How to use this calculator
Step 1 — Enter your monthly gross salary in SAR (basic + housing + transport + other fixed allowances).
Step 2 — Select your nationality. Saudi nationals pay GOSI; expatriates don't pay GOSI or income tax, so for most expats net equals gross.
Step 3 — Enter your basic salary and housing allowance separately. GOSI is computed on basic + housing only (capped at SAR 45,000/month), not on your full gross — this is the detail that changes the result most.
Step 4 — Choose your GOSI registration era. Employees registered before the reform pay 9.75%; new registrations pay 10.75%. Pick the wrong one and your pension deduction is off by a full percentage point.
How salary deductions work in Saudi Arabia
There is no income tax on salaries in Saudi Arabia. The single mandatory employee deduction is GOSI (General Organization for Social Insurance), and it applies to Saudi nationals only.
Since the New Social Insurance Law (effective 3 July 2024), two systems run in parallel:
| GOSI system | Employee rate (current) |
|---|
| Legacy — registered before 3 Jul 2024 | 9.75% fixed |
| New — registered on/after 3 Jul 2024 | 10.75% (Jul 2026–Jun 2027) |
The new-system rate rises 0.5% per year until it reaches 11.75% in July 2028. The contribution base is basic salary + housing allowance only (transport and other allowances excluded), capped at SAR 45,000/month.
Expatriates: your employer pays a 2% occupational-hazard contribution to GOSI separately — it is never deducted from your salary.
End-of-service gratuity: the payout expats forget to count
Your gratuity is often worth several months' salary — and it's completely tax-free. Under Articles 84–85 of the Labor Law: half a month's wage for each of the first 5 years, plus one full month's wage for each year after, based on your last wage including fixed housing and transport allowances (not basic salary alone).
Example: 6 years at SAR 18,000/month wage, contract completed: 0.5 × 18,000 × 5 + 1 × 18,000 × 1 = SAR 63,000. Resigned at 6 years → two-thirds = SAR 42,000. Resigned at 1.5 years → SAR 0.
🧮 Calculate your exact gratuity →
Basic vs. housing vs. transport: why the split matters
Saudi contracts typically split pay into basic (60–70%), housing (25–30%) and transport (~10%). Two things depend on the split: GOSI is charged on basic + housing only, and gratuity uses the full last wage including fixed allowances. A SAR 20,000 package with a SAR 15,000 basic accrues a bigger gratuity than the same package with a SAR 12,000 basic — check your contract's "basic" line before comparing offers.
Sending money home
With zero income tax, most expats remit a large share of pay. The SAR is pegged at 3.75/USD, so compare each provider's total received — a 2% better rate on SAR 8,000/month saves over SAR 2,000 a year. Check the live rate on our salary currency converter.
Sources & verification
Figures compiled from: General Organization for Social Insurance (GOSI).
Last verified: 23 October 2026.