JULY 2025 – SAUDI ARABIA
GOSI CONTRIBUTION RATE FOR NEW EMPLOYEES
It is important that employers note the following:
Reminder of increased GOSI contribution rates for new employees
Following our CRS News Flash of 30 August 2024 regarding the New Social Insurance Law and the employer and employee social security retirement contributions under the General Organisation for Social Insurance (GOSI), employers are reminded that the contribution rates for both employees and employers will gradually increase by 0.5% annually until 2028.
As of 1 July 2025, both employer and employee contribution rates have increased from 9% to 9.5%. The new rate applies exclusively to new employees entering the workforce in both the public and private sectors who have no prior contribution periods under the Civil Pension Law or the Social Insurance Law before 3 July 2024.
This adjustment forms part of the gradual rate escalation schedule outlined in the 2024 reform, which will eventually bring total contributions to 11% for both employer and employee.
To view the original GOSI press release, follow the link.
