Saudi Arabia's General Organisation for Social Insurance (GOSI) will apply an increased combined contribution rate for Saudi national employees registered under the new Social Insurance Law (introduced 3 July 2024), effective 1 July 2026.
What is changing
GOSI combined contribution rate, employees registered from 3 July 2024
- From 1 July 2026, the total GOSI contribution rate for Saudi nationals hired from 3 July 2024 increases from 22.5% to 23.5%, split as follows:
- Employer: 12.75% (10% pension + 2% occupational hazard + 0.75% SANED)
- Employee: 10.75% (10% pension + 0.75% SANED)
- Contributions are calculated on basic salary plus housing allowance, capped at SAR 45,000 per month.
- This is the third annual 0.5% step-up under the phased reform programme running until 2028.
Legacy employees, no change
- Saudi nationals registered with GOSI before 3 July 2024 remain on the legacy rate of 21.5%:
- Employer: 11.75% (9% pension + 2% occupational hazard + 0.75% SANED)
- Employee: 9.75% (9% pension + 0.75% SANED)
Expatriate employees, no change
- Expatriate employees remain subject to occupational hazard coverage only.
- Employer contribution: 2%. Employee contribution: 0%.
Important notes
- Employers operating a mixed workforce of pre- and post-3 July 2024 hires must apply the correct rate to each employee individually.
- The next scheduled step-up under the phased reform is expected on 1 July 2027.
Official source