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Payroll and labour compliance

Saudi payroll compliance: GOSI, WPS and end of service

The Saudi Arabia country pack works out GOSI for Saudi and non-Saudi staff, builds the WPS wages file and a GOSI reconciliation report, and calculates the end-of-service award. There is no personal income tax. Rates ship as a starting point that you can override and should confirm with your adviser.

  • GOSI
  • SANED
  • WPS wages file
  • Mudad-style CSV
  • End-of-service award
  • Ramadan hours
Start free HR software in Saudi Arabia
BusinessHRM Country and compliance overview for Saudi Arabia with rule counts, working hours, 1.5 times overtime and 21 days of annual leave rising to 30

Does BusinessHRM calculate GOSI and Saudi payroll?

Yes. The Saudi Arabia pack calculates GOSI on basic plus housing up to SAR 45,000: for Saudis registered before 3 July 2024, 9% annuities and 0.75% SANED from each side plus 2% occupational hazards from the employer; for Saudis registered from 3 July 2024, an annuity rate that steps up each July; and 2% occupational hazards for non-Saudis. It builds the WPS wages file and a GOSI contribution report, and works out the end-of-service award. There is no income tax on salaries, and uploading to Mudad or GOSI stays with you.

Saudi Arabia at a glance

Income tax
None on salaries
GOSI base
Basic + housing, capped at SAR 45,000
Legacy Saudis
9.75% employee, 11.75% employer
New-system annuity
9.5% (Jul 2025), 10% (Jul 2026), 10.5% (Jul 2027), 11% (Jul 2028) each side
Non-Saudis
2% occupational hazards, employer only
Overtime
1.5x, up to 720 hours a year
Ramadan
6 hours a day, 36 a week for employees who observe it
Notice
Employer 60 days, employee 30 days

What the Saudi Arabia pack covers

Tax, contributions and labour rules on every pay run

  • GOSI for every employee

    The base is basic plus housing, up to SAR 45,000. Saudis registered before 3 July 2024 pay 9% annuities and 0.75% SANED each side plus 2% occupational hazards from the employer. Saudis registered from 3 July 2024 follow the pension share that steps up each July. Non-Saudis carry 2% occupational hazards, employer only.

  • WPS wages file

    Each run can export the WPS wages file in the bank format, or in a Mudad-style CSV layout to check against your portal before upload.

  • End-of-service award

    Half a month's pay per year for the first five years and a full month after that, with the reduced fractions on resignation and no award on dismissal for cause.

  • Working time and Ramadan hours

    8 hours a day and 48 a week by default, 6 and 36 in Ramadan for Muslim employees (a flag per employee), overtime at 1.5 times and a Friday to Saturday weekend.

  • Leave entitlements

    21 days' annual leave rising to 30 after five years, 120 days' sick leave in three pay bands, 12 weeks' maternity, paternity, marriage, bereavement and Hajj leave.

  • Iqama and IDs

    National ID, iqama, border number, GOSI number, work permit and medical insurance are stored on each profile and masked for anyone without permission.

End-of-service award loaded for Saudi Arabia
SituationAward
Termination by the employerHalf a month's pay per year for the first 5 years, then a full month per year
Resignation under 2 yearsNo award
Resignation after 2 to 5 yearsOne third of the award
Resignation after 5 to 10 yearsTwo thirds of the award
Resignation after 10 yearsThe full award

Figures as loaded in the app on 3 November 2026. Each rule carries its effective dates and source, and you can override any figure from a date of your choice. Confirm them with your adviser.

Leave entitlements loaded for Saudi Arabia
LeaveEntitlement
Annual21 days, 30 after 5 years with the same employer
Sick120 days: 30 full pay, 60 at 75%, 30 unpaid
Maternity12 weeks
Marriage5 days
Hajj10 to 15 days

Figures as loaded in the app on 3 November 2026. Each rule carries its effective dates and source, and you can override any figure from a date of your choice. Confirm them with your adviser.

Where you set it up, and what it produces

Real screens from a demo workspace. Settings live under Settings, Country and compliance and under Payroll settings, Tax and contributions.

BusinessHRM Country and compliance overview for Saudi Arabia with rule counts, working hours, 1.5 times overtime and 21 days of annual leave rising to 30
Country and compliance for Saudi ArabiaRule counts, working hours, overtime and annual leave for the kingdom, each with its source.
BusinessHRM payroll Exports page listing bank and statutory files by country, including Australia ABA and STP and Pakistan IBFT, FBR section 149, Annex-C, EOBI and PESSI files
WPS and GOSI filesThe WPS wages file in the bank layout or a Mudad-style CSV, and a GOSI contribution report to reconcile against the portal.

Statutory IDs on each employee profile

  • Saudi national ID
  • Iqama
  • Border number
  • GOSI subscriber number
  • Work permit (Qiwa)
  • Health insurance (CCHI)
  • Passport

Stored encrypted, format-checked and masked for anyone without permission to reveal them.

Files BusinessHRM builds for a Saudi payroll run

  • WPS wages file (SAR), bank format or Mudad-style CSV
  • GOSI reconciliation report (GOSI itself takes no file upload)
  • PDF payslips with GOSI lines

Files are built from a locked pay run on the Exports page. A contribution register of employee and employer amounts per scheme exports to CSV.

How to switch on the Saudi Arabia pack

  1. 1Open Settings, then Country and compliance, and choose Saudi Arabia (and the province, state or emirate) for the company or for each office.
  2. 2In Payroll settings, open Tax and contributions and switch the calculations on. They stay off until you do.
  3. 3Add each employee's tax inputs and statutory IDs on their profile, and override any rate the pack ships with if your adviser tells you to.
  4. 4Run payroll in SAR. Every payslip shows the tax and contribution lines, and the export screen builds the bank and statutory files for that run.

Not included for Saudi Arabia

Direct connections to Mudad, Qiwa, Muqeem or the GOSI portal, and any Nitaqat or Saudization calculation.

Not legal advice. Rules marked to verify in the app have not yet been checked against the official source.

Other country packs

All compliance by country How the compliance engine works Payroll HR software in Saudi Arabia

Saudi Arabia payroll compliance questions

Does BusinessHRM calculate GOSI?

Yes. With the Saudi pack on, GOSI is calculated on basic plus housing up to SAR 45,000, with separate rates for Saudis registered before and after 3 July 2024 and occupational hazards for non-Saudis.

Can it produce a WPS file for Saudi payroll?

Yes. Each payroll run in SAR can export a WPS wages file in the bank format or a Mudad-style CSV layout, which you upload yourself.

Is the end-of-service award calculated?

Yes. The separation wizard works out the award at half a month per year for the first five years and a full month after, with the resignation fractions applied.

How does BusinessHRM know which GOSI system applies?

From each Saudi employee's GOSI registration date, or the joining date if that is missing. Registered before 3 July 2024 means the legacy rates; on or after it means the new system with the stepped annuity rate.

Is Nitaqat or Saudization calculated?

No. The pack notes that a Saudi counts fully for Nitaqat from SAR 4,000, but no quota calculation is done.

Run Saudi Arabia payroll with the rules built in

Start free, choose your country and region, switch on tax and contributions, and preview a pay run before anything is paid or filed.

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