Net Salary and GOSI Contributions in Saudi Arabia (2026)
What does net salary mean?
Net salary is the amount remaining after the employee’s applicable deductions are taken from the salary payable. The result depends on nationality, the employee’s GOSI coverage category, the wage recorded for contributions, and any other deductions or obligations that apply. One percentage does not fit every employee.
First, identify the correct GOSI category
Different groups remain under different social-insurance arrangements. Verify the category in your General Organization for Social Insurance (GOSI) record instead of relying only on the date you moved to a new employer.
| Illustrative category | Employee contribution | Employer contribution | Important note |
|---|---|---|---|
| Saudi employee not covered by the new system | 9.75%: annuities 9% + SANED 0.75% | 11.75%: annuities 9% + SANED 0.75% + occupational hazards 2% | Rates depend on the category recorded for the worker. |
| Saudi employee covered by the new system — from 1 July 2026 | 10.75%: annuities 10% + SANED 0.75% | 12.75%: annuities 10% + SANED 0.75% + occupational hazards 2% | The annuities rate rises gradually; these figures apply only to the covered group. |
| Non-Saudi employee, general case | Usually 0% employee deduction for these GOSI branches | 2% occupational hazards | Special cases, including GCC nationals under extension-of-protection arrangements, should be checked against the individual record. |
GOSI explains that the new system covers new entrants who had no prior contribution periods under the Civil Retirement or Social Insurance systems before the new system took effect on 3 July 2024. The gradual annuities-rate increase began on 1 July 2025 and adds half a percentage point each year. Accordingly, the annuities share is 10% for both the employee and employer from 1 July 2026 for employees covered by the new system; SANED and occupational-hazards contributions are separate.
What wage is used for GOSI contributions?
Not every amount shown on a payslip necessarily enters the contributory wage in the same way. GOSI lists basic wage and certain equivalent components such as commissions or percentages of sales and profits under the applicable rules, cash housing allowance, and specific valuation rules for housing provided in kind. The published monthly maximum contributory wage for the new system is SAR 45,000.
- Check the wage components and housing allowance actually recorded in your GOSI record.
- Variable-pay elements can be subject to specific rules; do not decide based on the label alone.
- The example below uses basic wage plus recorded housing allowance as its contributory-wage basis. If your official record shows a different basis, use that record for a more accurate calculation.
- Do not leave the calculator’s housing field at an assumed value unless it matches your actual contractual allowance.
Worked example
Assume a basic monthly wage of SAR 6,000, an actual housing allowance of SAR 1,500, and a transport allowance of SAR 500. Gross salary in this example is SAR 8,000, and the contributory-wage basis used is SAR 7,500 (basic plus housing), below the SAR 45,000 ceiling.
Saudi employee not covered by the new system: SAR 7,500 × 9.75% = SAR 731.25 employee deduction. Estimated net after GOSI alone = SAR 8,000 − SAR 731.25 = SAR 7,268.75.
Saudi employee covered by the new system in July 2026: SAR 7,500 × 10.75% = SAR 806.25. Estimated net after GOSI alone = SAR 8,000 − SAR 806.25 = SAR 7,193.75.
Non-Saudi employee in the general case: employee GOSI deduction in this example = SAR 0, while the employer’s occupational-hazards contribution is SAR 7,500 × 2% = SAR 150. Other deductions may still apply depending on the actual case and contract.
These figures are illustrative, not a final estimate for any particular employee. They assume that the contributory-wage basis is the recorded basic wage plus housing allowance and do not include other deductions or differences in contribution records.
Employee share versus employer share
The employer’s contribution is not an additional deduction from the employee’s take-home pay. Net salary calculations subtract the employee’s applicable share only, then account for any other deductions relevant to the employee. A payslip may display both shares, so make sure the employee and employer amounts are clearly distinguished.
Estimating room for a finance instalment
Net salary and existing obligations can help with a monthly budget, but a simple calculation cannot guarantee financing approval. Saudi Central Bank responsible-lending rules use different ratios depending on income, existing obligations and the financing product. The website calculator shows an initial estimate only; a lender makes its own assessment under the applicable rules.
- Calculate net salary using the correct GOSI category.
- Add up existing instalments and monthly obligations before estimating any room for an additional instalment.
- Confirm the current limits with your lender for the specific financing product.
Frequently asked questions
Does every Saudi employee pay 10.75% in 2026?
No. The 10.75% figure applies to employees covered by the new system from July 2026 and consists of 10% annuities plus 0.75% SANED. Employees not covered by the new system continue under the rates applicable to their category, including the 9.75% employee share shown above for the general case.
Is the employer share deducted from my salary?
No. The employer’s share is the employer’s responsibility and should not be added to the employee’s deduction when calculating net pay.
Why might my result differ from the example?
The recorded contributory wage, coverage category, housing allowance, variable-pay elements and other deductions may differ. Check the GOSI record and payslip.
Does the finance amount shown by the calculator guarantee approval?
No. It is an initial budgeting estimate, not an eligibility decision or financing approval. The lender applies the relevant rules and its own assessment.
Use the KSA Tools salary and GOSI calculator for an initial estimate, entering your actual salary details.
If you work overtime, see our guide to calculating overtime pay in Saudi Arabia.
Net Salary and GOSI Calculator · GOSI guidance on the new system
Official sources
This is general educational guidance, not legal advice or a financing eligibility decision. Rates and rules can change, and results vary with GOSI records, wage components and existing obligations. Verify your record with GOSI and consult your lender for an applicable financing limit.