In one sentenceA monthly amount paid to the employee for commuting to work, unless the business provides transport itself. It is added to the total wage.
Simply put
The transport allowance is usually a fixed amount every month written in the contract.
Be careful when calculating: it is part of the total wage on which some entitlements are calculated, but it is not included in the GOSI contributory wage, which is limited to the basic and the housing allowance.
Example
An employee at an auto parts store has a basic of 5,000 SAR and a transport allowance of 500 SAR: his total wage increases by 500 SAR, while the GOSI contribution is calculated on the basic and housing allowance only and does not change with this allowance.
Don't confuse it with
Housing allowanceThe housing allowance is included in the GOSI contributory wage, while the transport allowance is not.