Salary Calculator (KSA)
Calculate your net take-home salary in Saudi Arabia. No income tax — only GOSI deduction. Supports Saudi and non-Saudi employees with step-by-step breakdown.
💰 Salary Calculator (KSA)
Monthly Salary Summary
Employer Cost
Annual Summary
Step‑by‑Step
Saudi Arabia Salary Structure
Salaries in Saudi Arabia follow a distinctive structure shaped by the Kingdom's zero personal income tax policy and GOSI social insurance system. Unlike most countries, employees in KSA keep virtually all of their gross salary — the only mandatory deduction is GOSI for Saudi nationals.
A typical Saudi employment contract specifies a total package broken down into clearly defined components, each with different implications for social insurance, end-of-service benefits, and overtime calculations.
No Income Tax — Why Saudi Arabia?
Saudi Arabia is one of the few countries in the world with zero personal income tax. This applies to all individuals — Saudi nationals and expatriates alike. The Kingdom's revenue comes primarily from:
- Oil revenue — Saudi Aramco and petroleum exports
- VAT (15%) — Value Added Tax on goods and services (calculate VAT here)
- Zakat — Islamic wealth tax on Saudi-owned businesses
- Corporate Income Tax — 20% on non-Saudi owned businesses (not individuals)
- Government fees — Iqama, dependent levies, municipal fees
Salary Components Explained
| Component | Typical Range | In GOSI Base? | In EOSB Calc? |
|---|---|---|---|
| Basic Salary | 40–60% | ✅ Yes | ✅ Yes |
| Housing Allowance | 25–35% | ✅ Yes | ✅ Yes |
| Transport Allowance | 5–10% | ❌ No | ❌ No |
| Food/Meal Allowance | 0–5% | ❌ No | ❌ No |
| Phone/Internet | 0–3% | ❌ No | ❌ No |
| Overtime | Varies | ❌ No | ❌ No |
| Annual Bonus | Varies | ❌ No | ❌ No |
| Commission | Varies | ❌ No | ❌ No |
Basic Salary
The basic salary is the fixed monthly amount agreed in the employment contract, excluding all allowances and benefits. It is the most important component because it forms the foundation for:
- GOSI contributions — calculated on basic + housing (GOSI Calculator)
- End of Service Benefit — calculated on the "actual wage" which includes basic + housing (EOSB Calculator)
- Overtime pay — 150% of hourly basic rate
- Leave encashment — based on full salary
Housing Allowance
Employers typically provide either a housing allowance (cash) or employer-provided accommodation. The housing allowance is usually 25–35% of basic salary but can vary significantly by company and role. Key points:
- Included in the GOSI calculation base
- Included in the EOSB "actual wage" calculation
- If employer provides housing instead, the notional value may be used for GOSI
Transport Allowance
Transport allowance covers commuting expenses and is typically 5–10% of basic salary. It is NOT included in GOSI or EOSB calculations, making it a pure take-home benefit.
GOSI Deduction — The Only Salary Deduction
| Nationality | Employee Deduction | Employer Contribution | Net Impact |
|---|---|---|---|
| Saudi National | 9.75% of (Basic+Housing) | 11.75% of (Basic+Housing) | Employee takes home 90.25% of GOSI base + all other allowances |
| Non-Saudi (Expat) | 0% — no deduction | 2% (hazards only) | Employee takes home 100% of gross salary |
For detailed GOSI calculations, use our GOSI Calculator.
Net Salary Calculation Formula
For Saudi Nationals
Where GOSI Base = min(Basic + Housing, SAR 45,000)
Example: SAR 8,000 basic + SAR 2,500 housing + SAR 800 transport = SAR 11,300 gross
GOSI = SAR 10,500 × 9.75% = SAR 1,023.75
Net = SAR 11,300 − SAR 1,023.75 = SAR 10,276.25
For Non-Saudi Employees
Example: SAR 8,000 basic + SAR 2,500 housing + SAR 800 transport = SAR 11,300 gross
Net = SAR 11,300
Worked Examples
Example 1: Mid-Level Saudi Employee — SAR 15,000 Package
| Component | Amount |
|---|---|
| Basic Salary (60%) | SAR 9,000 |
| Housing Allowance (25%) | SAR 3,750 |
| Transport (10%) | SAR 1,500 |
| Other (5%) | SAR 750 |
| Gross Salary | SAR 15,000 |
| GOSI Base (Basic + Housing) | SAR 12,750 |
| Employee GOSI (9.75%) | −SAR 1,243.13 |
| Net Salary | SAR 13,756.87 |
Example 2: Non-Saudi Engineer — SAR 15,000 Package
| Component | Amount |
|---|---|
| Gross Salary | SAR 15,000 |
| Employee GOSI | SAR 0 (not applicable) |
| Net Salary | SAR 15,000 |
| Employer pays: Hazards (2% of 12,750) | SAR 255 |
Example 3: Senior Saudi Manager — SAR 40,000 Package
| Component | Amount |
|---|---|
| Basic (60%) | SAR 24,000 |
| Housing (25%) | SAR 10,000 |
| Transport + Other | SAR 6,000 |
| Gross Salary | SAR 40,000 |
| GOSI Base (Basic + Housing) | SAR 34,000 |
| Employee GOSI (9.75%) | −SAR 3,315 |
| Net Salary | SAR 36,685 |
Minimum Wage in Saudi Arabia
| Category | Minimum Wage | Notes |
|---|---|---|
| Saudi Nationals | SAR 4,000/month | Required for Nitaqat (Saudization) count |
| Non-Saudi Workers | No statutory minimum | Market-driven; varies by nationality and role |
The SAR 4,000 minimum wage for Saudis was introduced to strengthen the Saudization (Nitaqat) program. Employees earning below SAR 4,000 are not counted toward a company's Saudization percentage, incentivizing employers to meet the threshold.
Wage Protection System (WPS)
The Wage Protection System (نظام حماية الأجور) is a mandatory digital system managed by the Ministry of Human Resources and Social Development (MHRSD). Key features:
- Electronic payment only — all salaries must be paid through approved Saudi bank transfers
- Payment in SAR — salaries must be paid in Saudi Riyals
- Monthly reporting — employers must upload salary payment files to the WPS portal
- Penalties — late or missing payments trigger alerts and can result in suspension of work permits and services
- Proof of payment — WPS records serve as official evidence in labor disputes
Overtime Rules
| Feature | Rule |
|---|---|
| Normal hours | 8 hours/day, 48 hours/week |
| Ramadan (Muslim) | 6 hours/day, 36 hours/week |
| Overtime rate | 150% of hourly wage (base + 50% premium) |
| Maximum overtime | 720 hours per year |
| In GOSI calculation? | ❌ No — overtime is excluded |
Annual Leave & Entitlements
| Entitlement | Duration | Pay |
|---|---|---|
| Annual Leave (<5 years) | 21 days | Full salary |
| Annual Leave (5+ years) | 30 days | Full salary |
| Sick Leave | 120 days/year | 100% first 30 days, 75% next 60, unpaid last 30 |
| Marriage Leave | 5 days | Full salary |
| Paternity Leave | 3 days | Full salary |
| Maternity Leave | 10 weeks (70 days) | Full salary |
| Bereavement Leave | 5 days | Full salary |
| Hajj Leave | 10-15 days (once) | Full salary |