Module: PYSA | Molga: 99 | Currency: SAR | Group: GCC
Includes: 3 case studies | GOSI (social insurance) | EOSB | WPS (Mudad) | No income tax
🧭 The Gross-to-Net Pipeline
Gross Pay (/101) → GOSI EE Deduction (nationals + resident expats differently) → NET PAY (/560)
Saudi Arabia has no personal income tax. GOSI applies to Saudi nationals at 10% EE + 11.75% ER. Expats: 2% ER only (Occupational Hazard).
📌 Saudi Payroll Configuration Anchors
- No personal income tax
- GOSI (General Organization for Social Insurance): Saudi nationals 10% EE + 11.75% ER
- Expat GOSI: 2% ER Occupational Hazard only (no EE deduction)
- EOSB: ½ month/year (1–5 yrs); 1 month/year (5+ yrs) based on last wage
- WPS: Mudad system — IBAN mandatory
- Wage Protection System mandatory for private sector
👥 Case Studies
Parameter | Case A: Expat Engineer | Case B: Saudi National | Case C: Senior Manager |
Nationality | Expat | Saudi | Expat |
Monthly Salary | SAR 12,000 | SAR 15,000 | SAR 40,000 |
GOSI EE | 0 | 10% = SAR 1,500 | 0 |
GOSI ER | 2% = SAR 240 | 11.75% = SAR 1,762 | 2% = SAR 800 |
Income Tax | 0 | 0 | 0 |
Net Pay | SAR 12,000 | SAR 13,500 | SAR 40,000 |
🏗️ Step 1 — Salary Structure & Wage Types (SAR)
Component | WT | Case A Monthly | Notes |
Basic Salary | SA01 | SAR 7,000 | GOSI base (nationals) |
Housing Allowance | SA10 | SAR 3,000 | 25% of basic |
Transport Allowance | SA20 | SAR 800 | Flat |
Other Allowance | SA30 | SAR 1,200 | ㅤ |
GROSS /101 | ㅤ | SAR 12,000 | ㅤ |
🔢 Step 2 — GOSI Calculation
Saudi National: GOSI base = Basic + Housing + Trans + Other (full gross)
- EE: 10% →
/3S1; ER: 11.75% →/3S2
- Annual max contribution ceiling: SAR 45,000/month gross
Expat: ER only 2% Occupational Hazard →
/3S3🔢 Step 3 — EOSB (End of Service Award)
Service | Formula | Example (Basic SAR 7,000) |
1–5 years | ½ month/year × Last wage | 3 yrs × SAR 3,500 = SAR 10,500 |
5+ years | 1 month/year × Last wage | 7 yrs: (5×3,500)+(2×7,000) = SAR 31,500 |
🔢 Step 4 — Net Pay Summary
ㅤ | Expat | Saudi National |
Gross /101 | SAR 12,000 | SAR 15,000 |
GOSI EE /3S1 | 0 | −1,500 |
Net /560 | SAR 12,000 | SAR 13,500 |
🏷️ Key Wage Types
WT | Description | Payslip? |
SA01 | Basic Salary | ✅ |
/101 | Gross | Internal |
/3S1 | GOSI EE 10% | ✅ |
/3S2 | GOSI ER 11.75% | Informational |
/3S3 | Expat OH 2% ER | Internal |
/560 | Net Pay | ✅ |
SuccessLabs Academy | SAP ECP Saudi Arabia Payroll (PYSA) | Gross-to-Net Playbook