--- title: "Saudi Arabia" id: "11881" type: "global-payroll" slug: "saudi-arabia" published_at: "2025-08-05T10:39:16+00:00" modified_at: "2026-10-12T14:18:46+00:00" url: "https://topsourceworldwide.com/global-payroll/saudi-arabia/" markdown_url: "https://topsourceworldwide.com/global-payroll/saudi-arabia.md" taxonomy_continent: - "Asia" --- # Payroll Outsourcing in Saudi Arabia Fully managed payroll in Saudi Arabia (KSA): GOSI contributions, Wage Protection System files and end-of-service accruals handled for Saudi and expatriate staff, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What our payroll services in Saudi Arabia cover Saudi Arabia has no personal income tax, so payroll centres on GOSI social insurance, salaries paid through the Wage Protection System and the end-of-service award every employee builds up. The rules differ for Saudi nationals and expatriates, and a new Social Insurance Law is raising pension contributions for Saudis who join the system for the first time. ### GOSI for Saudi nationals Employer and employee each pay 9% to the pension branch and 0.75% to SANED unemployment insurance on basic salary and housing allowance, up to SAR 45,000 a month. The employer adds 2% for occupational hazards. ### Higher pension rates for new entrants Saudis first registered from 3 July 2024 pay 10% each to the pension branch from July 2026, rising to 11% each from July 2028 under the new Social Insurance Law. ### 2% occupational hazards for expatriates Non-Saudi employees are covered only by the occupational hazards branch, paid by the employer at 2%. Nothing is deducted from their salary for GOSI. ### Salaries through the Wage Protection System Salaries are paid by bank transfer and reported through the Mudad platform, so the Ministry of Human Resources and Social Development can check that each employee is paid on time and in full. ### End-of-service award Every employee accrues half a month’s wage for each of the first five years of service and a full month’s wage for each year after, paid when employment ends. ## Our Partners Globally ## Calculate Your Employee Costs in Saudi Arabia Enter a gross annual salary (basic salary plus housing allowance) to see the employer’s GOSI cost in 2026 for a Saudi employee registered before July 2024: 9% pension, 0.75% SANED and 2% occupational hazards, up to SAR 45,000 a month. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Saudi Arabia Annually Monthly | | British Pound | Saudi Arabia | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Saudi hiring costs before you commit Tell us the role, the nationality and the salary package. We’ll send back the full employer cost, including GOSI and the end-of-service accrual, within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Saudi Arabia Explained A Saudi employee costs about 11.75% on top of basic salary and housing allowance in GOSI contributions, and an expatriate 2%, before the end-of-service award, medical insurance and government fees. The exact figure depends on the employee’s nationality and when they joined GOSI. Here’s the breakdown. #### GOSI contributions for Saudi nationals Saudi employees are covered by the pension (annuities) branch, SANED unemployment insurance and the occupational hazards branch. For those registered before 3 July 2024, the employer and the employee each pay 9% to the pension branch and 0.75% to SANED, and the employer pays 2% for occupational hazards: 11.75% from the employer and 9.75% from the employee. Contributions are calculated on basic salary plus housing allowance, with a maximum contributory wage of SAR 45,000 a month; other allowances, such as transport, are not included. The employer deducts the employee’s share from salary and pays both to GOSI every month. Late payment carries a fine of 2% of the amount due for each month of delay. #### The new Social Insurance Law The Social Insurance Law issued by Royal Decree M/273 applies to Saudis who join the system for the first time from 3 July 2024, with no earlier contribution periods. Their pension contribution, split equally between employer and employee, started at 18% and rises by one point a year: 19% from July 2025, 20% from July 2026, 21% from July 2027 and 22% from July 2028, when each side pays 11%. The pension age for these employees is 65. Employees who were already contributing before July 2024 stay on the previous rates of 9% each, so a payroll in Saudi Arabia now runs two sets of pension rates side by side. #### Expatriate employees and government fees Non-Saudi employees are covered only by the occupational hazards branch, which the employer pays at 2% of basic salary and housing allowance; no GOSI contribution is deducted from their pay. Under the Labor Law, an expatriate’s contract without a stated term is treated as a one-year contract renewed for the same period, and the employer bears the fees for their work permit and residence permit (Iqama). Employers of foreign workers also pay a monthly expat levy for each one. Saudization targets under the Nitaqat programme set the share of Saudi nationals each company must employ, by sector and size, and missing them restricts new work permits. #### What a Saudi employee actually costs For a Saudi employee registered with GOSI before July 2024, with a basic salary of SAR 12,000 and a housing allowance of SAR 3,000 a month, the employer pays SAR 1,350 to the pension branch, SAR 112.50 to SANED and SAR 300 for occupational hazards: SAR 1,762.50, a monthly cost of SAR 16,762.50, or 11.75% on top of pay, before the end-of-service accrual and medical insurance. The employee pays SAR 1,350 of pension and SAR 112.50 of SANED, SAR 1,462.50 in all, and receives SAR 13,537.50, with no income tax. An expatriate on the same package costs SAR 15,300 a month in GOSI terms and keeps the full SAR 15,000, before the expat levy and permit fees. #### Working hours, leave, notice and end of service Working hours are up to eight a day and 48 a week, reduced to six a day and 36 a week for Muslim employees during Ramadan. Overtime is paid at the hourly wage plus 50% of the basic wage, or with time off if the employee agrees. Employees get 21 days of paid annual leave, 30 after five years of service, and since the 2025 amendments to the Labor Law maternity leave is 12 weeks on full pay and fathers get three days. Probation can be agreed for up to 180 days. For indefinite contracts, the employee gives 30 days’ notice and the employer 60. The end-of-service award is half a month’s wage for each of the first five years and a full month’s wage for each year after; employees who resign receive a third of it after two to five years, two thirds after five to ten and all of it after ten. ## Saudi payroll contributions, 2026 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | Pension, registered before 3 July 2024 | 9% | 9% | Saudi nationals | | Pension, first registered from 3 July 2024 | 10% | 10% | Saudi nationals, from July 2026; 11% each from July 2028 | | SANED unemployment insurance | 0.75% | 0.75% | Saudi nationals | | Occupational hazards | 2% | — | All employees, Saudi and expatriate | | Contributory wage | Basic plus housing | Basic plus housing | Up to SAR 45,000 a month | | Personal income tax | — | None | No tax is withheld from salaries | | Late GOSI payment | 2% a month | — | Of the contributions due | | End-of-service award | Accrued | — | Half a month’s wage a year for five years, then a full month | ### GOSI contributions by employee group, from July 2026 | Branch | Saudi, registered before 3 July 2024 | Saudi, first registered from 3 July 2024 | Expatriate | | --- | --- | --- | --- | | Pension, employer | 9% | 10% | — | | Pension, employee | 9% | 10% | — | | SANED, employer | 0.75% | 0.75% | — | | SANED, employee | 0.75% | 0.75% | — | | Occupational hazards, employer | 2% | 2% | 2% | | Total employer | 11.75% | 12.75% | 2% | | Total employee | 9.75% | 10.75% | — | ### Gross to net and employer cost in Saudi Arabia, monthly | Employee | Basic and housing | Employee GOSI | Net pay | Employer GOSI | Total monthly cost | | --- | --- | --- | --- | --- | --- | | Saudi, registered before July 2024 | SAR 15,000 | SAR 1,462.50 | SAR 13,537.50 | SAR 1,762.50 | SAR 16,762.50 | | Saudi, first registered from July 2024 | SAR 15,000 | SAR 1,612.50 | SAR 13,387.50 | SAR 1,912.50 | SAR 16,912.50 | | Expatriate | SAR 15,000 | — | SAR 15,000.00 | SAR 300.00 | SAR 15,300.00 | The gross-to-net table assumes a basic salary of SAR 12,000 and a housing allowance of SAR 3,000 a month, with no other allowances, and the pension rates in force from July 2026. Employer costs exclude the end-of-service accrual, medical insurance, the expat levy and permit fees. These are TopSource calculations from the verified rates. Rates and thresholds shown were verified on 12 October 2026 against the Social Insurance Law (Royal Decree M/273, official translation of the Bureau of Experts) and the General Organization for Social Insurance’s guidance on contributions and contributory wages; labour rules reflect the Labor Law as amended in 2025. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How payroll outsourcing in KSA works with TopSource 1. Map your setup We confirm your GOSI registration, your Mudad and Qiwa accounts, your Nitaqat band and the contract terms that set basic salary, housing and transport allowances, notice and benefits for each employee. 2. Migrate or onboard New hires are registered with GOSI under the right branches for their nationality and registration date, and expatriates’ contracts and permits are checked. Year-to-date pay, leave balances and end-of-service accruals are carried across. 3. Run and review Each month you receive a payroll report for approval before anything is paid: gross to net per employee and every GOSI, allowance and end-of-service line, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay salaries by bank transfer, submit the Wage Protection System file through Mudad, pay GOSI contributions every month and settle end-of-service awards when employees leave. 5. Stay current Pension contributions for new entrants rise again in July 2027 and July 2028, and Saudization targets change by sector. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Payroll Outsourcing in Saudi Arabia TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We run Saudi payroll in-house and file under your own GOSI and Mudad registrations rather than a bureau’s, so the same team that pays your contributions answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions and fees, and one live Portico view of Saudi Arabia beside every other country we run for you, across the Middle East and beyond. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Saudi Arabia and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Saudi Arabia Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Saudi Arabia payroll FAQs ### What are employer payroll contributions in Saudi Arabia in 2026? For Saudi employees registered before July 2024, employers pay 11.75% of basic salary and housing allowance to GOSI: 9% pension, 0.75% SANED and 2% occupational hazards. For expatriates, only the 2% occupational hazards contribution applies. ### Is there income tax on salaries in Saudi Arabia? No. Saudi Arabia does not tax employment income, so no income tax is withheld from salaries. Saudi employees have GOSI pension and SANED contributions deducted; expatriates have no GOSI deduction. ### How do GOSI rates differ for new Saudi employees? Saudis first registered with GOSI from 3 July 2024 fall under the new Social Insurance Law: their pension contribution is 10% each for employer and employee from July 2026, rising to 11% each from July 2028. Those registered earlier stay at 9% each. ### What is the maximum salary for GOSI contributions? Contributions are calculated on basic salary plus housing allowance, up to SAR 45,000 a month. Other allowances, such as transport, are not included. ### What is the Wage Protection System in Saudi Arabia? It requires employers to pay salaries through banks and report them through the Mudad platform, so the Ministry of Human Resources and Social Development can check that every employee is paid on time and in full. Late or missing salaries can lead to penalties. ### How much does it cost to employ someone in Saudi Arabia? A Saudi employee registered before July 2024 on SAR 15,000 a month in basic salary and housing costs SAR 16,762.50 a month in GOSI terms, 11.75% on top, before end-of-service and medical insurance. Tell us the role, nationality and package and we’ll send the full cost within one business day. ### How is the end-of-service award calculated in Saudi Arabia? Half a month’s wage for each of the first five years of service and a full month’s wage for each year after, paid when employment ends. Employees who resign receive a third after two to five years, two thirds after five to ten and the full award after ten. ### What notice period applies in Saudi Arabia? For indefinite contracts, 30 days when the employee ends the contract and 60 days when the employer does, since the 2025 amendments to the Labor Law. Probation can be agreed for up to 180 days. ### How long is maternity leave in Saudi Arabia? 12 weeks on full pay since the 2025 amendments to the Labor Law, six of them after the birth. Fathers get three days of paid leave. ### Can a foreign company run payroll in Saudi Arabia without an entity? Running payroll in Saudi Arabia means registering with GOSI, the Ministry of Human Resources and Mudad, and sponsoring expatriates’ permits, which requires a licensed Saudi entity. TopSource can run payroll for your Saudi entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more