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Transport Allowance

Transport Allowance

A monetary benefit paid to employees to cover commuting or travel costs — a standard element of Saudi compensation packages.

Transport allowance is a standard component of employee compensation packages in Saudi Arabia, typically paid as a fixed monthly cash amount. For Saudi national government employees the transport allowance rate is prescribed by regulation, while private sector rates vary by employer and industry. Unlike housing allowance, transport allowance is generally not included in GOSI base contribution calculations or End-of-Service Benefit calculations for private sector employees, though this depends on how it is classified in the employment contract. Inclusive Solutions advises on transport allowance structuring and market benchmarking.