The total cost of employment in Saudi Arabia extends significantly beyond an employee's basic salary. Employers must factor in GOSI employer contributions (12% for Saudi nationals, 2% for expatriates), mandatory health insurance, EOSB accrual, housing allowance (typically 25% of basic salary), transportation allowance, annual leave costs and Iqama processing fees for expatriates. For expatriate employees, relocation costs and annual flight ticket entitlements add further to the total. Understanding the full cost of employment is essential for accurate headcount budgeting and total rewards benchmarking.