For small businesses in Dammam and the Eastern Province

HR software in Dammam for small businesses

In Dammam and the Eastern Province, one small establishment can employ legacy and newly registered Saudis, expatriates and GCC nationals such as Bahrainis, and each group has different GOSI rates. Add shifts and overtime in industrial and logistics work, and payroll needs care. HR FLARE calculates GOSI and prepares the WPS file in SAR.

Start free, no card GOSI calculator (Arabic)

Free up to 5 employeesGOSI calculationSaudi WPS file

What are GOSI contributions for each employee category in 2026?

A Saudi registered before 3 July 2024: 9.75% employee and 11.75% employer. A newly registered Saudi with no prior periods: from July 2026, 10.75% and 12.75%. A non-Saudi: 2% employer for occupational hazards only. A GCC national falls under the GCC insurance protection extension.

GOSI by employee category

The contributory wage is basic salary plus housing, capped at SAR 45,000 a month.

Employee category	Employee	Employer
Saudi registered before 3 July 2024	9.75%: annuities 9%, SANED 0.75%	11.75%: annuities 9%, SANED 0.75%, occupational hazards 2%
Saudi first registered on or after 3 July 2024 with no prior periods	From July 2026: 10.75%; annuities rise 0.5 points each July to 11% in 2028	From July 2026: 12.75%, with the same yearly step
Non-Saudi	None	2% occupational hazards
GCC national, for example Bahraini	Per home country rules, through the GCC insurance protection extension	Contributions to the home fund up to the Saudi rate, plus 2% occupational hazards to GOSI

In practice the new rate applies from the July contribution month each year. Check the official GOSI circular if in doubt.

Shifts and overtime

Normal working hours under the Labor Law are eight hours a day or 48 hours a week. For every overtime hour the employer pays the hourly wage plus 50% of the basic wage, under Article 107. In a shift based establishment, that means tracking each employee's actual hours, not just the roster.

From 15 June to 15 September, outdoor work in direct sunlight is banned from noon to 3 pm, which matters for open sites, ports and outdoor yards.

A holiday that falls on the weekend

If National Day or Founding Day falls on a Friday or Saturday, the employee gets the day before or after instead, according to summaries of Article 24 of the Implementing Regulations. Sources differ on whether weekend days inside an Eid holiday are compensated, so check HRSD's announcement for each Eid. If National Day coincides with Eid, there is no extra day.

GCC nationals in the Eastern Province

A GCC national working in the Kingdom falls under the GCC insurance protection extension: pension contributions go to their home country fund at its rates and wage definition, while the employer still owes 2% occupational hazards to GOSI. Treat this group as its own category in payroll. Read our explainer on the new Social Insurance Law (Arabic).

Typical HR tasks in Dammam

Putting every employee in the right GOSI category before the first payroll.
Updating annuity rates for new Saudis with the July contribution month each year.
Recording overtime per shift and paying it correctly.
Planning outdoor summer work around the midday ban.
Giving employees a replacement day when an official holiday falls on the weekend.

How HR FLARE helps in Dammam

Real capabilities in the product today. The free plan covers up to 5 employees.

Saudi WPS payroll file

HR FLARE builds a WPS payroll file from your payroll run: basic salary, housing, other earnings, deductions and the national ID or Iqama number, for your bank and Mudad.

GOSI calculation

HR FLARE calculates employee and employer social insurance contributions from each employee's salary.

Payroll in SAR

Gross, deductions, net and payslips in SAR, with a full record of every run.

Holidays and weekend

Private sector holidays are pre-computed from the Umm al-Qura calendar and adjustable, and the weekend is configurable, for example Friday and Saturday.

Hijri dates

Dates show in Hijri next to Gregorian throughout the app.

AI assistant and MCP

Ask about your team in Arabic or English, or connect HR FLARE to Claude or ChatGPT over MCP.

What HR FLARE does not do

No government platform connection: HR FLARE does not upload to Mudad, document contracts in Qiwa or register employees with GOSI. You or your bank upload the files.
No GCC home fund contributions: pension contributions for a GCC national's home fund are calculated and paid outside HR FLARE.
Data location: data is hosted in Europe; in-Kingdom hosting is not available.

Frequently asked questions

What GOSI applies to a Bahraini employee in a Dammam establishment?

The GCC insurance protection extension: pension contributions go to Bahrain's social insurance fund at its rates, and the employer pays 2% occupational hazards to Saudi GOSI.

How is shift overtime calculated in Saudi Arabia?

For every overtime hour, the employer pays the hourly wage plus 50% of the basic wage, under Article 107 of the Labor Law.

What happens if National Day falls on a Friday or Saturday?

The employee gets the day before or after instead, according to summaries of Article 24 of the Labor Law Implementing Regulations. If National Day coincides with Eid, there is no extra day.

Does HR FLARE calculate GOSI for non-Saudis?

HR FLARE calculates social insurance contributions from each employee's salary. Pension contributions to a GCC national's home fund are calculated outside HR FLARE.

Do Dammam payslips show Hijri dates?

Yes. HR FLARE shows Hijri dates next to Gregorian, and pre-computes holidays from the Umm al-Qura calendar with the option to adjust them.

Sources

Last reviewed 30 September 2026. This page is general information, not legal advice: always confirm with the official authority.

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