New Saudi hire pays more GOSI than older staff
New Saudi hire has more GOSI deducted than older Saudi staff. Why?
The situation
Saudis first registered with GOSI on or after 3 July 2024 fall under the new Social Insurance Law, where the pension rate rises 0.5 percent each 1 July until 2028.
The law
- Social Insurance Law (Royal Decree M/273, from 3 July 2024): New Saudi entrants: pension rate rises 0.5 percent each 1 July to 11 percent each side by 2028
- GOSI contribution rules: Old system Saudis 9.75 percent employee and 11.75 percent employer; non-Saudis 2 percent employer (hazards); wage base capped at SAR 45,000
What it means for you
From 1 July 2026, the new system is 10.75 percent employee and 12.75 percent employer, while the old system stays at 9.75 percent and 11.75 percent. Example: wage SAR 10,000: new hire pays SAR 1,075; an older employee pays SAR 975. The first registration date decides, not the joining date.
What to do
- Check first registration date.
- Apply right rate.
- Update every July.
We can do this for youGOSI registration and monthly contributions for Saudi and expat staff under the old and new Social Insurance systems: SAR 1,200