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Labor Laws
GOSI's dual-system structure explained — fixed 21.5% for pre-July 2024 registrants vs. the rising New System now at 22.5%, climbing to 24% by 2028.
GOSI 2026: New System vs Existing System Explained
GOSI now runs two parallel contribution structures based on when an employee was first registered, with the dividing line set at 3 July 2024.
Existing System (registered before 3 July 2024)
Fixed combined rate of 21.5% — employer 11.75%, employee 9.75% — with no further scheduled increase.
New System (registered after 3 July 2024)
January–June 2026: 22.5% combined (employer 12.25%, employee 10.25%)
From July 2026: 23.5% combined (employer 12.75%, employee 10.75%)
The rate rises 0.5% annually through 2028
Contribution base and cap
The base is basic salary plus housing allowance only (transport and other allowances are excluded), capped at SAR 45,000 per month.
Expatriates
Employers pay 2% only (occupational hazard coverage) for expatriate staff — there is no employee-side contribution and no pension or SANED (unemployment insurance) entitlement for non-Saudis.
Frequently Asked Questions
How do I know which system applies to an employee?
It's determined by the date of their first-ever GOSI registration, not by when they joined your company. Employees registered before 3 July 2024 stay on the Existing System rate indefinitely.
Is the New System rate fixed?
No. It rises 0.5% annually through 2028, so payroll teams need to check the current rate each July.
Do expatriates get pension contributions?
No. Expatriates are covered only for occupational hazard insurance — they don't participate in the pension or SANED unemployment branches.
How Inclusive Solutions helps
We classify every employee correctly under the 2026 dual-system rules and manage monthly filings. Try our salary calculator or talk to our team.
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