🇸🇦 Saudi Arabia: payroll law changes

2 tracked changes · MENAT · sources last checked 1 October 2026

Statutory and legislative payroll changes in Saudi Arabia, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.

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Annuity contribution rises to 10% for new-system GOSI members

Effective July 2026

Under the new Social Insurance Law (Royal Decree M/273), in force from 3 July 2024, the pension rate for employees hired after that date rises by 0.5% on each side every July through 2028.

For the employer

Annuity rate for new-system employees: 10% from July 2026, 10.5% from July 2027, 11% from July 2028.

For the employee

Same annuity rate as employer: 10% from July 2026.
Employees with prior contribution history under the previous laws keep their existing rates.

Source is a consultancy article; GOSI's own site did not return readable content.

Source: Silberson - Saudi Arabia Social Insurance Law 2025 Key Changes · Last verified 1 October 2026

Next annuity step to 10.5%

Effective July 2027 Upcoming

The annuity contribution for employees hired after 3 July 2024 is scheduled to rise to 10.5% on each side in July 2027.

For the employer

10.5% annuity contribution for new-system employees from July 2027.

For the employee

10.5% annuity contribution from July 2027.

Source is a consultancy article.

Source: Silberson - Saudi Arabia Social Insurance Law 2025 Key Changes · Last verified 1 October 2026

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