What does this tool calculate?
It calculates the net salary the employee receives: gross salary (basic, housing and allowances) minus the employee's share of social insurance (GOSI). The share is calculated on the contributory wage = basic + housing allowance, between the minimum and maximum contribution limits; other allowances are not included in it.
- Saudi: the annuities (pension) branch (9% for those who joined before 3 July 2024, and a graduated rate under the new law) and SANED 0.75%.
- Non-Saudi: nothing is deducted; the employer pays occupational hazards.
Example
A Saudi employee who joined before 2024, with basic salary 7,000, housing 1,750 and other allowances 700. Gross is 9,450, the contributory wage is 7,000 + 1,750 = 8,750, and the employee's share is 8,750 × (9% + 0.75%) = 853.13, so the net is about 8,596.87 SAR.
Frequently asked questions
Is GOSI deducted from the transport allowance?
No. The contributory wage is the basic salary plus housing allowance only; other allowances are not included in it.
And what does the employee cost the business?
Use the true employee cost tool: it adds the employer's share, the end-of-service provision, leave and fees.
Content last reviewed: 2026-11-03