How GOSI is Calculated
General Organization of Social Insurance (GOSI) determines the contributions based on your monthly basic salary and housing allowance (not exceeding SAR 45,000). The 2025 contributions will be as shown here:
- Unemployment Insurance (Saned) → 1% paid by employer + 1% paid by employee
- Retirement Contributions →
- Saudis: 9% employer + 9% employee
- Expats: No employee retirement contribution; employer pays 2% for occupational hazard
- Occupational Hazards → 2% paid by employer only
Example Calculation
| Contribution Type | Employer Pays | Employee Pays | Total |
|---|---|---|---|
| Unemployment (1% + 1%) | 130 SAR | 130 SAR | 260 SAR |
| Retirement (9% + 9%) | 1,170 SAR | 1,170 SAR | 2,340 SAR |
| Occupational Hazards (2%) | 260 SAR | – | 260 SAR |
| Total Monthly GOSI | 1,560 SAR | 1,300 SAR | 2,860 SAR |
Benefits of GOSI Contributions in Saudi Arabia
Key Benefits for Employees
- Retirement Pension: Saudi employees build pension savings through their GOSI contributions, providing financial support after retirement.
- Unemployment Support: GOSI offers a Saned program that provides temporary income for Saudis who lose their jobs.
- Family Security: GOSI pays dependents in case of disability or death.
Key Benefits for Employers
- Regulatory Compliance: Secures compliance with Saudi labor law by businesses and prevents fines.
- Employee Retention & Trust: Providing GOSI helps to create confidence and loyalty among employees.
- Risk Management: Employer contributions cover against liabilities.
Saudis vs Expats
For Saudi Employees → Both employee and employer share contributions (retirement + unemployment). This ensures retirement pensions and unemployment benefits.
For Expat Employees → The employer mainly contributes (2% occupational hazards + unemployment). Expats usually don’t pay retirement contributions.
Saudi vs Expat GOSI Contributions
| Contribution Type | Saudi Employee (Employer Pays) | Saudi Employee (Employee Pays) | Expat Employee (Employer Pays) | Expat Employee (Employee Pays) |
|---|---|---|---|---|
| Unemployment (SANED – 2%) | 1% of the contributory salary | 2% of the contributory salary | 9% of the contributory salary | – |
| Retirement Pension (18%) | 9% of the contributory salary | 1% of the contributable wage (employer) | – | – |
| Occupational Hazards (2%) | 2% of the contributory salary | – | 1% of the contributory salary | – |
| Total (up to SAR 45,000 cap) | 1% of the contributory salary | – | 2% of the contributory salary | 1% of the contributable salary |
Frequently Asked Questions
1. What is GOSI in Saudi Arabia?
GOSI is the General Organization of Social Insurance, which includes retirement, unemployment, and work injury.
2. How is GOSI calculated in 2025?
It is calculated on your basic salary plus housing allowance up to SAR 45,000 at a set contribution rate.
3. Is GOSI mandatory in Saudi Arabia?
Yes. Saudis and expatriates who are on employment contracts are all to be registered in GOSI.
4. What are the benefits of GOSI to Saudis?
The retirement benefits, unemployment insurance, and workplace injury insurance.
5. What are the benefits of GOSI to expats?
Not retirement pensions, but principally work injury and occupational hazard cover.