Mudad is the platform where employers upload a wage file every month to prove salaries were paid, under the Ministry of Human Resources' Wage Protection Program. This guide explains the rates, the wage they apply to, worked examples, how Mudad works and its deadlines, and the payroll errors that cause problems in both.
What are GOSI contributions, and who pays them?
The General Organization for Social Insurance (GOSI) collects monthly contributions for three branches: pensions (annuities), unemployment insurance (SANED) and occupational hazards. Who pays what depends on nationality and on when a Saudi employee first joined the system.
| Branch | Employer | Employee | Applies to |
|---|---|---|---|
| Pension, Saudis registered before 3 July 2024 | 9% | 9% | Saudis |
| Pension, new Saudi contributors from 3 July 2024 | 10% | 10% | Saudis with no earlier contributions; rate in force from 1 July 2026 |
| SANED unemployment insurance | 0.75% | 0.75% | Saudis |
| Occupational hazards | 2% | None | Saudis and non-Saudis |
The new Social Insurance Law, in force since 3 July 2024, sets the pension rate at 11% each for new contributors, reached in steps. The step dates commonly reported are:
| From | Employer | Employee |
|---|---|---|
| 3 July 2024 | 9% | 9% |
| 1 July 2025 | 9.5% | 9.5% |
| 1 July 2026 | 10% | 10% |
| 1 July 2027 | 10.5% | 10.5% |
| 1 July 2028 | 11% | 11% |
So payroll now has two groups of Saudi employees on different pension rates, and the rate for the newer group changes every July. GCC nationals working in Saudi Arabia are covered under their home country's scheme through GOSI, with their own rules.
Which wage is GOSI calculated on?
The contributory wage: the basic wage plus the housing allowance, up to a maximum of SAR 45,000 a month. It is not the total package.
- Basic wage: as registered in the employment contract.
- Housing allowance: included when paid in cash. When the employer provides housing in kind instead, GOSI gives it a set value, commonly reported as two months' basic wage a year; confirm the current basis with GOSI.
- Other allowances, such as transport or phone, are generally not included. Check GOSI's current rules if you pay unusual allowances.
- Cap: contributions stop at SAR 45,000 of contributory wage a month, however high the salary.
The contributory wage registered with GOSI must change when the basic wage or housing changes, for example after a promotion. A pay rise in payroll that is never reported to GOSI is one of the most common mismatches.
Contributions are paid monthly, by the deadline set in GOSI's regulations, commonly reported as the 15th of the following month; check the current date with GOSI. The law sets a late-payment fine of 2% of the contributions due for each month or part of a month of delay.
How do you calculate GOSI contributions? A worked example
A Riyadh distributor's October 2026 payroll includes three employees, each in a different GOSI group. Amounts are monthly, in SAR.
| Saudi, joined August 2026 | Saudi, registered before July 2024 | Non-Saudi | |
|---|---|---|---|
| Basic wage | 8,000 | 38,000 | 12,000 |
| Housing allowance (cash) | 2,000 | 9,500 | 3,000 |
| Transport allowance (not included) | 800 | 2,000 | 1,000 |
| Contributory wage | 10,000 | 45,000 (47,500, capped) | 15,000 |
| Employer: pension | 1,000 (10%) | 4,050 (9%) | None |
| Employer: SANED | 75 (0.75%) | 337.50 (0.75%) | None |
| Employer: occupational hazards | 200 (2%) | 900 (2%) | 300 (2%) |
| Employer total | 1,275 | 5,287.50 | 300 |
| Employee: pension | 1,000 (10%) | 4,050 (9%) | None |
| Employee: SANED | 75 (0.75%) | 337.50 (0.75%) | None |
| Deducted from the employee | 1,075 | 4,387.50 | None |
The employer pays SAR 6,862.50 for the three and deducts SAR 5,462.50 from salaries, a total of SAR 12,325 to GOSI.
Two details are easy to miss. The second employee earns SAR 47,500 in basic and housing, but contributions stop at SAR 45,000. And the first employee's pension rate will rise to 10.5% each in July 2027, while the second employee's stays at 9%.
What is Mudad wage protection, and what are the deadlines?
The Wage Protection Program is run by the Ministry of Human Resources and Social Development (HRSD). Private employers upload a monthly wage file through Mudad, showing what each employee was paid and when, and the ministry compares it with the wages registered for each employee. The establishment's compliance rate updates as soon as a file is processed.
The upload window was cut from 60 to 30 days from 1 March 2025. After the wage due date, the ministry steps up its response:
| Point | What happens |
|---|---|
| Due date | Reminder |
| Day 10 | Second reminder |
| Day 15 | Warning |
| Day 20 | Automatic referral for inspection |
| After 2 months | All ministry services suspended except work permit issuance and renewal |
| After 3 months | All services suspended; affected workers may move to another employer without consent |
The wage file is compared with other records, too. Wages in contracts documented on Qiwa are checked against what was paid, and an employee registered with GOSI but missing from the wage file counts as unpaid. A draft fines table published in 2025 proposed fines per worker for late wages and for missing uploads; check HRSD for the final amounts.
Which payroll errors cause GOSI and Mudad problems?
Almost all come from the same source: three systems, GOSI, Qiwa and payroll, holding different versions of the same employee.
| Error | Where it shows up | Fix |
|---|---|---|
| Pay rise in payroll, not reported to GOSI | Contributions too low; wage mismatch | Update GOSI and Qiwa in the same week as payroll |
| Wage file amount differs from the Qiwa contract | Mudad compliance drops | Keep the contract wage and payroll in step |
| New hire not yet registered with GOSI | No cover; late registration | Register before or at the start date |
| Departing employee still registered with GOSI | Treated as unpaid in Mudad | Record the end of service in GOSI promptly |
| Employee missing from the wage file | Counted as unpaid | Reconcile the file headcount with GOSI before upload |
| Old IBAN after a bank change | Payment returned | Confirm bank changes before cut-off |
| Unpaid leave not recorded | Paid amount looks short | Enter leave before the payroll run |
Monthly checklist
What does HYP see in Saudi payroll?
The pension rate change has caught out many payroll teams. Systems built for a single Saudi rate need a second group for employees who joined after 3 July 2024, and that group's rate changes every July. When the step is missed, contributions are underpaid and the gap grows each month.
The other recurring problem is that GOSI, Qiwa and payroll are updated by different people at different times. The teams with clean Mudad compliance hold one employee record and treat any pay change as a single event: payroll, the GOSI wage and the Qiwa contract are updated together.
If you also run payroll in the UAE, our guide to why WPS salary files get rejected covers the UAE equivalent. See how HYP calculates GOSI and prepares wage files on our Payroll, End of Service & Compliance page.
Sources
- Social Insurance Law, Royal Decree M/273, official English translation (Articles 8, 9, 15 and 29)
- GOSI: SANED contribution rates from January 2022
- Argaam: GOSI pension contribution increase from 1 July 2025
- PaySpace: GOSI contribution rates from 1 July 2026
- HRSD: uploading the wage protection file
- Deloitte: update on the wage protection file upload period, February 2025
- Gulf Business: Saudi wage protection updates for private sector employers, August 2025