GOSI Explained: What Is Deducted From Your Salary

If you work in Saudi Arabia, a line on your payslip labelled "GOSI" quietly reduces your take-home pay every month. Understanding what that deduction is, why it exists, and what you get in return turns a confusing number into a benefit you can actually rely on. This guide breaks down how the General Organization for Social Insurance (GOSI) works in 2026, who pays what, and how to read it on your salary statement.

What is GOSI?

GOSI (التأمينات الاجتماعية) is the government body that runs Saudi Arabia's social insurance system. It is not a tax — it is a mandatory savings-and-protection scheme that pools contributions from employers and employees to fund long-term benefits. Registration is compulsory for almost all private-sector workers, and contributions are calculated on your contributable wage, which is generally your basic salary plus your housing allowance, subject to a monthly cap (SAR 45,000 as of 2026). Other allowances such as transport, phone, and bonuses are normally excluded.

In simple terms: a slice of your pay goes in now so that you, or your family, receive support later — at retirement, after a workplace injury, or if you lose your job.

What do the contributions cover?

GOSI contributions are split across distinct branches, each funding a different kind of protection:

• Annuities (pensions): the largest portion, building toward a monthly retirement pension and disability or survivor benefits.
• Occupational hazards: covers work-related injuries, illnesses, and death — funded entirely by the employer.
• SANED unemployment insurance: a safety net for Saudi nationals who lose their jobs through no fault of their own (more below).

Saudi vs non-Saudi employees

The biggest difference in how much is deducted depends on your nationality:

• Saudi employees contribute to the full system — annuities, occupational hazards, and SANED. Both you and your employer pay into it.
• Non-Saudi (expatriate) employees are covered only for occupational hazards. This branch is paid entirely by the employer at roughly 2% of the contributable wage, so nothing is deducted from an expatriate's own salary for GOSI. Expats do not pay into the annuities or SANED branches and do not draw a Saudi retirement pension.

So if you are an expatriate and you see no GOSI line reducing your net pay, that is expected — the cost sits with your employer.

Employer vs employee split for Saudis

Saudi Arabia now runs two parallel rate structures for Saudis, depending on when you first registered with GOSI:

• Existing system (first registered before 3 July 2024): a combined rate of about 21.5% of the contributable wage, split roughly 11.75% employer and 9.75% employee. Annuities make up the bulk, occupational hazards (~2%) are employer-only, and SANED adds 0.75% on each side.
• New system (first registered on or after 3 July 2024): the annuities rate rises gradually by 0.5% on each side every year, in steps that take effect on 1 July, through to 2028. For 2026 this means roughly 22.5% combined in the first half of the year and 23.5% from 1 July, again shared between employer and employee.

Because these rates step up over time, the exact figure on your payslip can differ from a colleague's. Always confirm the current percentages on the official GOSI portal, since they are scheduled to keep adjusting.

SANED unemployment insurance

SANED (ساند) is the unemployment-insurance branch reserved for Saudi nationals. Both employee and employer pay 0.75% each — a total of 1.5% of the contributable wage. If you are a Saudi worker who is laid off involuntarily, SANED can provide temporary monthly support while you search for new work, provided you meet the contribution-period and eligibility conditions. It is one of the clearest reasons the Saudi deduction is higher than the expat one: part of it is buying you a genuine safety net.

How it appears on your payslip

On a typical Saudi payslip you will see your gross salary, then a deduction line such as "GOSI" or "التأمينات الاجتماعية" showing the employee share only. The employer's share is paid separately and usually does not appear as a deduction from you. To sanity-check the number:

• Identify your contributable wage (basic + housing, capped at SAR 45,000).
• Apply your employee percentage (around 9.75% under the existing system for Saudis; 0% for expats).
• Compare the result to the GOSI line on your slip.

Want to see your net pay before you accept an offer? Try the free GOSI and salary calculators on Job KSA to estimate your take-home pay in seconds — then browse live Saudi jobs to find your next role.