GOSI Contributions Explained: What Saudi and Expat Employees Pay

· 1 min read · Employment & Gratuity

GOSI (the General Organization for Social Insurance) is Saudi Arabia's social insurance scheme, and the rules are very different depending on whether you're a Saudi national or an expat. Here's a plain breakdown of who pays what.

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For Saudi nationals

Saudi employees are covered under both the Annuities branch (retirement, disability, death) and the SANED unemployment insurance branch:

  • Employee pays roughly 9.75% of GOSI-subject salary (9% annuities + 0.75% SANED)
  • Employer pays roughly 11.75% (9% annuities + 2% occupational hazards + 0.75% SANED)

That's about 21.5% combined, deducted/contributed monthly.

For expat (non-Saudi) employees

Expats are only covered under the Occupational Hazards branch — there's no retirement or unemployment contribution for non-Saudis.

  • Employee pays: nothing
  • Employer pays: 2% of GOSI-subject salary

This means an expat's payslip shouldn't show a GOSI deduction at all — if it does, it's worth double-checking with HR.

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What counts as "GOSI-subject salary"?

Typically basic salary plus housing allowance, subject to a ceiling set by GOSI that's updated periodically. Commissions, one-off bonuses and most other allowances are usually excluded — check your latest GOSI circular for the current ceiling.

Frequently asked questions

Do expats pay into GOSI in Saudi Arabia?
No employee-side contribution for expats. Only the employer pays, and only into the Occupational Hazards branch (2%).
What is SANED?
SANED is Saudi Arabia's unemployment insurance branch under GOSI, funded by a combined 1.5% (0.75% employee + 0.75% employer) for Saudi nationals only.
Does GOSI replace end-of-service gratuity?
No — GOSI is a separate social insurance system. Saudi employees still receive end-of-service gratuity from their employer on top of GOSI benefits.

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