Saudi GOSI Social Insurance Guide: Contributions & Pension in Full
Every Saudi employee sees a "GOSI" deduction on their payslip, but few understand how this monthly contribution turns into an actual retirement pension years later. This guide explains the whole system, from your first day of contribution to retirement day.
Guide steps
How much is deducted from your salary monthly right now, and how much the employer pays on top for you.
What your expected monthly pension will be at retirement, based on your average wage and years of contribution.
The three insurance branches: what does each one cover?
Your GOSI contribution isn't a single number; it's split across three separate branches: the Pensions branch (9% employee + 9% employer traditionally), the main source of your future retirement pension; the SANED branch (0.75% from each side), which is unemployment insurance, paying temporary compensation if you lose your job for reasons beyond your control; the Occupational Hazards branch (2% on the employer only), covering work injuries, and applies to both Saudis and non-Saudis alike (it's the only branch applied to non-Saudis).
The traditional system vs. the new system: which one are you on?
Since July 3, 2024, there have been two tracks: anyone who was contributing to GOSI or civil-service retirement before this date stays on the traditional system (a flat 9% pension rate from each side, with a pension calculated at 2.5% of the average wage per year of contribution, reaching a maximum replacement rate of 100% after exactly 40 years of contribution). Anyone who entered the labor market for the first time after this date with no prior periods is subject to the new system, which starts at the same rate then gradually rises 0.5% per year until it reaches 11% from each side by 2028, with a different pension rate of 2.25% per year of contribution (instead of 2.5%) calculated on the highest/last 180 months of contribution. Check your actual system via the "Taminaty" app, because it fundamentally changes your future expectations.
Conditions for monthly pension entitlement
To receive a monthly pension (not a one-time payout), you generally need to complete 120 months (10 years) of contribution upon reaching statutory retirement age, or 300 months (25 years) for early retirement regardless of age. Anyone who hasn't met this minimum upon reaching retirement age and doesn't return to contributing is typically paid a one-time payout instead of a continuous monthly pension — a fundamental difference worth planning for early.
Quick tips
- Check your actual system (traditional or new) via the "Taminaty" app instead of assuming — the difference fundamentally changes your future rate.
- The wage subject to contribution is capped at a maximum of 45,000 SAR per month; any salary increase above this cap doesn't raise your pension contribution.
- If you're planning to leave the labor market temporarily, first check the effect this has on your years of contribution continuing to count toward the minimum (120 months).
- SANED (unemployment insurance) has conditions and a limited payout period — don't rely on it as a permanent salary substitute when you lose your job.
Frequently asked questions
What's the difference between the GOSI contribution calculator and the pension calculator?
The contribution calculator (gosi-saudi) calculates the amount deducted from your salary monthly right now. The pension calculator (gosi-pension) estimates your future monthly pension at retirement based on your average wage and years of contribution. The first is about the present, the second about the future.
Can I withdraw from my GOSI balance before retirement?
There's no direct withdrawal from Pensions-branch contributions as with some investment funds. Contributions are cumulative and used to calculate your pension upon reaching retirement age or other entitlement cases (disability, death), not a personal account eligible for partial withdrawal.
What happens to my contributions if I leave work before retirement age?
They remain registered on your GOSI account and are added to any future contribution period if you return to work. If you don't meet the minimum entitlement (120 months) upon reaching retirement age and don't return to contributing, you may be entitled to a one-time payout instead of a monthly pension.
Does SANED (unemployment insurance) apply to all cases?
No, SANED is for those who lost their job for reasons beyond their control (such as termination by the employer), and has minimum contribution conditions and a limited payout period. Voluntary resignation typically doesn't qualify for SANED except in specific exceptional cases.
Why does my future rate differ from my colleague's at the same company?
Most likely because you're on two different systems depending on your first contribution date: anyone contributing before July 3, 2024 stays on the traditional system at a flat rate, while anyone who joined for the first time after that date is subject to the new, tiered system that gradually rises until 2028.