Saudi Arabia Salary Calculator — KSA Net Pay, GOSI & EOSB

Understanding how your salary works in Saudi Arabia is essential whether you are negotiating a new offer, planning your finances, or calculating your end-of-service entitlement. Saudi compensation packages typically consist of a basic salary, housing allowance, transport allowance, and various other allowances — and each component carries different implications under Saudi Labour Law and the GOSI system. ## Basic Salary vs Gross Salary vs Net Salary in KSA The basic salary is the fixed, contractual core of your pay. It is the figure used to calculate overtime rates, end-of-service gratuity, annual leave encashment, and GOSI contributions. The gross salary is the total of all components — basic plus housing, transport, and any other allowances. Net salary, or take-home pay, is what you actually receive after deductions. For Saudi nationals, the primary deduction is the GOSI employee contribution of 9.75% applied to the sum of basic salary and housing allowance, subject to a cap of SAR 45,000. This contribution covers both the pension scheme (9%) and the unemployment insurance programme (0.75%). Employers separately contribute 11.75% on behalf of Saudi employees. For expatriates, there is no employee-side GOSI deduction. Employers pay a 2% occupational hazard contribution on the expatriate's gross salary, but this cost is not passed on to the employee. Crucially, Saudi Arabia has no personal income tax, meaning both nationals and expatriates retain the vast majority of their gross salary as net take-home pay. ## GOSI: Social Insurance in Saudi Arabia The General Organization for Social Insurance (GOSI) is the mandatory social insurance body in the Kingdom. Saudi nationals are enrolled in both the pension branch and the unemployment insurance (SANED) programme. The employee share is 9.75% and the employer share is 11.75%, giving a combined contribution of 21.5% of the GOSI base wage. The base for calculation is basic salary plus housing allowance, capped at SAR 45,000. Expatriates are enrolled only in the occupational hazard branch, which is funded entirely by the employer at 2% of gross salary. This means expatriates in Saudi Arabia face no mandatory deduction from their salary for social insurance purposes. ## Overtime Pay Under Saudi Labour Law (Article 107) Saudi Labour Law Article 107 sets the overtime framework. Standard working hours are 8 hours per day and 48 hours per week. During Ramadan, Muslim employees work a maximum of 6 hours per day. Overtime beyond these thresholds on regular weekdays is compensated at 150% of the employee's normal hourly rate. Work performed on officially designated public holidays or on the employee's rest days is compensated at 200% of the hourly rate. The hourly rate for overtime purposes is calculated by dividing the basic salary by 240, which represents 30 days multiplied by 8 hours. For example, an employee earning SAR 10,000 basic salary has an hourly rate of SAR 41.67. Ten hours of regular overtime generates SAR 625 in additional pay (10 × 41.67 × 1.5). Ten hours of holiday overtime generates SAR 833 (10 × 41.67 × 2.0). ## End-of-Service Benefit (EOSB / Gratuity) — Article 84 The end-of-service benefit, commonly called EOSB or gratuity, is one of the most significant financial entitlements for employees in Saudi Arabia. It is governed by Article 84 of the Saudi Labour Law and applies to both Saudi nationals and expatriates. The calculation is based on the Actual Wage, defined as basic salary plus fixed allowances such as housing allowance. For the first five years of service, the entitlement accrues at half a month's Actual Wage per year. From the sixth year onward, this rises to one full month's Actual Wage per year. Partial years are pro-rated. A minimum of two years of continuous service is required before any EOSB entitlement arises. Employees who are dismissed by their employer without cause receive the full calculated amount. Employees who resign receive a reduced entitlement: one-third for service between 2 and 5 years, two-thirds for service between 5 and 10 years, and the full amount after 10 or more years of service. Unused annual leave days are encashed separately at the daily rate (Actual Wage divided by 30) and added to the total settlement. ## Saudi vs Expat Salary Structures: Key Differences Saudi nationals and expatriates are treated differently in several important respects. Saudi nationals are subject to GOSI pension and unemployment contributions, which reduce take-home pay by up to 9.75%. Expatriates pay no employee GOSI but are not enrolled in the pension programme. The Nitaqat Saudization programme requires private-sector employers to maintain minimum ratios of Saudi employees. The minimum basic salary for Saudi nationals to count toward the Nitaqat quota in the private sector is SAR 4,000 per month. There is no equivalent statutory minimum for expatriates. Both groups benefit equally from Saudi Arabia's zero personal income tax policy, which is a primary reason the Kingdom attracts skilled professionals from across the globe. ## Comparing Job Offers in Saudi Arabia When evaluating salary packages in KSA, focus on the total annual compensation rather than the monthly headline figure. Compute the basic salary multiplied by 12, add all allowances multiplied by 12, and include any guaranteed bonuses, annual flight tickets, or education allowances. For Saudi nationals, subtract expected annual GOSI contributions to arrive at actual take-home pay. Always clarify which elements are considered part of the Actual Wage, as this directly affects your EOSB entitlement at the end of your contract. A package with a higher basic salary and lower housing allowance is generally more favourable for long-term service gratuity purposes. *This tool provides estimates based on standard interpretations of Saudi Labour Law. Figures are for informational purposes only. Consult a licensed HR consultant or legal professional for advice specific to your employment contract and circumstances.*