Employer Cost of Hiring Calculator

On the pre-3-July-2024 registration track, which still covers most current employees, employers pay 11.75% of contributable wage for a Saudi national (9% annuities/pension, 2% occupational hazards, 0.75% SANED unemployment insurance) and 2% for an expatriate (occupational hazards only, no pension or SANED coverage). Contributable wage is basic salary plus housing allowance, capped at SAR 45,000/month. Employees registered under the newer Social Insurance Law from July 2024 onward sit on a higher, phased-in rate.

Article 84 of the Labor Law entitles every departing employee, Saudi national or expat, to an end-of-service benefit: half a month's wage per year for the first 5 years, a full month's wage per year after that, uncapped. It's paid as a lump sum by the employer at exit, not funded through GOSI or any external scheme, so it's a real, growing liability that sits on the employer's books until someone leaves. Provisioning for it annually (this calculator models that as an ongoing accrual) avoids a large unbudgeted cash outflow when a long-tenured employee eventually departs.

Nitaqat is the Ministry of Human Resources and Social Development's (HRSD) Saudization quota system, it bands companies by how much of their workforce is Saudi national, relative to sector-specific targets. Falling below your required band restricts new work visa issuance and permit renewals for expatriate hires, which is an indirect but often larger cost than any direct payroll saving from hiring expats over nationals. The 2026 cycle raised sector quotas and removed the middle Yellow tier, so companies previously coasting in a mid-band now face a stricter pass/fail line. This calculator models direct payroll cost only, budget separately for Saudization compliance risk if your workforce is expat-heavy.

No. It depends on registration date. Employees registered before 3 July 2024 sit on the 11.75% employer rate used in this calculator. Employees registered on or after that date follow the New Social Insurance Law, a higher combined employer-plus-employee rate that's being phased in through 2028. If you're hiring newly, confirm your exact rate with GOSI directly rather than assuming the older figure applies.

Not directly, they're modelled here as GOSI plus EOSB accrual only, since the expat levy varies by company size and Saudization band and dependent health cover varies by insurer and family size. Both are real additional costs for an expat-heavy workforce, factor them in separately on top of the figures shown here for a full budget.

Because the Article 84 EOSB accrual rate itself changes after year 5, half a month's wage per year for years 1-5, a full month's wage per year from year 6 onward. A long-tenured employee costs more per year in EOSB accrual alone than a newer hire on the identical salary, which is worth factoring into retention and budgeting decisions for senior staff.

Just the employer's ongoing annual accrual, modelled as the marginal EOSB earned in the current year of tenure, not the full lump sum an employee would receive on exit. For the actual payout figure at a specific tenure and end type (termination vs resignation), see our dedicated GOSI & EOSB Calculator.