Payroll Services in Saudi Arabia: GOSI, Mudad & EOSB
Monthly payroll prepared with GOSI contributions, a Mudad wage file and end-of-service provisions that add up.
Payroll Services overview
In Saudi Arabia, your payroll has to match in three places: your bank payments, the wage file on Mudad, and each employee's record on GOSI. When they don't match, the Ministry of Human Resources sees it.
Every employee, Saudi or expat, costs the employer an extra 2% of their basic pay and housing allowance for work-injury insurance. Saudi employees also pay into a pension and unemployment fund with the employer, at rates that depend on when they started their first job. And everyone builds up an end-of-service payment for the day they leave.
Each month you send us the changes: new joiners, leavers, overtime, leave, and deductions. We work out the salaries, GOSI amounts, and End-Of-Service Balances (EOSB), prepare the Mudad file, and post payroll to your books. Your team approves the run and pays salaries from your bank, whether your staff are in Riyadh, Jeddah, Dammam, or across several sites.
Prefer to talk it through first? Call +971 54 542 4854 or email info@hof-partners.com.
What each pay run includes
- Salary calculation
- Basic pay, housing and transport allowances, overtime, leave, and deductions worked out for every employee each month.
- GOSI contributions
- Employer and employee shares worked out on each registered wage, with any salary change flagged for update on GOSI.
- Mudad wage file
- The wage protection file prepared in the Mudad format and checked against payroll, ready for your authorised user to upload.
- End-of-service balance
- The monthly wage file prepared in the Mudad format and checked against payroll, ready for your team to upload.
- Final settlements
- Leaving pay worked out in full: end-of-service amount, unused leave, and final salary, with every step shown.
- Payroll in your books
- Payroll posted to your accounts and matched to your bank payments and GOSI records at the end of each month.
Your payroll, GOSI and Mudad records tell the same story every month.
Questions about Payroll Services
An employee earns half a month's wage for each of their first five years, then a full month's wage for each year after that. It's based on their last wage, and part years count in proportion. We keep this balance up to date in your books every month.
For every employee, Saudi or not, the employer pays 2% of the contributory wage for occupational hazards. Saudi employees also have annuity and SANED contributions shared between employer and employee, at rates that depend on when the employee joined the system. We confirm the rates that apply to each employee before the first run.
No. We prepare the file in the Mudad format and check it against payroll and GOSI records. Your authorised user uploads it and releases salaries from your bank. We prepare. You approve. You pay.
Yes. We run the Saudi payroll under GOSI and Mudad and the UAE payroll under the UAE wage protection and gratuity rules, on one monthly timetable with consistent journals for group reporting. See our UAE payroll service.
Before the first salary is due. We set up the payroll structure and allowances, check that each employee is registered on GOSI with the right wage, and prepare the first Mudad file, so the first month is clean rather than corrected later.
Contributions for each month are due by the 15th of the next month. Paying late adds a fine of 2% of the unpaid amount for each month of delay, so we have the figures ready well before the 15th.
It depends on how long they worked. Under 2 years, nothing. From 2 to 5 years, one third. From 5 to 10 years, two thirds. After 10 years, the full amount. Some cases get the full amount sooner, such as force majeure, so we check each case against the contract and the reason for leaving.
More ways we can help
All services- ZATCA E-InvoicingYour invoice data, VAT treatments and workflows ready for Fatoora integration before your wave date arrives.
- VAT ServicesRegistration assessed against the SAR 375,000 threshold, then every VAT return prepared from reconciled books.
- Zakat ServicesYour Zakat base calculated from year-end figures and the return prepared well inside ZATCA's 120-day window.
- Qawaem FilingYear-end financial statements prepared, mapped to XBRL and ready to upload to Qawaem within six months.
Talk to us about your Saudi payroll
Tell us what you need. Your message goes straight to our accountants, and we aim to reply within one business day.