Important Update from GOSI – Gradual Increase in Contribution Rates
The General Organization for Social Insurance (GOSI) has announced the implementation of a gradual annual increase in contribution rates for Saudi employees and employers, starting from 1 July 2025.
According to official sources, the contribution will increase by 0.5% annually from the employee and 0.5% from the employer, continuing each year until 2028.
Key Highlights:
- Applies exclusively to Saudi employees enrolled after July 2024.
- The first increase takes effect on 1 July 2025.
- Aims to enhance the long-term sustainability of the pension system.
- HR and Finance teams are advised to prepare and adjust payroll systems accordingly.
Contribution Rate Schedule:
| Year | Employee Rate | Employer Rate | Total Contribution |
| 2024 | 9.75% | 11.75% | 21.5% |
| 2025 | 10.25% | 12.25% | 22.5% |
| 2026 | 10.75% | 12.75% | 23.5% |
| 2027 | 11.25% | 13.25% | 24.5% |
| 2028 | 11.75% | 13.75% | 25.5% |
At Bright Businesses, we stay ahead of regulatory changes to support our partners with full compliance and proactive planning.
