01
No income tax
Saudi Arabia levies no personal income tax on salaries. The employer cost sits in social insurance and end-of-service, not in payroll tax.
GOSI & employee cost calculator
Saudi Arabia GOSI &
employee cost calculator
Calculate GOSI and the full cost of hiring in Saudi Arabia. GOSI differs sharply
for Saudi and non-Saudi staff, with end-of-service on top. Free to use.
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Total annual cost of employment
265,930SAR
10.8%
employer cost on top
- Gross annual salarySAR 240,000
- GOSI social insuranceSAR 4,080
- End-of-service benefitSAR 10,000
- Iqama (1 year)SAR 11,850
- Iqama transferSAR 2,000
- Saudization fee (SAR 1,500 a month)SAR 18,000
- Entry visa (from outside KSA)SAR 9,600
- Total annual cost of employmentSAR 265,930
Estimate in SAR. Contributions are on basic pay (plus housing for GOSI); we assume 85% of gross. Iqama and entry-visa figures are estimates you can adjust under Advanced; non-Saudi hires also carry a Saudization fee of SAR 1,500 a month, and hires already in KSA an Iqama transfer fee. Statutory rates verified to 2026; confirm before payroll.
How employer costs work in Saudi Arabia
Salary is one line. The rest is statutory, and it varies with who you employ. Here is what shapes the true cost.
02
GOSI: Saudi vs non-Saudi
This is the big one. For a Saudi national the employer pays about 12.75% GOSI (pension, occupational hazards and SANED). For a non-Saudi the employer pays just 2%, for occupational hazards only.
03
End-of-service benefit
On top of GOSI, employers accrue end-of-service: 15 days of wage per year for the first five years, then 30 days per year, calculated on the full wage and not capped.
04
The SAR 45,000 cap
GOSI is charged on basic pay plus housing, capped at SAR 45,000 a month. End-of-service has no such cap, so it dominates the cost of senior hires.
A worked example
A team member on SAR 15,000 a month, with basic plus housing at 85% of gross (SAR 12,750, under the cap).
| Employer cost per year |  Saudi national |  Non-Saudi |
|---|---|---|
 GOSI social insurance | SAR 19,508 | SAR 3,060 |
 End-of-service benefit | SAR 7,500 | SAR 7,500 |
| Total on top of salary | SAR 27,008 · 15.0% | SAR 10,560 · 5.9% |
Other obligations when you employ
in Saudi Arabia
Beyond salary, GOSI and end-of-service, these shape the real cost and compliance picture.
WPS and
Mudad
Salaries must be paid and filed through the Mudad platform under the Wage Protection System.
Saudisation
(Nitaqat)
Quotas apply by sector and size. Falling below your band restricts visa issuance and government services.
Qiwa contracts
and permits
Employment contracts and work permits are managed on the Qiwa platform.
Expat levies,
visa and Iqama
Employers pay monthly labour fees per expatriate worker, plus dependent fees, on top of block visa, work permit and annual Iqama costs.
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FAQs
Got Questions? Find Answers Here
How much does it cost to employ someone in Saudi Arabia?
It depends heavily on nationality. For a Saudi national, budget roughly 15 to 16% on top of salary: about 12.75% GOSI plus end-of-service accrual. For a non-Saudi, it is far lower, about 2% GOSI plus end-of-service. Use the calculator above for your salary.
What is the GOSI rate for 2026?
For Saudi nationals the employer rate is 12.75% under the post-July-2024 system, which the calculator uses by default; those registered before July 2024 remain on 11.75%. Non-Saudis are 2% employer-only. GOSI is capped at SAR 45,000 of monthly basic-plus-housing.
Does the calculator include end-of-service?
Yes. It accrues end-of-service at 15 days of wage per year for the first five years. End-of-service is calculated on the full wage and is not capped, unlike GOSI.
What salary counts toward GOSI?
Basic pay plus housing allowance, capped at SAR 45,000 a month. Transport, commission and overtime are excluded from the contributory wage.
What is Nitaqat (Saudisation)?
A programme that sets Saudi-hiring quotas by sector and company size. Falling below your band restricts visa issuance and access to government services.
Are there extra costs for employing expats in Saudi Arabia?
Yes. Beyond the 2% GOSI, employers pay monthly labour fees per expatriate worker and dependent fees, plus block visa, work permit and annual Iqama costs. Confirm current rates.
Do the economic zones or NEOM change employer costs?
No, not for GOSI or end-of-service. Unlike the UAE’s DIFC and ADGM, Saudi economic zones do not run a separate employment law, so social insurance and end-of-service apply Kingdom-wide. What can differ is Saudisation (Nitaqat) treatment, and NEOM is still developing its own rules, so verify quota obligations by zone.
Does resignation change end-of-service in Saudi Arabia?
Yes. On employer termination the award is paid in full. On resignation it is scaled by tenure: one-third of the award after two to five years, two-thirds after five to ten years, and the full amount after ten years. The calculator shows the full annual accrual; the payout depends on how employment ends.
