As of October 2026, a Saudi employee pays 9.75% or 10.75% depending on the first registration date, and the employer pays 11.75% or 12.75%. For non-Saudis the employer pays 2% for occupational hazards only, and every rate applies to basic salary plus housing allowance, capped at SAR 45,000 a month.
Step by step
- 1
Set the contributory wage
Basic salary plus housing allowance, capped at SAR 45,000 a month. Other allowances such as transport and phone are not included.
- 2
Registered before 3 July 2024
The employee pays 9% for pensions and 0.75% for SANED, and the employer pays 9% for pensions, 0.75% for SANED and 2% for occupational hazards.
- 3
New entrants from that date
The pension rate on each side has been 10% since 1 July 2026 and rises 0.5% every July to 11% in July 2028, with the same SANED and occupational hazards rates.
- 4
Non-Saudi employees
Nothing is deducted from their pay, and the employer pays 2% for occupational hazards.
- 5
Calculate the full cost
Cost of the employee to the company = gross salary + employer share. This is the figure that goes into the payroll budget.
Applying a 9% pension rate to every Saudi employee has been a common mistake since July 2025, because for employees with no contribution periods before 3 July 2024 the rate rises every July.
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