Formula
What this calculator does
Estimates your Saudi GOSI retirement pension based on your contribution years, average wage, current age, and number of dependents. Handles both the OLD system (for contributors prior to 3 July 2024) and the NEW system (for first-time workforce entrants after that date). It also checks your retirement eligibility against the statutory age and the 25-year early-retirement threshold, applies the 45,000 SAR pensionable wage cap, the 100% replacement ratio cap, and the family allowance bonus.
Old vs new GOSI system
Saudi Arabia overhauled its social insurance system effective 3 July 2024. The OLD system continues for: Saudi citizens who had contributed to GOSI BEFORE 3 July 2024, OR were aged 50+ Hijri (≈48.5 Gregorian) on that date, OR had 20+ years of contributions. The NEW system applies to: first-time workforce entrants after 3 July 2024 AND anyone under 50 Hijri with <20 years of contributions. Key differences: old uses last-24-month wage average vs new uses best-180-month average; old has 2.5% accrual vs new 2.25%; old retirement age is 58 Gregorian vs new 65 Gregorian. The transition is staged so workers near retirement aren't disadvantaged.
The pension formula
Both systems use the same structure: Pension = average pensionable wage × years of contribution × accrual rate. Old: 2.5% per year. New: 2.25% per year. The result is capped at 100% of the average pensionable wage (i.e., you cannot receive more in pension than your average wage). Pensionable wage = basic salary + housing allowance only (other allowances, performance bonuses, and overtime are excluded). The pensionable wage itself is capped at 45,000 SAR/month - if your wage exceeds this, only 45,000 counts for contributions and benefit calculation.
Early retirement (25 years of contribution)
Saudi citizens may retire at any age once they reach 300 months (25 years) of contribution. The pension is paid in full without age penalty, distinguishing the GOSI system from many global pension systems that reduce early-retirement benefits. Under the new system, this minimum gradually rises - by 2028, early retirees will need 30 years of contributions. The 25-year rule is the most popular path to GOSI retirement: a Saudi who started working at age 22 can retire at 47 with full pension.
Family allowance (دعم المعالين)
GOSI adds a percentage bonus to your base pension based on the number of dependents (spouse and qualifying children) you have at retirement: 1 dependent = +10%, 2 dependents = +15%, 3 or more = +20% (no further increase beyond 3). The bonus is applied to the base pension AFTER the 100% cap, not before. So if your base pension is 8,000 SAR and you have 3 dependents, your total pension is 8,000 × 1.20 = 9,600 SAR/month. This is uniquely a Saudi/GCC feature - most Western pension systems don't have family allowances.
Pensionable wage cap (45,000 SAR)
GOSI caps the pensionable wage at 45,000 SAR/month. If you earn 60,000 SAR/month, only 45,000 SAR counts for both contributions (you pay 9% × 45,000 = 4,050 SAR/month under the old system, not 9% × 60,000) and pension calculation. This cap protects high earners from over-contributing and ensures the pension is a baseline floor, not a 1:1 income replacement. Workers above the cap typically supplement with private retirement savings or end-of-service gratuity. Note: the cap may be reviewed periodically by Royal Decree.
Frequently asked questions
Pension = average pensionable wage × years of contribution × accrual rate. Accrual rate: 2.5% per year for the OLD system (contributors before 3 July 2024) or 2.25% for the NEW system (post-July 2024 entrants). Old system uses the average of the last 24 months of wages; new system uses the average of the BEST 180 months (15 years). The result is capped at 100% of average wage, plus a family allowance for dependents (10% / 15% / 20% for 1 / 2 / 3+ dependents). Pensionable wage = basic + housing allowance, capped at 45,000 SAR/month.
Old system (pre-July 2024 contributors): statutory retirement age is 58 Gregorian years (60 Hijri). New system (post-July 2024 entrants): 65 Gregorian. For those in transition (under 50 Hijri with less than 20 years of contribution on 3 July 2024), retirement age gradually rises from 58 to 65 based on age at that date. Early retirement (any age) is available with 25 years (300 months) of contribution - this is the most popular path.
Yes, if you have completed 25 years (300 months) of GOSI contribution. Early retirees in Saudi Arabia receive their FULL pension without age penalty, unlike many global systems. So someone who started working at 22 can retire with full pension at 47. Under the new system, the minimum gradually rises to 30 years by 2028 - so workers under the new system entering in 2024 will need to wait until age 52+ for early retirement.
GOSI adds a percentage to the base pension for dependents (spouse and qualifying children): 1 dependent = +10%, 2 dependents = +15%, 3 or more = +20% (no further increase beyond 3). For example: a base pension of 10,000 SAR with 3 dependents pays 12,000 SAR/month total. The bonus is applied to the base pension AFTER the 100% cap. This is a uniquely Saudi/GCC feature - most Western pension systems don't have family allowances.
Yes - they are separate benefits. End-of-Service Gratuity (مكافأة نهاية الخدمة) per Saudi Labour Law Articles 84-85 is a one-time lump sum from your EMPLOYER at termination, paid in addition to your GOSI pension. The lump sum is based on basic + housing wage × years of service (half-month per year for first 5 years, full month per year after). GOSI pension is paid MONTHLY from the government. Many retirees receive both: the lump sum for immediate cash needs (house, debt repayment) plus the lifetime pension for living costs.
Sources
- General Organization for Social Insurance (GOSI) - Official Portal— GOSI, Saudi Arabia
- GOSI Annuity & Pension Service— GOSI
- Retirement Pension Calculator - National Platform— my.gov.sa - Government of Saudi Arabia
- GOSI Awareness Platform - Categories and Reforms 3 July 2024— GOSI Awareness Platform
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