Money · المال

Saudi Arabia Salary Breakdown

Split a Saudi Arabia gross monthly salary into its typical basic, housing, transport and allowance components - with GOSI pension folded in for Saudi Arabia Nationals.

Last reviewed 27 April 2026· Source: MoHRE pay guidance & GOSI
The 60/25/10/5 split is widely used but not legally fixed - your contract is what counts. Saudi Arabia Nationals contribute 5% to GOSI; employers add 12.5-15%.
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How Saudi Arabia salaries are structured

Most Saudi Arabia employers split a gross salary into basic (typically 60%) plus housing, transport and other allowances. The split matters because end-of-service gratuity, overtime and notice pay are all calculated on the basic component alone - so a high basic is worth more long-term than a high allowance.

Saudi Arabia does not levy personal income tax. Expats keep 100% of their gross salary; Saudi Arabia Nationals contribute 9.75% of pay to GOSI, which the employer pays 11.75% to GOSI plus 1% Sanad disability insurance.

Worked example

A gross salary of SAR 20,000 at the standard split is: basic SAR 12,000, housing SAR 5,000, transport SAR 2,000, other SAR 1,000. An expat takes home all 20,000; a Saudi Arabia National takes home SAR 19,000 after the 9.75% GOSI deduction.

Quick formulas

Basic = gross × 0.60.
Housing = gross × 0.25.
Transport = gross × 0.10.
Other = gross × 0.05.
GOSI (Saudi Nationals only) = gross × 0.0975.
Take-home = gross − GOSI.

Frequently asked questions

What is the typical Saudi Arabia salary structure?
A common split is 60% basic, 25% housing, 10% transport and 5% other allowances. Employers vary, but basic salary is what determines gratuity and overtime.
Is salary taxed in Saudi Arabia?
No. Saudi Arabia does not levy personal income tax. Take-home pay equals gross pay minus pension contributions for Saudi Arabia Nationals.
How much do Saudi Arabia Nationals contribute to GOSI?
Saudi Arabia Nationals contribute 9.75% of their salary; employers contribute an additional 12.5-15% under GOSI rules.
Why does the basic component matter?
Gratuity, overtime and notice pay are calculated on basic salary alone - so a higher basic means a higher end-of-service payout.
Are bonuses or commissions taxable?
No personal income tax applies. However, bonuses are typically excluded from basic-salary-based calculations like gratuity.

Reference only. The 60/25/10/5 split is a market convention - your offer letter is the source of truth. GOSI rates are based on the law in force at April 2026.