Saudi Arabia Social Insurance Contributions Guide 2026

Overview — GOSI Contribution Framework

GOSI (General Organization for Social Insurance) is the mandatory social insurance system for Saudi nationals. Contributions are calculated on gross monthly salary up to a ceiling of SAR 45,000 per month. Expatriate workers are not covered by GOSI and have no contribution obligation. Instead, employers must provide private health insurance for expatriate employees under the Cooperative Health Insurance Act. GOSI contributions are divided into three branches: Pension (old-age, disability, survivor), Occupational Hazards (work-related injuries), and Unemployment (SANED).

Employee Contributions (9.75%)

Saudi employees contribute 9.75% of their gross monthly salary (capped at SAR 45,000) to GOSI. This breaks down as:

• Pension: 9.00% of gross salary
• SJ-SANED (Unemployment): 0.75% of gross salary

The employee contribution is deducted at source by the employer and remitted to GOSI monthly. The maximum monthly employee contribution is SAR 4,387.50 (9.75% × SAR 45,000). Contributions above the SAR 45,000 ceiling are not made, and salary amounts above this threshold are not counted for pension benefit calculations.

Employer Contributions (11.75%)

Employers of Saudi nationals contribute 11.75% of gross salary (same SAR 45,000 monthly ceiling). The breakdown:

• Pension: 9.00% of gross salary
• Occupational Hazards: 2.00% of gross salary
• SJ-SANED (Unemployment): 0.75% of gross salary

The maximum monthly employer contribution is SAR 5,287.50 (11.75% × SAR 45,000). The occupational hazard component covers medical care, disability benefits, and compensation for work-related injuries and occupational diseases. Employers in high-risk industries may face adjusted rates.

Combined Total (21.5%)

The total GOSI contribution for Saudi employees is 21.5% of gross salary (up to SAR 45,000/month):

• Employee share: 9.75%
• Employer share: 11.75%
• Total: 21.5% of gross salary
• Maximum combined monthly contribution: SAR 9,675

Both portions are remitted by the employer directly to GOSI. The employee never handles the payment directly. Contributions are mandatory from the start of employment for Saudi nationals in both the private and public sectors.

Expatriate Workers — No GOSI

Expatriate employees in Saudi Arabia are not subject to GOSI contributions. They do not pay the employee share, and employers do not pay the employer share on their behalf. Instead, Saudi labor law requires employers to provide expatriate workers with private health insurance through licensed cooperative health insurance providers. Expatriates also do not receive any GOSI pension or unemployment benefits. Some employers offer private pension or savings schemes for expatriates, but these are voluntary and not mandated by law.

Private Health Insurance for Expatriates

The Cooperative Health Insurance Act (Council of Ministers Resolution No. 71) mandates that all expatriate workers and their dependents must have valid health insurance coverage provided by the employer. The employer bears the full cost of the insurance premium. Insurance coverage must meet minimum standards set by the Council of Cooperative Health Insurance (CCHI). Premium costs vary by insurer, age, and coverage level but typically range from SAR 800 to SAR 2,500 per person annually. Failure to provide coverage results in fines and visa processing restrictions.

Voluntary Contributions

Saudi nationals who are not employed (e.g., self-employed, unemployed) may make voluntary GOSI contributions to maintain pension eligibility. Voluntary contributions are calculated at the same total rate of 21.5% (both employee and employer portions) on a declared salary. The minimum voluntary contribution is based on a minimum salary determined annually by GOSI. Voluntary contributors must be at least 20 years old and not covered by mandatory GOSI. Voluntary contributions count toward the 25-year minimum contribution period for pension eligibility.

FAQs

Do expatriates in Saudi Arabia pay GOSI contributions?

No. GOSI coverage is limited to Saudi nationals. Expatriates have no GOSI contribution requirement, but their employers must provide private health insurance.

What happens if an employer fails to pay GOSI contributions?

Employers face penalties including fines of up to SAR 10,000 per employee per violation, plus late payment fees of 2% per month on unpaid contributions. GOSI may also initiate legal proceedings.

Can a Saudi national opt out of GOSI?

No. GOSI contributions are mandatory for all Saudi employees in the private and public sectors, regardless of employment type or contract duration.

What is the SANED unemployment benefit?

SANED provides financial support to unemployed Saudi nationals who have lost their jobs involuntarily. The benefit is approximately 60% of the average monthly salary for up to 12 months, subject to conditions.

Disclaimer

This guide provides general information about Saudi Arabia's GOSI social insurance contributions for the 2026 tax year. Contribution rates and regulations may change. Always consult with a qualified GOSI advisor or the General Organization for Social Insurance directly for advice specific to your situation. InvestmentKit does not provide legal or tax advice.