Understanding how to calculate your net salary after GOSI and tax deductions is essential for every employee in Saudi Arabia. In this comprehensive guide, we'll explain all deductions, allowances, and accurate formulas to calculate your actual salary.
What is GOSI?
The General Organization for Social Insurance (GOSI) is a Saudi government agency that implements social insurance regulations. It aims to provide social protection for private sector employees through:
- Retirement pension
- Occupational hazards compensation
- Unemployment compensation (SANED)
- End of service benefits
Basic Salary Components
To accurately calculate your net salary, understand your gross salary components:
1. Basic Salary:
The base amount agreed in the employment contract, must be at least 40% of total salary per Saudi labor law.
2. Housing Allowance:
Typically 25% to 30% of basic salary.
3. Transportation Allowance:
Ranges between 10% to 15% of basic salary.
4. Other Allowances:
- Phone allowance
- Children's education allowance
- Administrative nature allowance
- Special bonuses
GOSI Deduction Rates 2025
Deduction rates differ between Saudi and expatriate employees:
For Saudi Employees
Employee Deduction: 10%
- 9% for retirement pension
- 1% for unemployment (SANED)
Employer Contribution: 12%
- 9% for pension
- 2% for occupational hazards
- 1% for unemployment
For Expatriate Employees
Employee Deduction: 0%
No GOSI deduction from expatriate salary
Employer Contribution: 2%
- 2% only for occupational hazards
Calculate Your Net Salary Now
Use our free salary calculator to calculate your net salary after GOSI deductions with high accuracy.
Net Salary Calculation Formula
For Saudi Employees:
Net Salary = Gross Salary - (Basic Salary × 10%)
Practical Example:
- Basic Salary: SAR 8,000
- Housing Allowance: SAR 2,400
- Transportation: SAR 800
- Gross Salary: SAR 11,200
- GOSI Deduction: 8,000 × 10% = SAR 800
- Net Salary: SAR 10,400
Minimum and Maximum Subscription Limits
GOSI has set subscription limits:
- Minimum subscription wage: SAR 1,500 monthly
- Maximum subscription wage: SAR 45,000 monthly
If your basic salary exceeds SAR 45,000, GOSI is calculated on SAR 45,000 only.
End of Service Benefits
According to Saudi Labor Law, employees are entitled to end of service benefits calculated as follows:
| Service Duration | Benefit |
|---|---|
| Less than 2 years | No benefit |
| 2 to 5 years | Half month per year for first 5 years |
| More than 5 years | Half month per year for first 5 years + full month per year thereafter |
Financial Planning After Knowing Your Net Salary
After calculating your net salary, proper financial planning is important. Here are some useful tools:
Conclusion
Understanding how to calculate your net salary and knowing your employee rights is essential for sound financial planning. Use our free salary calculator to accurately calculate your net salary, and plan your financial future using our savings calculator and investment calculator.