SAR (SAR)

Payslip Generator for
Saudi Arabia

Generate professional payslips for Saudi Arabia. Country-specific templates with local deductions and formatting.

Payroll Regulations in Saudi Arabia

Saudi Arabia's Labour Law (Royal Decree M/51) requires employers to pay wages through the Wage Protection System (WPS) administered by the Ministry of Human Resources and Social Development (MHRSD). There is no personal income tax on employment income. Employers must register Saudi employees with GOSI (General Organisation for Social Insurance) and provide detailed pay records including basic salary, housing allowance, and transport allowance.

Pay Frequency

Monthly

Currency

SAR (SAR)

Common Deductions in Saudi Arabia

GOSI - Annuities Branch (Saudi Nationals, 9.75% employee)

GOSI - Occupational Hazards (2% employer only)

GOSI - SANED Unemployment Insurance (Saudi Nationals)

Salary Advance Repayment

Absence Deductions

CleverSlip Features for Saudi Arabia

SAR currency formatting

GOSI contribution calculation fields

Housing and transport allowance line items

WPS payment reference fields

Frequently Asked Questions

What GOSI contributions appear on a Saudi payslip?

For Saudi nationals, GOSI contributions include the Annuities Branch (9.75% employee, 9.75% employer of covered salary) and SANED unemployment insurance (0.75% each). For expatriates, only the Occupational Hazards branch applies (2% employer-paid). The contribution base is the basic salary plus housing allowance (capped at SAR 45,000/month). GOSI deductions for Saudi employees appear on the payslip as salary deductions.

Is there income tax in Saudi Arabia?

No, Saudi Arabia does not levy personal income tax on employment income for either Saudi nationals or expatriates. Salaries are received free of income tax. However, the government introduced a 15% VAT on goods and services (increased from 5% in 2020), and businesses may be subject to zakat (2.5% on Saudi-owned entities) or corporate income tax (20% on foreign-owned entities), though these do not affect individual payslips.

What is the standard salary structure in Saudi Arabia?

Saudi employment contracts typically break total compensation into basic salary (usually 50%-60% of total), housing allowance (typically 25% of basic), and transport allowance (typically 10% of basic). This structure matters because end-of-service benefits and GOSI contributions are calculated on basic salary plus housing allowance only. Many employers also provide annual air tickets, medical insurance, and an iqama (residency permit) renewal fee.

How do I create payslips for Saudi Arabia employees?

Saudi employers must provide payslips detailing basic salary, housing allowance, transport allowance, overtime, and any deductions, in compliance with the Labour Law (Royal Decree M/51). Payslips should align with the salary amounts reported through the Wage Protection System (WPS). GOSI contributions for Saudi nationals must be calculated and shown. There is no prescribed payslip format, but clarity and completeness are required.

Are payslips a legal requirement in Saudi Arabia?

Yes. The Saudi Labour Law requires employers to maintain accurate wage records and pay employees through the WPS system. Providing a payslip is considered part of the employer's obligation to document and communicate the basis of each salary payment. The MHRSD (Ministry of Human Resources and Social Development) can audit employers and impose fines for non-compliance with payroll and documentation requirements.

What deductions must appear on a Saudi Arabia payslip?

For Saudi nationals, payslips must show GOSI Annuities Branch deductions (9.75% of covered salary) and SANED unemployment insurance (0.75%). For all employees, any approved deductions such as salary advances, accommodation deductions, or absence deductions must be itemised. Since there is no income tax, there are no tax deduction lines. The payslip should show gross salary, total deductions, and net salary.

Can I generate payslips for part-time or contract workers in Saudi Arabia?

Yes. Saudi Labour Law recognises fixed-term contracts, part-time work, and project-based arrangements, and all employees under these agreements are entitled to payslips reflecting their agreed compensation structure. Part-time employees (working fewer than eight hours per day or 48 hours per week) are entitled to proportional benefits. Self-employed individuals and non-employee contractors are not entitled to employer payslips.

How often should payslips be issued in Saudi Arabia?

Saudi Labour Law requires that monthly-paid employees receive their salary within 10 days of the end of the payment period, and payslips should be issued with each payment. The WPS system electronically tracks payment timeliness. Non-monthly workers (daily or weekly paid) must be paid at the agreed frequency. Employers must retain payroll records to demonstrate compliance with WPS and GOSI obligations.

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