Payroll Outsourcing Services in Saudi Arabia
Saudi payroll is not difficult arithmetic. It is difficult reconciliation: the figure in the contract, the figure in GOSI, the figure in the wage file and the figure actually paid all have to agree, every month, for every employee. When they drift, the consequence is not a payroll problem — it is an establishment-level restriction.
In short
Payroll outsourcing in Saudi Arabia covers monthly salary processing, Wage Protection System filing, GOSI reconciliation, payslip distribution and end-of-service accrual. Because WPS compares your wage file against contract and GOSI records, payroll and compliance cannot be run separately — SCPL runs them as one process.
Reviewed September 2026
You're probably here because one of these is true
- WPS filing has flagged a mismatch
- Payroll takes days and still needs corrections
- You have no visibility of accrued end-of-service liability
If any of these describe your situation, say so in the enquiry — urgent cases are routed differently and we come back the same working day.
What's included
What SCPL handles under Payroll outsourcing
Employers of any size who want payroll to be correct, filed and reconciled without owning the process internally.
Monthly payroll under Saudi Labour Law
Salaries, allowances, overtime and deductions, calculated to your own policy and checked before the run closes.
Wage Protection System filing through Mudad
The wage file built from the payroll run itself and reconciled before submission, via Mudad or your bank channel, never re-entered afterwards.
GOSI contribution reconciliation
Keeping contribution records aligned with actual payroll so mismatches never accumulate.
Payslip issuance and distribution
Issued to every employee in the format you prefer.
End-of-service benefit (EOSB) accrual
Tracked monthly so the liability is visible long before anyone resigns.
Payroll cost reporting by cost centre
Breakdowns by department or project, on whatever split your finance team already uses.
| Period | Saudi, with contribution periods before 3 Jul 2024 | Saudi, with none before 3 Jul 2024 | Non-Saudi, non-GCC |
|---|---|---|---|
| 3 Jul 2024 – 30 Jun 2025 | 11.75% / 9.75% | 11.75% / 9.75% | 2% / nil |
| 1 Jul 2025 – 30 Jun 2026 | 11.75% / 9.75% | 12.25% / 10.25% | 2% / nil |
| 1 Jul 2026 – 30 Jun 2027 (in force now) | 11.75% / 9.75% | 12.75% / 10.75% | 2% / nil |
| 1 Jul 2027 – 30 Jun 2028 | 11.75% / 9.75% | 13.25% / 11.25% | 2% / nil |
| From 1 Jul 2028 | 11.75% / 9.75% | 13.75% / 11.75% | 2% / nil |
| All periods — maximum monthly contributory wage | SAR 45,000 | SAR 45,000 | SAR 45,000 |
GOSI, and the Social Insurance Law 1445H (M/273). The 2027 and 2028 rows are the published schedule, not yet in force. GCC nationals are on neither Saudi track — their pension share is set by their home state.
| Obligation | Deadline | If it is late |
|---|---|---|
| Wage protection file uploaded to Mudad | 30 days from the due date, which is the first day of each Gregorian month — not your pay date | SAR 500 for up to 20 workers, SAR 1,000 for 21–49, SAR 2,000 for 50 or more, under Resolution 112377 row 40. Not multiplied per worker. |
| GOSI contributions paid | Within the first 15 days of the month after the month they relate to | 2% of the contribution due for each month of delay, stopping once the fines reach 100% of the contributions |
| GOSI notified of a joiner or a leaver | Within the first 15 days of the month after they joined or left | A non-Saudi cannot be added retroactively — the entry takes the current date |
| Worker response to a violation justification | 3 days from the SMS to the number registered in Absher | Mudad processes the justification itself |
| Final settlement after separation | One week from the end of the contractual relationship, or two weeks where the employee resigned | A violation under Resolution 112377, row 36 |
Mudad's FAQ, GOSI's Employer FAQ, and MHRSD Ministerial Resolution 112377.
Who we work for
Trusted by operators who cannot afford downtime
Energy, petrochemicals, mining, utilities and construction — organisations where a lapsed permit or an unfilled shift stops work, not just paperwork.
Free tools
Work out where you stand before you call
No sign-up to use them. We only ask for an email if you want the result as a PDF.
Where we deliver this
City pages, each covering what actually differs about delivering this there.
Common questions
Does payroll outsourcing include WPS filing?
It should — and with us it does. Splitting processing from filing is where mismatches originate, because the wage file stops being a direct product of the payroll run and becomes a separate re-entry of the same data.
How is end-of-service benefit calculated in Saudi Arabia?
It accrues with length of service and is based on the final wage, with the calculation differing according to how the employment ends and how long the employee served. The practical risk is not the formula but the provisioning — companies that do not accrue monthly get a large unbudgeted cost on separation. Our EOSB calculator shows the accrual.
Can you take over payroll mid-year?
Yes. We reconstruct year-to-date figures, reconcile them against GOSI and WPS records, and identify any historic gaps before the first run — which is often where a pre-existing problem surfaces.
When is the WPS wage file due each month in Saudi Arabia?
Wages fall due on the first day of each Gregorian month, and the wage protection file must reach Mudad within 30 days of that date. The clock starts on the 1st, not on your pay date: wages due on 1 October have to be filed by 31 October, so paying on the 27th and filing on the 3rd of November is three days late even though only a week passed between paying and filing. The allowed period was cut from 60 days to 30 with effect from 1 March 2025.
Must salaries be paid from a Saudi corporate bank account?
In practice, yes. The wage protection file is generated and electronically signed by your bank after the transfer clears, and Mudad states that a file cannot be uploaded where salaries were handed over in cash — so a cash payroll cannot be made compliant at all. The alternative to a bank payroll agreement is Mudad's own payroll management system, which generates and uploads the file automatically.
What is the difference between Mudad and Qiwa?
Mudad is where the wage file is uploaded and your compliance percentage is calculated, and its establishment and employee data is drawn from GOSI. Qiwa is the Ministry of Human Resources labour platform holding employment contracts, the establishment file, and the Saudization and wage protection certificates. The reconciliation happens against GOSI; the consequences of failing it land on Qiwa.
Which employees must be registered with GOSI, and from when?
Every worker the establishment employs, notified to GOSI within the first fifteen days of the month immediately following the month the worker joined — and the same fifteen-day window applies when they leave. The establishment itself registers within two weeks at most of the date its head office meets the requirements of coverage. One trap on expatriate hires: GOSI does not allow non-Saudi subscribers to be added retroactively, so a missed window cannot be backdated and the gap is not recoverable.
Can our payroll provider upload the wage file for us?
The upload runs through the establishment's named wage protection representative, and Mudad requires that delegate to be an employee of the same establishment — so the account access stays with your people. SCPL's work sits either side of it: preparing the file and reconciling it against the GOSI registered wage before it goes up, then handling violations and justifications afterwards. Where we act on your portals, we do so as your authorised agent under access you control and can revoke.
What is deducted from an employee's salary in Saudi Arabia?
The statutory employee-side deduction is the GOSI contribution, and the rate follows the employee rather than the employer. A Saudi national with contribution periods before 3 July 2024 has 9.75% deducted; a Saudi national with no contribution periods before that date has 10.75% deducted from 1 July 2026 to 30 June 2027. A non-Saudi, non-GCC employee has no employee-side GOSI deduction at all — the 2% occupational hazards contribution is paid entirely by the employer. GCC nationals follow their home state's scheme under the Unified Law and are on neither track.
Related services
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