The General Organisation for Social Insurance (GOSI) is a mandatory system that underpins employee benefits and employer compliance in Saudi Arabia. In 2026, recent reforms continue to reshape contribution rates, particularly for new Saudi hires, making it essential for employers to understand their obligations and accurately forecast workforce costs.

What is GOSI, and is it mandatory in Saudi Arabia?

GOSI is a government-administered social insurance scheme established under Saudi law. It is legally required for:

▪️All Saudi national employees
▪️All expatriate employees (limited to occupational hazard coverage)

Employers must register eligible employees, calculate contributions correctly, and make monthly payments. Non-compliance can result in penalties, fines, and operational restrictions.

For official guidance and employer registration requirements, please refer to the General Organization for Social Insurance website: https://www.gosi.gov.sa

What salary is used to calculate GOSI?

GOSI contributions are calculated based on Basic salary and Housing allowance with the combined amount capped at SAR 45,000 per month.

GOSI contribution rates in Saudi Arabia (2026)

Saudi Nationals (Existing Employees – registered before July 2024)

Contribution rates remain unchanged under the legacy system:

▪️Employee: 9% pension + 0.75% SANED = 9.75%
▪️Employer: 9% pension + 2% occupational hazard + 0.75% SANED = 11.75%

Total: 21.5%

Saudi Nationals (New Employees – registered from July 2024)

Following the introduction of the new Social Insurance Law, contribution rates are gradually increasing. From July 2026, the rates are:

▪️Employee: 10% pension + 0.75% SANED = 10.75%
▪️Employer: 10% pension + 2% occupational hazard + 0.75% SANED = 12.75%

Total: approximately 23.5%

This increase is part of a phased reform running until 2028.

Expatriate Employees

For non-Saudi employees:

▪️Employee contribution: 0%
▪️Employer contribution: 2% (occupational hazard only)

Expat employees are not covered for pension or unemployment insurance under GOSI.

GCC Nationals

GCC nationals typically remain subject to their home country’s social insurance schemes, with employers required to comply with applicable cross-border regulations.

What does GOSI cover?

GOSI contributions fund a range of benefits, including:

✔️Retirement pensions.
✔️Unemployment insurance (SANED).
✔️Work-related injury compensation.
✔️Disability and survivor benefits.

Employer obligations under GOSI

To remain compliant in 2026, employers must:

✔️Register employees within the required timeframe.
✔️Accurately calculate contributions.
✔️Pay contributions monthly.
✔️Maintain payroll records for audit purposes.

Late or incorrect payments may result in financial penalties, often calculated per delayed month.

How GOSI Supports Strategic Hiring in 2026

GOSI plays an important role in effective workforce planning and long-term business sustainability:

▪️Investing in Saudi talent contributes to national development goals while strengthening organisational stability and local market expertise.
▪️Updated contribution structures for new Saudi hires (post-July 2024) encourage forward-thinking hiring strategies and long-term workforce planning.
▪️Incorporating GOSI into salary benchmarking enables more accurate budgeting and helps businesses build competitive, compliant compensation packages.

Key takeaway

GOSI is a mandatory and strictly enforced component of employment in Saudi Arabia. In 2026, employers must navigate a dual system, with higher contribution rates applying to new Saudi hires as part of ongoing reforms. Ensuring compliance and understanding cost implications is critical for operating successfully in the Kingdom.

Looking to hire in Saudi Arabia?

If you need support navigating hiring regulations, salary benchmarking, or workforce planning in KSA, our team can help you stay compliant while securing the right talent. Contact us here to find out more.

Read next: New 2026 Saudisation Law – What It Means for Employers

Please note that regulations are subject to change. Always refer to the latest updates from the General Organization for Social Insurance and applicable Saudi labour laws.