GOSI Calculator: Contributions and the True Cost of a Job Offer in Saudi Arabia

The salary written on a job offer is not the full cost of hiring an employee in Saudi Arabia. For employers, mandatory GOSI contributions add another layer to the monthly employment cost, and overlooking them can lead to inaccurate hiring budgets and payroll forecasts.

A GOSI calculator helps HR and finance teams estimate these contributions and understand what a job offer will actually cost the business. The calculation can involve more than base salary alone, making it important to know which salary components are included and how employer contributions apply. This becomes especially important when budgeting for multiple hires, comparing compensation packages, or forecasting workforce costs across the year.

So, how do you calculate GOSI correctly, and how much does that SAR figure on an offer letter really cost your company each month? Let’s break it down.

Key Takeaways

• GOSI affects the true cost of every Saudi job offer. Employers should calculate the contribution alongside salary and housing allowance before approving an offer.
• The applicable rate depends on the employee. Saudi legacy contributors, new-system entrants, and non-Saudi employees follow different contribution structures.
• GOSI uses insurable wage, not total compensation. Insurable wage is basic salary plus housing allowance, subject to the applicable minimum and maximum limits.
• Previous contribution history matters. A Saudi employee’s hire date alone does not determine whether the new-system rate applies.
• GOSI should be part of offer approval. Checking the full employer cost before approval helps prevent budget surprises after an offer is issued.

How the GOSI Calculator Works: GOSI Rates Explained

GOSI is calculated as a percentage of an employee’s insurable wage, split between employee and employer, at rates that differ by nationality and by when the employee first joined the system. See what GOSI is for the full background on the system itself.

Group	Employee	Employer	Total
Saudi, legacy system (contributing before 3 Jul 2024)	9.75%	11.75%	21.5%
Saudi, new system (new entrants from 3 Jul 2024), from 1 Jul 2026	10.75%	12.75%	23.5%
Non-Saudi (expat)	0%	2%	2%

Rates cross-referenced against publicly available sources as of September 2026. Confirm current rates on gosi.gov.sa before relying on this table for payroll, since GOSI’s own rate schedule is the authoritative source.

Insurable Wage: What Counts and the SAR 45,000 Cap

The insurable wage used for GOSI calculations is basic salary plus housing allowance, not total compensation. Transport and other allowances are typically excluded. The insurable wage is subject to a floor of SAR 1,500 and a cap of SAR 45,000 per month, so contributions on higher earners are calculated against the capped figure, not the full salary.

Legacy vs New-System Contributors

The distinction that trips up most calculators is who actually qualifies for the new, higher rate schedule. The new system applies to new entrants, meaning Saudi nationals with no prior GOSI contribution history, not simply anyone hired on or after 3 July 2024. A Saudi employee who was already registered with GOSI before that date and later changes employers generally continues on the legacy rate. Confirming an incoming hire’s prior contribution status, not just their hire date, is the step that determines which row of the table applies.

Expat Employees: Occupational Hazards Only

Non-Saudi employees are covered only under the occupational hazards branch. The employer pays 2% of the insurable wage, with no deduction from the employee’s salary. This is a smaller and simpler calculation than the Saudi contributor tracks, but it still affects the total monthly cost of an expat hire and should be included in any offer-cost comparison across nationalities.

GOSI Rate Schedule to 2028 for New Contributors

New-system contributions are scheduled to step up incrementally through 2028, with the pension branch increasing on each 1 July. An employer budgeting a multi-year Saudization hiring plan should model the rate that will apply in the year the cost is actually incurred, not only the rate in effect on the hire date, since a new hire’s contribution rate rises with the schedule over their tenure. Those costs belong alongside your Saudization compliance plan for 2026 and the salary bands in your pay scale.

Using GOSI in Offer Approvals

GOSI cost is easy to leave out of an offer discussion because it doesn’t appear on the candidate-facing offer letter. For the employer, it is a real and predictable addition to the cost of every hire, and it belongs in the same review step as the base salary and allowances before an offer is approved.

For Saudi employers, GOSI can form part of that cost review. Calculating the applicable employer contribution before approval gives decision-makers a clearer picture of the total employment cost attached to an offer.

Final Thoughts: Make GOSI Part of Every Offer Decision

GOSI is more than a payroll calculation; it is part of the real cost of hiring. Building it into the offer approval process gives HR and finance teams a clearer view of employer cost before a commitment is made. For enterprise hiring teams, the goal is simple: calculate the cost, approve the right number, and keep the offer process traceable from decision to delivery.

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FAQs

Is GOSI calculated on basic salary only?

No. GOSI is calculated on the insurable wage, which is basic salary plus housing allowance, subject to a minimum and maximum monthly cap. Other allowances, such as transport, are typically excluded.

Do experienced Saudi hires pay the new GOSI rates?

Not automatically. The new, higher rate schedule applies to new entrants with no prior GOSI contributions. A Saudi employee who already contributed before joining a new employer generally stays on the legacy rate, not the new-entrant schedule.

How much GOSI does an employer pay for an expat?

For non-Saudi employees, GOSI applies only to the occupational hazards branch, currently at 2% paid entirely by the employer, with no employee-side deduction.

When are GOSI contributions due?

Employers remit GOSI contributions monthly through the GOSI portal, alongside payroll processing, and should confirm the current filing deadline directly on gosi.gov.sa rather than assuming a fixed date.

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