How it works
There is no personal income tax in Saudi Arabia for employees, Saudi or foreign. Zakat and corporate tax apply to businesses, and 15% VAT applies when you buy goods, but nothing is withheld from a salary for income tax. What can be deducted is the employee share of GOSI (General Organization for Social Insurance).
Saudi nationals: annuities + SANED
Under the Social Insurance Law (in force since 3 July 2024) the annuities (pension) contribution is shared 50/50 between employer and employee and rises by one percentage point of total (0.5 each) every July until it reaches 22% in total (11% each). For Saudis first registered on or after 3 July 2024 the total was 18% in the first year, 19% from July 2025 and 20% from 1 July 2026, so the employee pays 10%. Saudis who were already insured before that date stay on the old 9% employee rate. On top, SANED unemployment insurance costs 1.5% in total, i.e. 0.75% for the employee. Contributions are calculated on basic salary plus housing allowance, up to a maximum of SAR 45,000 per month.
Expatriates
Non-Saudi employees pay nothing to GOSI from their salary. Their employer pays 2% for occupational hazards, which is not deducted from your pay. Your take-home pay is therefore your gross salary. (End-of-service benefits are a separate topic and not calculated here.)
Worked example
Monthly salary SAR 20,000, Saudi registered after 3 July 2024
- Annuities 10%: SAR 2,000 (SAR 24,000 per year)
- SANED 0.75%: SAR 150 (SAR 1,800 per year)
- Net pay: SAR 17,850 per month (SAR 214,200 per year)
For the same SAR 20,000, a Saudi insured before July 2024 pays 9% + 0.75% = SAR 1,950 and takes home SAR 18,050. An expatriate takes home SAR 20,000.
What this calculator leaves out
It assumes your entered salary is your contributory wage (basic salary + housing allowance). If part of your pay is transport, phone or other allowances that GOSI does not count, your real deduction will be lower. Minimum contributory wage rules, voluntary contributions, the employer share (annuities, 0.75% SANED and 2% occupational hazards for Saudis) and employee loans or fines are not included.