Running payroll in Saudi Arabia: GOSI, Mudad and wage protection
Saudi payroll has three moving parts: the wage itself, GOSI contributions, and the wage protection file in Mudad. Here is how they fit together and the monthly routine that keeps a small company compliant.
The short answer
Pay wages monthly, through a bank, on time. Deduct GOSI from Saudi employees (9.75% of basic plus housing for those registered before 3 July 2024) and pay the employer share on top. Upload the payroll to Mudad so the wage protection system can match it against the bank transfers.
Example: a Saudi with SAR 10,000 basic, SAR 2,500 housing and SAR 1,000 transport has SAR 1,218.75 deducted and costs the employer SAR 1,468.75 in GOSI. An expat on the same pay has nothing deducted; the employer pays SAR 250.
GOSI rates
| Branch | Saudi employee | Employer (Saudi) | Employer (expat) |
|---|---|---|---|
| Annuities (pension) | 9% (new system: 9.5% from July 2025, 10% from July 2026) | Same as employee | – |
| Unemployment insurance (SANED) | 0.75% | 0.75% | – |
| Occupational hazards | – | 2% | 2% |
Contributions are on basic salary plus housing allowance, capped at SAR 45,000 a month (minimum SAR 1,500 for Saudis). GCC nationals follow their home scheme.
The new Social Insurance Law
Saudis who first registered with GOSI on or after 3 July 2024 are under the new system: the annuities rate rises by 0.5% on each side every 1 July until it reaches 11% in July 2028. Those registered before keep 9%. Your payroll needs to know each Saudi employee’s registration date.
Wage protection and Mudad
- Wages must be paid through a Saudi bank to the employee’s own account
- The payroll file is uploaded to Mudad, which matches it against the bank transfers and GOSI records
- Pay is expected by the date in the contract; summaries of HRSD rules describe payment by the 10th of the following month at the latest
- From March 2025 employers have a 30-day window to upload the wage file; missing it counts as non-compliance
- Non-compliance can stop services in Qiwa (visas, transfers, renewals) and lead to fines
A monthly payroll checklist
- Close attendance, overtime and leave
- Update GOSI for joiners, leavers and wage changes before the month’s contributions are calculated
- Run payroll: wage, overtime (Article 107), deductions and GOSI
- Pay through the bank by the due date
- Upload the wage file to Mudad within the window and fix any mismatch it flags
- Pay the GOSI invoice and keep the receipt
Free tools for this
Sources
- General Organization for Social Insurance (GOSI)
- Mudad: wage protection platform
- Silberson: GOSI contributions under the new Social Insurance Law
- Ministry of Human Resources and Social Development (HRSD): Labor Law
Rules change. Check the official text, or ask your accountant or lawyer, before you rely on a figure.
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