This salary calculator is built on social insurance contributions in Saudi Arabia. Enter the basic salary, housing allowance and other allowances, choose the nationality and the GOSI system, and you see the employee's GOSI deduction and net salary, the employer's contribution on top of the salary and the total monthly cost of the role. The bar under the result splits that cost into what reaches the employee and what goes to GOSI from each side. Advanced mode lets you pick the payroll month, add other deductions and build a payroll for several employees that downloads as an Excel file.
How to calculate net salary after the GOSI deduction
Net salary starts from gross pay, meaning basic salary plus every allowance, less the employee's social insurance share and any other deductions. The employee share is worked out on the contributory wage, which is basic salary plus housing allowance capped at SAR 45,000, not on gross pay.
Base = min(Basic + Housing, 45,000) · Net = Gross − Base × employee rate
What percentage of salary goes to GOSI
Contributions fall into three branches: annuities (the pension), SANED (unemployment insurance) and occupational hazards. The first two apply to citizens only; the third applies to everyone and is paid by the employer alone.
| Branch | Employee | Employer |
|---|---|---|
| Annuities, citizen contributing before 3 July 2024 | 9% | 9% |
| Annuities, citizen first joining after 3 July 2024 | From 9%, rising 0.5 a year to 11% | Same as the employee |
| SANED, citizen | 0.75% | 0.75% |
| Occupational hazards, citizens and expatriates | None | 2% |
| Total for a citizen on the previous system | 9.75% | 11.75% |
| Total for an expatriate | None | 2% |
Sources: the SANED rate published by GOSI, and Articles 8 and 29 of the Social Insurance Law. Rates are reviewed periodically, so confirm them with the General Organization for Social Insurance before running an official payroll.
The new Social Insurance Law and its rising rate
The new Social Insurance Law raises the annuity contribution in steps to 22% of the contributory wage, split equally between employer and employee. It starts at 18% for the first twelve months after the law took effect, then rises by one full point a year, half a point on each side. The schedule covers people who first joined GOSI after the law came into force in July 2024; those who were already contributing stay at 9%.
| Payroll period | Annuities, each side | Employee total with SANED |
|---|---|---|
| July 2024 to June 2025 | 9% | 9.75% |
| July 2025 to June 2026 | 9.5% | 10.25% |
| July 2026 to June 2027 | 10% | 10.75% |
| July 2027 to June 2028 | 10.5% | 11.25% |
| From July 2028 | 11% | 11.75% |
The GOSI calculator picks the rate from the payroll month, which is the current month by default; change it in advanced mode to work out a past or future payroll.
Salary with allowances
Every allowance is part of the gross pay the employee receives, but the contribution is charged on basic salary and housing only. Raising the transport allowance therefore leaves the GOSI deduction unchanged, while any rise in basic or housing increases it. If housing is provided in kind rather than in cash, its value counts toward the contributory wage as the company registers it with GOSI, so enter that value in the housing field.
Salary of SAR 4,000: how much does GOSI take
With a basic salary of SAR 4,000, no housing allowance and a citizen on the previous system, the deduction is 4,000 × 9.75% = 390.00 and net pay SAR 3,610.00. Add housing of 1,000 and the contributory wage becomes 5,000, with a deduction of 487.50. An expatriate on either package has nothing deducted.
The total cost of an employee to the company
An employee's monthly cost to the employer is gross pay plus the employer contribution. For a citizen on the previous system with a contributory wage of SAR 10,000, the company pays 1,175 on top of the salary each month, or 14,100 a year. The end of service award also builds up every month and is booked as a provision; the end of service calculator works it out. For a hiring budget, add residence permit and visa fees and medical insurance where they apply; they sit outside this calculator.
Booking payroll and GOSI in the ledger
Once the payroll is worked out, the monthly entry has three sides: salaries expense at gross, GOSI expense at the employer share, and against them a liability to employees for net pay and a liability to GOSI for both shares together. For Example 1: Dr Salaries expense 10,800 and Dr GOSI expense 1,175, Cr Salaries payable 9,825 and Cr GOSI payable 2,150.
Download the payroll as an Excel file from advanced mode: the contributory wage, deduction, net pay and employer share are formulas that read the rates from the Rates sheet, so a change in a rate is one cell to edit.
Common payroll and GOSI mistakes
- Calculating the deduction on gross pay including transport, which overstates it.
- Deducting 9.75% from an expatriate's salary, when nothing should be deducted.
- Applying the new-system rate to someone who has contributed for years, or the reverse.
- Forgetting the cap when basic plus housing exceeds SAR 45,000.
- Leaving out the employer share when costing a role, which understates the cost of a citizen by about 12% of the contributory wage.
What to do with the result
Download the result with the Download PDF button to attach to a job offer or an employee file, or copy it with Copy result. If you are preparing this month's payroll, switch on advanced mode, add your employees and download the sheet to finish in your own file.
When the payroll runs to dozens of lines every month
One salary takes a minute to check. A payroll that mixes citizens on two GOSI systems with expatriates, plus raises, absences and advances, then the ledger entry and paying GOSI on time, needs employee files, payroll and accounts in one place, or the same figure ends up typed three times. At Microtec we build accounting software (ERP) for companies in the Kingdom in which human resources is part of the same system as finance, sales, purchasing and inventory. Run one month of your payroll through it.