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 and GCC 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. As of 2026, GOSI serves approximately 12.9 million contributors, with expatriates comprising around 77% of total subscribers and Saudi nationals accounting for 23%.
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A landmark New Social Insurance Law (Royal Decree M/273) 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 30 years at age 55, and gradually increasing annuity contribution rates from 9% each (employer/employee) in 2024 to 11% each by 2028. Existing contributors before 3 July 2024 who were aged 48.5 Gregorian years or older, or had at least 20 years of contributions, remain fully under the old rules. The new law also unifies public and private sector pension provisions, allowing contribution history to follow employees between sectors without loss of entitlements, and introduces GOSI-funded maternity compensation (three months) for all insured female workers (Saudi and non-Saudi) effective July 2025.
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. In October 2025, Saudi Arabia formally abolished the Kafala (sponsorship) system, replacing it with a contract-based employment framework that grants approximately 13 million migrant workers greater freedom of mobility and job change.
~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 and GCC 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 Saudi nationals and certain other categories. New 2024 law unifies public and private sector pension provisions under one framework for new entrants.
Defined Benefit Pay-As-You-Go (PAYG)
Employee
Old system: 9.75% (9% annuities + 0.75% SANED). New system: 10.75% from July 2026 (10% annuities + 0.75% SANED), rising to 11.75% by July 2028. Expatriates: 0%.
Employer
Old system: 11.75% (9% annuities + 2% occupational hazards + 0.75% SANED). New system: 12.75% from July 2026 (10% annuities + 2% occupational hazards + 0.75% SANED), rising to 13.75% by July 2028. Expatriates: 2% (occupational hazards only).
Self-Employed
Voluntary contributors (old system): 18% total (9% employee share + 9% employer share, both paid by self-employed person). New system rates apply to new entrants with no prior contribution history.
Notes
Contribution base is basic salary + housing allowance only (transport, phone, commissions, bonuses excluded); minimum SAR 1,500 and maximum SAR 45,000/month. Two parallel systems operate as of 2026: (1) Old system (pre-3 July 2024 registrants): fixed at 21.5% combined (employee 9.75%, employer 11.75%); (2) New system (post-3 July 2024 registrants): pension branch increases 0.5% each side every July — 9.5% each (Jul 2025), 10% each (Jul 2026), 10.5% each (Jul 2027), 11% each (Jul 2028). SANED (0.75% each) and occupational hazards (2% employer only) are unchanged across both systems. 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. Salary changes for GOSI purposes are limited to January (or Muharram) each year.
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.