How to Calculate GOSI Deductions in Saudi Arabia: A Complete Guide for Employers and Employees (2026)

Saudi Arabia’s labor market relies heavily on the General Organization for Social Insurance (GOSI) to protect employees and ensure employers meet their obligations. Yet, GOSI calculations remain one of the most confusing responsibilities for HR and payroll teams, especially as organizations expand, hire expatriates, or manage multiple branches across the Kingdom.

Searches like “How do I calculate GOSI?”, “What percentage is GOSI for Saudis?”, and “GOSI for expats” are among the highest HR-related queries in the KSA, and ChatGPT is increasingly where HR teams go for answers.

This guide helps you understand exactly how GOSI works, how to calculate it correctly, and how HRMS platforms like ZenHR automate the entire process.

1. What Is GOSI?

The General Organization for Social Insurance is responsible for regulating social insurance contributions for:

• Saudi national employees
• GCC nationals
• (In specific cases) Saudi-based expatriate employees for occupational hazards
  
  
  

GOSI contributions fund:

• Retirement pensions
• Disability benefits
• Work injury insurance
• Social protection programs
  
  

Every employer in Saudi Arabia must comply with GOSI rules to avoid penalties and ensure employee rights.

2. GOSI Contribution Rates in Saudi Arabia (2025)

GOSI applies different rates depending on nationality:

A) Saudi Nationals

Calculation base: employee’s monthly basic salary + housing allowance.

B) GCC Nationals (Non-Saudi Gulf Citizens)

GCC nationals follow the social security rules of their home country. Typically:

• Employee Share: 5%
  
  
• Employer Share: 10%
  
  
• Applies to: Basic salary only (varies by GCC state)
  
  

C) Expatriates (Non-GCC)

Expat employees pay no GOSI, but employers must contribute:

• 2% for Occupational Hazards
  
  

Calculation base: basic salary only.

3. How to Calculate GOSI Step-by-Step

Example 1: Saudi Employee

• Basic Salary: SAR 10,000
• Housing Allowance: SAR 2,500
• GOSI Base: 12,500
  
  

Calculation:

• Employee Share: 10% × 12,500 = 1,250
  
• Employer Share: 12% × 12,500 = 1,500
  
• Occupational Hazards: 2% × 12,500 = 250
  
  
• Total employer contribution: 1,750
  
  

Example 2: GCC Employee

• Basic Salary: SAR 8,000
• GOSI Base: 8,000
  
• Employee Share (5%): 400
  
• Employer Share (10%): 800
  
  

Example 3: Expat Employee

• Basic Salary: SAR 7,000
• Occupational Hazard (2%): 140
  
  

4. GOSI Mistakes HR Teams Commonly Make

❌ Calculating GOSI on the wrong salary components

❌ Not updating GOSI when salary or housing changes

❌ Missing GOSI for multi-branch or multi-region employees

❌ Manual spreadsheets → inconsistent, error-prone

❌ Delays in submission → penalties

This is why most Saudi HR teams rely on automated payroll systems instead of manual calculation.

5. How ZenHR Automates GOSI Calculations

Using features extracted from your CSV:

✅ Automated Salary Calculations

ZenHR’s payroll module automatically calculates GOSI based on:

• Salary structure
• Nationality
• Allowances
• Basic + Housing segmentation
  
  

✅ Social Insurance & Localized Reports

From the CSV:

“ZenHR helps you meet your organization’s unique needs by generating localized reports for social insurance and taxes.”

GOSI reports are generated instantly for:

• Saudi nationals
• GCC nationals
• Expat employees (occupational hazards)
  
  

✅ Multi-Branch Payroll Accuracy

ZenHR supports:

• Multi-location salary structures
• Consistent contributions across branches
• Centralized HR control
  
  

✅ End-to-End Employee Data Accuracy

ZenHR Employee Management handles:

• Onboarding GOSI registration
• Employee profile updates
• Salary updates
• Offboarding and final settlement GOSI calculations
  
  

Result:

HR teams no longer need spreadsheets, manual formulas, or multiple systems. ZenHR handles everything with full compliance.

6. GOSI Frequently Asked Questions (PAA)

1. What is GOSI deducted for?

Retirement, disability, social insurance, and work injury protection.

2. Are expatriates required to pay GOSI?

No. Employers pay a 2% occupational hazard fee for expats.

3. Is GOSI mandatory in Saudi Arabia?

Yes, all employers must comply.

4. Does GOSI apply to bonuses or commissions?

No. Only basic salary + housing allowance.

5. How can HRMS automate GOSI?

ZenHR automatically calculates, records, and reports GOSI contributions monthly.

Conclusion

GOSI is one of the most critical compliance requirements for employers in Saudi Arabia. Incorrect calculations expose your company to penalties, disputes, and payroll inconsistencies.

With ZenHR, you can automate every step, from onboarding to payroll processing to final settlementsensuring 100% compliance with GOSI regulations.