How it is calculated
There is no income tax on employee salaries in Saudi Arabia; the main deduction is the GOSI contribution:
- Contributory wage: basic salary + housing allowance only, capped at SAR 45,000 a month.
- Saudi, first registered before 3 July 2024 (legacy): 9% pension + 0.75% SANED = 9.75%.
- Saudi, first registered on or after 3 July 2024: the pension share rises every 1 July; from 1 July 2026 to 30 June 2027 it is 10% + 0.75% SANED = 10.75%.
- Non-Saudi: no employee deduction; the employer pays 2% occupational hazards.
Worked example
A Saudi employee (legacy) with basic 10,000, housing 2,500 and transport 1,000: contributory wage 12,500, deduction = 12,500 × 9.75% = 1,218.75. Net = 13,500 − 1,218.75 = SAR 12,281.25.
Frequently asked questions
Is transport allowance included in GOSI?
No — contributions are on basic salary plus housing allowance only.
How do I know if I am legacy or new?
It depends on the date of your first GOSI registration, not your current contract.
Do non-Saudis pay anything?
No employee deduction; the employer pays the occupational hazards contribution.
Is there income tax on salaries?
There is no personal income tax on employee salaries in Saudi Arabia.
Rules last checked: 2026-10