Common Payroll Mistakes in Saudi Arabia

Payroll in Saudi Arabia: Are You Doing It Right?

Payroll errors in KSA can lead to fines, legal issues, and compliance risks. Let’s uncover the 5 most common mistakes — and how to fix them.

Mistake #1: Incorrect GOSI Deductions:

Employers often miscalculate GOSI contributions for Saudi and expat employees. Saudi nationals: 22% Expats: 2% injury insurance only

Tip: Use automated rules to calculate GOSI correctly.

Mistake #3: Wrong End-of-Service Pay:

Manual errors in gratuity calculation can trigger legal disputes. Many businesses overpay or underpay by mistake.

Tip: Use software that applies Saudi gratuity laws accurately.

Mistake #4: No Payslip or Payroll History:

Employers must provide detailed payroll records and payslips to employees. Missing documentation can lead to labor court complaints.

Tip: Maintain digital records with cloud backup.

Mistake #5: Manual Payroll = Human Errors:

Spreadsheets are risky. They miss updates, create delays, and cause compliance issues. KSA payroll is better managed with automation.

Avoid Costly Payroll Errors with Zimyo:

Zimyo helps you automate GOSI, gratuity, WPS, and payslips — all 100% KSA-compliant. Faster payroll Accurate deductions WPS-ready reports