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🇸🇦 Saudi Arabia - Insurance Academy

Learn how Social Insurance is calculated step-by-step with examples for Kuwait, Saudi Arabia, UAE and GCC extension protection. Saudi Arabia

Last reviewed: 18 May 2026

Educational estimate lamang ito. Social insurance rates and caps may change by subscription date, nationality, sector and contributory wage. Always verify with the official authority.

What is social insurance?

Social Insurance Academy Learn how Social Insurance is calculated step-by-step with examples for Kuwait, Saudi Arabia, UAE and GCC extension protection.

What wage is contributory?

  • In Saudi Arabia, the contributory wage generally starts with basic salary + actual/deemed housing allowance.
  • Choose existing or new 2026 model depending on subscription history.

Formula

Contribution = min(Contributory Wage, Cap) × Rate

Difference from end-of-service

Educational estimate lamang ito. Social insurance rates and caps may change by subscription date, nationality, sector and contributory wage. Always verify with the official authority.

Worked examples

Example 1: Saudi employee under existing 2026 model

Inputs

basic8,000 SAR
housing2,000 SAR
base10,000 SAR
employee_rate9.75%
employer_rate11.75%
cap45,000 SAR

Calculation steps

  1. Contributory wage: 8,000 + 2,000 = 10,000 SAR
  2. Employee: 10,000 × 9.75% = 975.00 SAR
  3. Employer: 10,000 × 11.75% = 1,175.00 SAR
  4. Employer cost: 10,000 + 1,175 = 11,175 SAR

Example 2: Saudi new 2026 model

Inputs

basic8,000 SAR
housing2,000 SAR
base10,000 SAR
employee_rate10.25%
employer_rate12.25%

Calculation steps

  1. Employee: 10,000 × 10.25% = 1,025.00 SAR
  2. Employer: 10,000 × 12.25% = 1,225.00 SAR
  3. Difference vs existing: Employee +50 SAR, Employer +50 SAR

Example 3: Non-Saudi expatriate

Inputs

wage10,000 SAR
employee_rate0%
employer_hazard2%

Calculation steps

  1. Employee: 0.00 SAR
  2. Employer occupational hazards: 10,000 × 2% = 200.00 SAR

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