What Is GOSI?

GOSI — the General Organization for Social Insurance — is Saudi Arabia's mandatory social insurance system. It collects monthly contributions from employers and employees to fund retirement pensions, occupational hazard coverage, and (for Saudi nationals) unemployment protection under the Saned programme.

If you work in the Kingdom, GOSI affects your payslip every month. The deduction comes out of your basic salary automatically — but the rate depends entirely on whether you are a Saudi national or an expatriate.

Contribution Rates for 2026

GOSI contributions are calculated as a percentage of your basic salary only — housing allowances, transport, and other allowances are excluded from the calculation base.

How to Calculate Your GOSI Deduction

The formula is straightforward — but it only applies to basic salary, not total package.

If your package includes a housing allowance of SAR 2,000 and transport of SAR 500, those amounts are excluded — GOSI is only calculated on the SAR 10,000 basic.

What Does GOSI Cover?

For Saudi Nationals — Three Branches

Branch	What It Covers	Who Contributes
Annuities	Retirement pension, disability pension, death benefit for dependants	Employee + Employer
Occupational Hazards	Work injuries, occupational diseases, death in service	Employer only
Saned	Unemployment benefit (up to 12 months) if involuntarily laid off	Employee + Employer

For Expatriates — One Branch Only

Expatriates are covered only under the Occupational Hazards branch. This means:

• Coverage for work-related injuries and occupational diseases
• Compensation for permanent disability arising from work accidents
• Death benefit paid to dependants if death occurs in service
• No retirement pension
• No Saned unemployment benefit

The GOSI Salary Ceiling

GOSI contributions are capped at a maximum salary of SAR 45,000 per month for the annuities branch. This means even if your basic salary exceeds SAR 45,000, contributions are calculated as if the salary is SAR 45,000.

For the occupational hazards branch, the ceiling is SAR 45,000 as well.

When Does GOSI Start?

Employers must register new employees with GOSI within 10 days of their start date. First-time registrants (employees who have never been registered before) are enrolled on a different contribution scale that transitions to the full rate over time.

New registrant contribution schedule (Saudi nationals):

Registration Period	Employee Rate	Employer Rate
Years 1–5	9%	9% + 2% hazards + 1% Saned
Years 5+ (established)	10% (9% + 1% Saned)	12% total

In practice, the rates are applied from day one for most employees. The distinction mainly affects those entering the Saudi workforce for the first time.

Frequently Asked Questions

Does GOSI apply to part-time workers in Saudi Arabia?

Yes — part-time employees are subject to GOSI on a pro-rated basis. Contributions are calculated on their actual salary, with the same percentage rates applied.

Can expatriates claim anything from GOSI when they leave Saudi Arabia?

No — expatriates contribute nothing themselves and receive no refund or benefit upon departure. The 2% occupational hazards contribution is an employer-only cost and is not refundable to the employee under any circumstance.

What happens to a Saudi national's GOSI if they resign?

Contributions accumulate throughout their working life. Upon retirement (age 60 for men, 55 for women with at least 10 years of contributions), they receive a monthly pension. If they resign before eligibility, the contributions remain in the system and the pension is calculated based on total years contributed when they eventually retire.

Is GOSI the same as the end-of-service gratuity (EOSB)?

No — they are completely separate. EOSB (end-of-service benefit) is a one-time lump sum paid by the employer when employment ends, calculated based on years of service and final basic salary. GOSI is an ongoing monthly insurance contribution that funds pension and hazard coverage. Both apply simultaneously.

Does the GOSI salary ceiling affect my pension calculation?

Yes. Your eventual pension is calculated based on your contribution history, which is capped at SAR 45,000/month. Earnings above this threshold do not increase your future pension entitlement.

Quick Reference Summary

Detail	Saudi Nationals	Expatriates
Employee contribution	10% of basic salary	0%
Employer contribution	12% of basic salary	2% of basic salary
Salary ceiling	SAR 45,000/month	SAR 45,000/month
Retirement pension	✅ Yes	❌ No
Occupational hazards	✅ Yes	✅ Yes
Saned unemployment	✅ Yes	❌ No
Calculation base	Basic salary only	Basic salary only