Aqid ERPFrom gross to net in Saudi Arabia
There is no income tax on salaries in Saudi Arabia. What separates a gross salary from the net paid is the employee's GOSI contribution, taken on the basic wage plus the housing allowance (the contribution base), within GOSI's floor and cap. Other allowances — transport, phone, meals — are paid in full and attract no contribution.
A Saudi employee contributes 9.75% of the base: 9% to the annuities branch and 0.75% to unemployment insurance (SANED). The employer adds 11.75% (9% annuities, 2% occupational hazards, 0.75% SANED). A Saudi first registered with GOSI on or after 3 July 2024 is on the new Social Insurance Law, whose annuities share rises by half a percentage point each July from 2025 for employee and employer alike. An expatriate contributes nothing; the employer pays 2% of the base for occupational hazards.
A worked example
A Saudi employee on a basic of SAR 8,000, housing of 2,000 and transport of 500. The contribution base is 10,000.
| Gross salary | 10,500.00 |
|---|---|
| GOSI base (basic + housing) | 10,000.00 |
| Employee share 9.75% | 975.00 |
| Net paid | 9,525.00 |
| Employer share 11.75% | 1,175.00 |
| Cost to the employer | 11,675.00 |
What the calculator uses
The same GOSI rates, floor and cap that Aqid ERP's payroll applies, dated and sealed, so the calculator and a pay run cannot disagree. The result is an estimate: absence deductions, overtime, loans and a contract's own terms change the figure. The rates it applies are shown with the result.