A payroll is the monthly sheet that lists, for each employee, basic salary, allowances, overtime, deductions and social insurance (GOSI), and ends with the net pay transferred to each account. Enter the figures in the payroll template above and choose each employee's category: GOSI, net pay and employer cost are calculated. Download the table as Excel, open Payroll for approval to print it for signing, and Payroll journal entry to record it in the books.
Net pay = basic + allowances + overtime − deductions − the employee's GOSI share. In the eight-employee example: gross pay SAR 60,375.00, net pay transferred SAR 55,625.00, and employer cost SAR 65,357.50.
How to use the payroll template
- Type each employee's name and choose a category: Saudi, Non-Saudi or Domestic worker. The category sets the GOSI rates.
- Enter basic salary, housing, transport, other allowances and overtime as they appear in the contract and this month's overtime approval.
- Record approved deductions only: documented absence, a loan instalment or a penalty backed by a written decision.
- Check the month's receipt above the table, then print Payroll for approval for signing and open the journal entry.
Advanced mode shows the GOSI rates and the maximum contributory wage for editing, plus columns for employee number, job title and signature.
What a payroll is and what it contains
A payroll is the table of employees' salaries for one month. Management approves it before payment, and both the bank transfer and the payroll journal entry are built from it. The word also covers the whole process of preparing salaries. Its columns fall into four groups: earnings (basic, allowances and overtime), deductions (penalties, advances and the employee's GOSI share), net pay and employer cost. A simple example from the sheet: Fahad Al Otaibi has a basic salary of 9,000, housing of 2,250 and transport of 900, so his gross pay is SAR 12,150.00; SAR 1,096.88 is deducted for GOSI, leaving net pay of SAR 11,053.12.
| Column | What you enter or how it is calculated |
|---|---|
| Basic and housing | From the contract. Together they are the contributory wage for GOSI in this template. |
| Transport and other allowances | Phone, nature-of-work or food allowances. They are not part of the contribution base. |
| Overtime and deductions | The amount for approved overtime hours, and absence, a loan instalment or a penalty. |
| GOSI (employee and employer) | For citizens: annuities and SANED in two shares, plus occupational hazards for the employer. For the Non-Saudi category: occupational hazards for the employer only. |
| Net pay and employer cost | Net pay is what the employee receives; employer cost is gross pay plus the employer's GOSI share. |
How GOSI is calculated on the payroll
The template takes basic + housing as the contributory wage, capped at the maximum in Settings, and multiplies it by the category's rates. With the pre-filled rates, Fahad's contributory wage is SAR 11,250: his share is 9% annuities + 0.75% SANED = SAR 1,096.88, and the employer pays 9% + 0.75% + 2% occupational hazards = SAR 1,321.88 for him. Mohammed Iqbal, an expatriate, has a contributory wage of SAR 5,625; nothing is deducted from his pay, and the employer pays only 2% = SAR 112.50.
The rates in Settings are reference values that need checking. The annuities rate for citizens who first registered after July 2024 rises in steps over several years, so a newer employee's rate may differ from a longer-serving colleague's. Check each employee's rate and the wage cap in the company's GOSI account before approving the payroll.
When to submit payroll and how to prepare it
A business covered by the Wage Protection System uploads its wage file every month and pays salaries through the bank on the pay date set in the contracts. The official deadline for the wage file, and the cut-off times banks apply to transfer files, are set by the Ministry of Human Resources and Social Development, the Mudad platform and your bank, so check them before scheduling payment. Steps before you submit:
- Close attendance, overtime and leave for the month, and get deduction decisions in writing.
- Update the payroll for joiners and leavers, and match wages against the documented contracts.
- Check GOSI for each employee and any highlighted row where net pay fell below half of gross.
- Approve the payroll with signatures, then prepare the wage protection file and the bank transfer file from the same figures.
A transferred wage that differs from the recorded wage, or a late payment, is among the most common wage protection violations; the wage protection file has its own template.
Payroll for domestic workers and private drivers
Pick the Domestic workers or Private driver example on the payroll sheet. Domestic worker payroll is simpler than staff payroll: no GOSI is calculated for that category in this template, so net pay = wage + overtime − deductions. The driver in the example earns 2,000 with an allowance of 300 and overtime of 250, less a deduction of 100, so his net pay is SAR 2,450.00. The employer needs proof of every wage paid, by the worker's signature or a bank transfer, and domestic workers have an official route for paying and recording wages set by their own regulation, so check it. The payslip and the monthly salary receipt sheet the worker signs each have their own page.
Payroll journal entry
The Payroll journal entry tab builds the accrual entry from the payroll totals. On the debit side: salaries expense at total gross pay of SAR 60,375.00 and GOSI expense at the employer share of SAR 4,982.50. On the credit side: salaries payable of SAR 55,625.00, GOSI payable for both shares of SAR 8,882.50, and deductions of SAR 850.00. Both sides balance at SAR 65,357.50.
Payroll sheet template for Saudi Arabia
The Excel salary sheet keeps the formulas for gross pay, GOSI, net pay and cost, with a Settings sheet for the rates; change a rate there and every row updates. The blank file gives you the columns and formulas for forty employees, including the domestic worker and driver categories. The Payroll for approval tab downloads in Word to add your letterhead, or as a PDF for signing.
Common payroll mistakes
- Calculating GOSI on total gross pay instead of basic and housing.
- Deducting the employer's share from the employee's salary.
- Applying the older contributors' rate to a citizen who joined after July 2024 without checking.
- A deduction with no written decision, or one above the legal limit; the row turns red when net pay falls below half of gross.
- Transferring salaries before the net pay on the payroll matches the wages in employees' contracts.
Regulatory notes
Contribution rates and the maximum contributory wage come from the Social Insurance Law and the unemployment insurance scheme (SANED). They are editable in Settings because they change; the reference body is the General Organization for Social Insurance (GOSI). Limits on deductions from wages are in Article 92 of the Labor Law, overtime pay in Article 107 and payment of wages in Article 90; check the current text and the Wage Protection System deadlines with the Ministry of Human Resources and Social Development. Domestic workers fall under their own regulation, not the GOSI rules applied here.
When payroll is spread across attendance, loan and accounts files
Microtec accounting software covers sales, purchasing, inventory and finance and includes an HR module, so employee data and the accounts sit in one system for businesses in Saudi Arabia.
Frequently asked questions
What is the difference between payroll and a payslip?
The payroll is a table of every employee and their pay for the month, approved by management before payment. A payslip is one sheet for one employee explaining their earnings, deductions and net pay, written from their line on the payroll.
How is GOSI calculated on the payroll?
On basic + housing up to a cap, at the category's rates: for citizens, annuities and SANED in two shares plus occupational hazards for the employer; for expatriates, occupational hazards for the employer only. Fahad's example: SAR 1,096.88 from him and SAR 1,321.88 from the employer.
How does payroll relate to the wage protection file?
The wage protection file is built from the approved payroll: each employee's name, ID, basic wage, allowances, deductions and net pay transferred. Any difference shows up when they are matched, so approve the payroll first, then prepare the file.
Where should payroll be kept, and for how long?
Keep the approved payroll and the Excel file with proof of transfer for each month in your payroll records. The required retention period for wage records is set in the Labor Law's implementing regulations, so check it with the Ministry.
Is there a payroll template in Word?
Yes. The Payroll for approval tab downloads in Word with employees' names, categories, gross pay, deductions and net pay, plus boxes for prepared, reviewed and approved by.