How to Calculate Your Net Salary in Saudi Arabia

Your gross salary and net take-home pay in Saudi Arabia can differ by hundreds or thousands of riyals depending on GOSI, insurance, loans, and allowances. Here's exactly how the calculation works.

Step 1: Start with Gross Salary

Gross salary usually includes:

• Basic salary
• Housing allowance (usually 25% of basic)
• Transport allowance
• Nature-of-work allowances
• Other fixed monthly allowances

Step 2: Calculate GOSI Deduction (Saudi employees)

Saudi employees pay 9.75% of (basic + housing) to GOSI.

Also 0.75% for SANED (unemployment insurance).

Total employee GOSI + SANED = 10.5%

Step 3: Other Deductions

• Life or medical insurance premiums
• Loan installments to the employer
• Advance salaries
• Unpaid absence days
• Any court-ordered deductions

Worked Example: Saudi Employee

Sara's package:

• Basic: 8,000 SAR
• Housing: 2,000 SAR
• Transport: 500 SAR
• Gross: 10,500 SAR

Deductions:

• GOSI (9.75% of 10,000): 975 SAR
• SANED (0.75% of 10,000): 75 SAR
• Total: 1,050 SAR

Net salary = 10,500 − 1,050 = 9,450 SAR

Non-Saudi Employees

Non-Saudis have no GOSI or SANED deduction (employer pays 2% occupational hazards). Net salary = Gross salary minus any voluntary deductions.

Overtime

Per Saudi Labor Law, overtime is paid at 150% of hourly rate (basic salary / 240).

Housing Allowance Handling

Some employers pay housing annually as a lump sum. Others include it monthly. Both are legal, but ask HR which model applies to you.

Free Salary Calculator

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FAQ

Is income tax deducted?

No — Saudi Arabia has no personal income tax for salaries.

What about ZAKAT on my salary?

Only if the accumulated salary stays for a full Hijri year and exceeds nisab.

My employer isn't paying GOSI — what to do?

File a complaint via the GOSI website or Musaned platform. It's a legal requirement.

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