Understanding GOSI contributions in Saudi Arabia
What GOSI is, who's covered, how employer and employee contributions split, and what recent reforms changed — for payroll teams.
The General Organization for Social Insurance (GOSI) runs Saudi Arabia’s social-insurance scheme — pensions, occupational-hazard cover, and unemployment support (SANED). If you run payroll in the Kingdom, GOSI contributions are a monthly obligation you can’t get wrong.
Who’s covered
- Saudi employees are covered for annuities (pension), occupational hazards, and SANED.
- Non-Saudi employees are generally covered for occupational hazards only.
How contributions split
For Saudi employees, the total contribution is shared between employer and employee (covering annuities + SANED), while occupational-hazard cover is paid by the employer. For non-Saudis, the employer pays the occupational-hazard contribution. Contributions are calculated on a contributory wage (basic + housing, within floor/ceiling limits).
Saudi Arabia has been phasing in reforms that adjust contribution rates for new entrants over several years. Exact percentages and the contributory-wage rules depend on the employee’s category and start date — always confirm current rates with GOSI.
The monthly cycle
- Keep each employee’s GOSI registration and contributory wage current.
- Calculate contributions in the payroll run.
- Generate and upload the GOSI file, and pay by the deadline.
- Reconcile GOSI payable in the ledger.
Where it goes wrong
- Stale wage data — a raise not reflected in the contributory wage understates contributions.
- New-joiner/leaver timing — mid-month changes need careful proration.
- Manual files — re-keying GOSI data invites errors and late submissions.