Saudi Arabia’s social tax rates will increase annually in 2025 through 2028 as part of a new social insurance system that entered into force July 3 and covers employees entering the workforce from that date.
The new system (Arabic), which the General Organization for Social Insurance refers to as “Social Insurance System 1445 AH” using the Islamic calendar, increases pension contribution rates by 0.5 percentage points each for employers and employees on the first through fourth anniversaries of the law’s entry into force. Like the previous system, only Saudi employees are covered by the pension and unemployment insurance schemes of ...