 is treated as the first block.
• SANED is applied to the same floored and capped base as annuities. Occupational hazards uses its own SAR 400 floor. A floor is applied only where the branch applies, so a non-Saudi employee is subject to the SAR 400 floor and never to the SAR 1,500 annuities floor.
• A zero wage returns zero contributions rather than the floor amounts.
• Voluntary contributions, arrears, late-payment penalties, GOSI registration status and the retirement-age rules of the new law are outside the tool. No payslip item other than the employee's GOSI share is deducted.

How Axion People applies GOSI in the payroll run and the ledger

GOSI is a standard part of the People box. In a payroll run, Axion People builds the contributory wage from the basic and housing components of each employee's salary structure, applies the SAR 45,000 ceiling, and uses the schedule that matches the employee's nationality and whether they are an existing or a new-law contributor, with the new-law step resolved from the run date. The employee share is deducted in the payroll run; the employer share is passed to Finance as a GOSI payable, so the month-end liability is visible in the ledger before it is paid. Axion runs in Arabic and English.

For the wider set of rules, including WPS deadlines and end-of-service awards, read the GCC payroll compliance guide for 2026. If you are comparing systems, the buyer's guide for UAE and Saudi companies covers what to check in a payroll module. Boxes are priced separately, with unlimited users on every one.

Related calculators

• Saudi end-of-service award calculator: the half-month and full-month award under the Labour Law, with the resignation reductions.
• UAE gratuity calculator: 21 and 30 days of basic wage per year of service, capped at two years.
• All Axion payroll and tax tools.

Frequently asked questions

Is GOSI calculated on basic salary or total salary?

Neither exactly. GOSI defines the contributory wage as the basic wage plus the housing allowance (paid in cash, or housing in kind valued at two months' basic). Commissions and sales or profit percentages are treated as basic wage. Transport, phone and other allowances are outside the base, although they still count in gross pay.

What is the GOSI percentage for expats in 2026?

Non-Saudi employees are covered by the occupational hazards branch only: 2% of the contributory wage, paid by the employer, with no deduction from the employee. The SAR 45,000 monthly ceiling applies.

Do the new-law rates apply to my existing Saudi employees?

No. The Social Insurance Law of 2 July 2024 applies only to contributors with no contribution periods before 3 July 2024 under the Civil Pension Law or the earlier Social Insurance Law. Anyone with earlier history stays on the existing schedule of 9.75% employee and 11.75% employer. The test is contribution history, not hire date, so a rejoiner who contributed before July 2024 is not a new-law contributor.

What is the GOSI ceiling and is there a minimum wage for contributions?

The contributory wage is capped at SAR 45,000 a month. At the bottom, the annuities branch uses a minimum of SAR 1,500 and the occupational hazards branch a minimum of SAR 400, so a lower wage is raised to those floors before the rates are applied.

What are the GOSI rates from July 2026 for first-time contributors?

From July 2026 the annuities rate for new-law contributors is 20% of the contributory wage, 10% per side. With SANED at 0.75% each and occupational hazards at 2% for the employer, the combined rate is 10.75% for the employee and 12.75% for the employer. It rises again in July 2027 (10.5% per side) and July 2028 (11% per side).

Does the calculator show net salary?

It shows pay after the employee's GOSI share only. It does not model loans, advances, absence deductions or any other payslip item, and it does not pro-rate partial months.

Sources

All checked on 4 September 2026.

• GOSI, Employer FAQs (contribution rates, contributory wage, floors and ceiling)
• GOSI news: SANED contribution reduced to 1.5%, split 0.75% and 0.75%, from 1 January 2022
• PwC Worldwide Tax Summaries, Saudi Arabia, Other taxes (last reviewed 29 July 2026)
• Social Insurance Law, Royal Decree M/273 of 2 July 2024, official translation hosted by MISA (PDF): decree clauses Second and Third for scope and the step schedule, Article 15 (annuities), Article 29 (occupational hazards 2%), Article 63 (entry into force)
• Saudi Compliance Institute, 26 May 2026: the July 2026 GOSI rate increase for new-system employees (10.75% employee, 12.75% employer)