Saudi Arabia
Worked in Saudi Arabia as an expat? You almost certainly won't get a local state pension — that's reserved for citizens — but you're likely owed an end-of-service gratuity: a lump sum based on your years of service and final salary, paid when you leave. Here's how Saudi Arabia's system works and what to check before you go.
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Overview
Saudi Arabia's pension system is administered by the General Organization for Social Insurance (GOSI), a financially and administratively independent government entity established in 1969.
The system covers private-sector and certain public-sector employees through two main branches: the Annuities Branch (old-age, disability, and survivor pensions — mandatory for Saudi nationals only) and the Occupational Hazards Branch (work-injury coverage — mandatory for all workers regardless of nationality). A separate Civil Retirement Law covers civil servants, and a military retirement system covers armed forces personnel. Foreign workers are excluded from the Annuities Branch and receive only occupational hazard coverage through GOSI; their primary retirement-type benefit is the mandatory End-of-Service Benefit (gratuity) under the Saudi Labour Law.
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A landmark New Social Insurance Law was enacted on 3 July 2024 and took operational effect on 3 July 2025. It applies exclusively to new workforce entrants with no prior contribution history under the Civil Pension or Social Insurance Laws. Key reforms include raising the statutory retirement age from 58 Gregorian years to 65, revising the pension accrual formula from 2.5% to 2.25% per year of contributions (based on the highest 180 months of wages), extending the early retirement contribution requirement to 25–30 years, and gradually increasing annuity contribution rates from 9% each (employer/employee) to 11% each by 2028. Existing contributors before 3 July 2024 generally remain under the old rules, with limited exceptions for those under age 48.5 or with fewer than 20 years of contributions.
Saudi Arabia has no bilateral totalization agreements with countries outside the GCC. Within the GCC, the Unified Law of Insurance Protection Extension (in force since 2006) allows Saudi nationals working in other GCC states to remain covered by GOSI, and GCC nationals working in Saudi Arabia contribute to their home country's social insurance system. There is no personal income tax in Saudi Arabia, so pension income — whether received domestically or abroad — is not subject to Saudi income tax.
~56% (old system: 2.5% × 25 years = 62.5%; new system: 2.25% × 25 years = 56.25%; maximum 100%)
Single mandatory pillar: GOSI Annuities Branch (DB PAYG) for Saudi nationals; mandatory End-of-Service Benefit (lump-sum gratuity) for all workers under Labour Law; no mandatory funded second pillar; voluntary GOSI contributions available for self-employed and certain other categories
Defined Benefit Pay-As-You-Go (PAYG)
Employee
9.75 (pre-July 2024 system: 9% annuities + 0.75% SANED); 10.25 (new 2024 system from July 2025: 9.5% annuities + 0.75% SANED, rising to 11.75% by 2028)
Employer
11.75 (pre-July 2024 system: 9% annuities + 2% occupational hazards + 0.75% SANED); 12.25 (new 2024 system from July 2025: 9.5% annuities + 2% occupational hazards + 0.75% SANED, rising to 13.75% by 2028); expatriates: 2% occupational hazards only
Self-Employed
Voluntary contributors: 18% total (9% employee share + 9% employer share, both paid by self-employed person) under old system; new system rates apply to new entrants
Notes
Contribution base is basic salary + housing allowance, minimum SAR 1,500 and maximum SAR 45,000/month. For new entrants under the 2024 Social Insurance Law, annuity rates increase 0.5% per year from July 2025 (9.5% each) until reaching 11% each by July 2028. Existing contributors before 3 July 2024 remain at 9% each for annuities. GCC nationals working in Saudi Arabia contribute at their home country's rates, with GOSI transferring the funds to the relevant home-country social insurance body.
Common questions
Do expats get a pension in Saudi Arabia?
Expats generally can't access Saudi Arabia's state pension, which is reserved for citizens. Instead, most private-sector employees earn an end-of-service gratuity — a lump sum based on your length of service and final basic salary, paid by your employer when your contract ends.
How is end-of-service gratuity calculated in Saudi Arabia?
Gratuity is typically a set number of days' basic salary for each year of service, often rising the longer you stay and capped at a maximum. The exact formula depends on your contract and length of service — you can estimate yours with our free Gulf End-of-Service Gratuity calculator.
Can I keep building a pension while working in Saudi Arabia?
Often yes — many expats make voluntary contributions to their home-country state or private pension while in the Gulf, so those years aren't "dark years" for pension accrual. The options depend on your home country, so check what voluntary contributions it allows.