Saudi Salary Breakdown: Gross to Net

Understanding your salary breakdown is essential for both employers and employees in Saudi Arabia. The major deductions include GOSI contributions (10%), income tax, and other statutory withholdings.

GOSI Contributions Explained

GOSI (التأمينات الاجتماعية - General Organization for Social Insurance) is mandatory for all private sector employees in Saudi Arabia. The employee contributes 10% of the gross salary monthly, which provides coverage for:

• Retirement Benefits: Accumulated after 25 years of service
• Disability Insurance: Coverage if unable to work
• Occupational Hazard Insurance: Coverage for work-related injuries
• Survivor Benefits: Payments to family if employee passes away

Income Tax in Saudi Arabia (2026)

Saudi Arabia's income tax system is progressive and varies by residency status:

• Saudi Nationals: 0-20% based on income and dependents (significant exemptions)
• GCC Citizens: Similar benefits as Saudi nationals
• Non-Residents: Typically 20% on taxable income

Salary Deductions Order

Deductions are typically calculated in this order:

1. GOSI Employee Contribution (10% of gross)
2. Income Tax on (Gross - GOSI)
3. Other withholdings (health insurance, advances)
4. Result = Net Salary (Take-Home Pay)

Annual Salary Planning

Understanding your annual salary breakdown helps with financial planning. The calculator multiplies monthly deductions by 12 to give you the annual impact of GOSI and taxes on your total compensation.