What are the current GOSI contribution rates in Saudi Arabia?

For Saudi nationals: employer contributes 9% and employee contributes 9% on basic salary (total 18%). For expatriates: employer contributes 2% on basic salary. Additional 1% employer contribution for occupational hazard insurance up to certain limits.

How is end-of-service benefit calculated in KSA?

Under Saudi Labour Law, EOS benefit is half-month of basic salary for each of the first 5 years, and one month's basic salary for each subsequent year. The employee is entitled to the full benefit upon retirement, termination without cause, or permanent disability.

What is Qiwa and how does it affect KSA payroll compliance?

Qiwa is the MHRSD unified digital platform for employee contract management, Nitaqat compliance, and salary protection. Employers must maintain updated employment contracts and salary records on Qiwa.

KSA Payroll Compliance Guide | GOSI, ZATCA, Saudi Labour Law

Quick answer

Saudi Arabia payroll compliance requires employers to register employees with GOSI and remit monthly contributions (9% employer, 9% employee on basic salary for Saudi nationals; 2% employer for expatriates), maintain records aligned to ZATCA e-invoicing requirements, and comply with the Saudi Labour Law (Royal Decree M/51) covering working hours, leave, end-of-service benefits, and termination. OfficeKit HR automates GOSI calculations, payroll reporting, and multi-country compliance.

Key regulations in Saudi Arabia

General Organization for Social Insurance (GOSI)

Mandatory registration and monthly contribution remittance: 9% employer and 9% employee for Saudi nationals on basic salary, 2% employer for expatriates. Contributions cover occupational hazards, disability, and retirement benefits.

ZATCA E-Invoicing Alignment

ZATCA (Zakat, Tax and Customs Authority) requires electronic invoicing and record-keeping. Payroll reports must align with ZATCA requirements for accurate record-keeping and audit readiness.

Saudi Labour Law (Royal Decree M/51)

Governs working hours (48 hours/week), overtime (150% rate), annual leave (21 days, increasing to 30 days after 5 years), sick leave (up to 120 days), end-of-service benefits (half-month salary for first 5 years, one month thereafter), and termination rules.

Qiwa Compliance

Qiwa is the MHRSD platform for managing employee contracts, WPS-like salary reporting, and compliance with Saudization (Nitaqat) programme requirements. Employers must maintain up-to-date records on Qiwa.

Compliance checklist for Saudi Arabia

Set up salary components (basic, housing, transport, allowances) in payroll system

Configure GOSI contribution rates: 9% employer + 9% employee (Saudi), 2% employer (expat)

Maintain Qiwa records for employee contracts and Nitaqat compliance

Run monthly payroll with auto-calculated GOSI deductions and employer contributions

Generate GOSI contribution reports and remit by monthly deadlines

Prepare ZATCA-aligned payroll records for audit purposes

Calculate end-of-service benefits (half-month for first 5 years, one month thereafter)

Track Saudi labour law leave entitlements (annual leave, sick leave, Hajj leave)

Maintain compliance registers for MHRSD inspections

How OfficeKit HR helps with Saudi Arabia compliance

OfficeKit HR centralises employee records, attendance, leave, and payroll in one system — reducing manual data transfer and compliance errors. Payroll rules for Saudi Arabia are configured within the platform, and statutory filings are generated from the same data used for pay runs.

Multi-country groups running entities in India and the GCC can manage all payroll compliance from a single HRMS, with region-specific rules applied per entity.

KSA Payroll Compliance Guide