True employee cost and GOSI

What does this tool calculate?

The salary written in the contract is not everything the business pays. On top of it come the employer's share of GOSI contributions, the end-of-service benefit provision that builds up every month, the cost of annual leave, and government fees and medical insurance for non-Saudis. The tool adds them up into a true monthly and annual cost, and shows the employee's net pay after deducting their GOSI share.

Rates used and where they come from

• Annuities for Saudis: 9% on the employee and 9% on the employer for those who joined before 3 July 2024. Anyone with no contributions before that date is covered by the new law: the rate starts at 9% and rises by 0.5% every 1 July from 2025 until it reaches 11% for each party.
• Occupational hazards: 2% on the employer, for all workers, Saudi and non-Saudi.
• SANED (unemployment insurance): 0.75% on the employee and 0.75% on the employer, for Saudis.
• Contributory wage: basic salary plus housing allowance, with a minimum of 1,500 SAR for Saudis (400 for non-Saudis) and a maximum of 45,000 SAR.

All rates come from the pages of the General Organization for Social Insurance (GOSI) and the Ministry of Human Resources listed below the tool. They appear in the tool under “Rates used”, and you can change them if you have a special case.

The formulas

• Employer's GOSI share = contributory wage × (annuities + occupational hazards + SANED); for non-Saudis, contributory wage × occupational hazards only.
• Employee's share = contributory wage × (annuities + SANED), deducted from their salary.
• Monthly end-of-service provision = total salary × half a month per year (in the first five years) or a full month (after that) ÷ 12.
• Monthly leave cost = total salary ÷ 30 × leave days (21 days, or 30 after five years) ÷ 12.
• Monthly cost = total salary + employer's GOSI share + end of service + leave + fees.

Worked example

A Saudi employee who joined GOSI before 3 July 2024, with a basic salary of 8,000 SAR, a housing allowance of 2,000, other allowances of 1,000, and 3 years of service:

• Contributory wage = 8,000 + 2,000 = 10,000.00 SAR.
• Employer's share = 10,000 × (9% + 2% + 0.75%) = 1,175.00 SAR, and employee's share = 10,000 × (9% + 0.75%) = 975.00 SAR, so their net salary is 10,025.00 SAR.
• End of service = 11,000 × 0.5 ÷ 12 = 458.33 SAR, and leave = 11,000 ÷ 30 × 21 ÷ 12 = 641.67 SAR per month.
• Monthly cost = 13,275.00 SAR, that is 159,300.00 SAR a year, and 20.68% higher than the total salary.

If the same employee were covered by the new law and the calculation date were October 2026, the annuities rate would be 10%, so the employer's share would become 1,275.00 SAR and the monthly cost 13,375.00 SAR.

Limits of the tool

The end-of-service provision assumes leaving for a reason other than resignation; resignation reduces the benefit according to years of service (calculate it in the end-of-service tool). Government fees for non-Saudis (the expat levy and iqama fees) are entered by you from your business's account, because they vary from case to case. The final reference is the official text and your business's account with the competent authority.

Frequently asked questions

Content last reviewed: 2026-10-28