In one sentenceThe wage on which social insurance contributions are calculated. It is made up of the basic salary and the housing allowance, with a minimum of 1,500 SAR and a maximum of 45,000 SAR.
Simply put
The contributory wage is not the whole salary: you add up the basic and the housing allowance only, then apply the GOSI rates to it.
If the total is below 1,500 SAR, the contribution is calculated on 1,500. If it exceeds 45,000 SAR, it stops at 45,000, so the contribution does not increase beyond that.
Worked example
A manager at a trading company has a basic of 50,000 SAR and a housing allowance of 10,000 SAR.
Basic + housing allowance50,000 + 10,000 = 60,000
Maximum contributory wage45,000
Employer's annuities share 9% × 45,0004,050
Contributory wage applied45,000 SAR
Formula: Contributory wage = basic + housing allowance, within 1,500 to 45,000 SAR
Don't confuse it with
Total wageThe total wage includes all fixed allowances, while the contributory wage is limited to the basic and housing.