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.