How to Calculate Net Salary in Saudi Arabia 2026 (With Allowances and GOSI)
Quick answer: Net salary = basic salary + all allowances − deductions. For a Saudi employee the main deduction is GOSI: 9.75% (old system) or 10.75% (new system) of basic + housing. For an expat nothing is deducted for GOSI, and there is no income tax on salaries in Saudi Arabia, so an expat's net salary is usually the full gross salary.
Step 1: add up the gross salary
Gross salary = basic salary + housing allowance + transport allowance + any other fixed allowances (food, phone, nature of work). Housing is often 25% of basic and transport 10%, but your contract decides.
Step 2: find the GOSI deduction
| Employee | GOSI from salary | Calculated on |
|---|---|---|
| Saudi, insured before 3 July 2024 | 9.75% | Basic + housing |
| Saudi, first insured on or after 3 July 2024 | 10.75% (from July 2026) | Basic + housing |
| Non-Saudi (expat) | 0% | Nothing deducted |
The GOSI wage counts from 1,500 up to 45,000 SAR. Transport and other allowances are not part of it. Full details are in the GOSI deduction guide.
Step 3: subtract other deductions
- Unpaid absence days (daily wage = monthly wage ÷ 30).
- Salary advances or loans from the employer.
- Penalties allowed under the company's approved work regulations.
- Under the Labor Law (Article 92), these deductions generally cannot take more than half of the wage in a month.
Worked example: Saudi employee
| Item | Old system (SAR) | New system (SAR) |
|---|---|---|
| Basic salary | 6,000 | 6,000 |
| Housing allowance | 1,500 | 1,500 |
| Transport allowance | 600 | 600 |
| Gross salary | 8,100 | 8,100 |
| GOSI (on 7,500) | − 731.25 | − 806.25 |
| Net salary | 7,368.75 | 7,293.75 |
Worked example: expat employee
Same salary (basic 6,000 + housing 1,500 + transport 600). No GOSI is deducted from an expat, so the net salary is 8,100 SAR. The employer pays 2% for occupational hazards on top of the salary; it is not taken from the employee.
Ready table: net salary for a Saudi employee (new system, 10.75%)
| Basic + housing | Transport | Gross | GOSI | Net |
|---|---|---|---|---|
| 4,000 | 400 | 4,400 | 430 | 3,970 |
| 6,000 | 600 | 6,600 | 645 | 5,955 |
| 8,000 | 800 | 8,800 | 860 | 7,940 |
| 10,000 | 1,000 | 11,000 | 1,075 | 9,925 |
| 15,000 | 1,500 | 16,500 | 1,612.50 | 14,887.50 |
Why the payslip may differ
- The wage registered on GOSI is different from your contract.
- Housing is paid yearly or quarterly, not monthly.
- Overtime, bonuses or commissions were added this month. See the overtime guide.
- An absence, loan or penalty was deducted.
Open the net salary calculator →
Frequently asked questions
How is net salary calculated in Saudi Arabia?
Net salary = basic + allowances − GOSI (Saudis only) − other deductions such as absence or loans. There is no income tax on salaries.
Is there income tax on salary in Saudi Arabia?
No. Saudi Arabia does not tax employees' salaries. Saudis pay GOSI contributions, and expats pay nothing from the salary.
What is the net salary of 10,000 SAR for a Saudi?
If basic plus housing is 10,000 and there are no other allowances: 9,025 SAR under the old system (9.75%) or 8,925 SAR under the new system (10.75%).
Is GOSI deducted from allowances?
Only from the housing allowance. Transport and other allowances are not part of the GOSI wage.
What is the net salary for an expat in Saudi Arabia?
Usually the full gross salary, because no GOSI and no income tax is deducted. Only deductions like absence or loans reduce it.
Official sources
- GOSI awareness platform: new social insurance system (rates from 3 July 2024)
- HRSD: Labor Law knowledge centre (wages and deductions)
This guide explains the general rules. It is not legal advice.