How to calculate social-insurance contributions
Social insurance is a mandatory contribution paid by both the employee and the employer on the covered salary, funding pensions and retirement schemes in most countries. Rates and caps differ by country, and in the Gulf the contributions largely cover citizens. This guide explains the basics and matches the social-insurance calculator on Klar.
Who pays, and how much?
The contribution is paid by two parties: the employee share is deducted from the salary, and the employer share is paid on top of it. The rates currently used by the calculator: Jordan: employee 7.5% and employer 14.25%, cap JOD 3,733 per month, covering all employees. Saudi Arabia: employee 9.75% and employer 11.75%, cap SAR 45,000 per month, citizens. UAE: employee 11% and employer 15%, cap AED 70,000 per month, citizens. Kuwait: employee 8% and employer 11.5%, cap KWD 2,750 per month, citizens. Qatar: employee 7% and employer 14%, cap QAR 100,000 per month, citizens. Bahrain: employee 8% and employer 18%, cap BHD 4,000 per month, citizens. Oman: employee 8% and employer 14.5%, cap OMR 3,000 per month, citizens.
The monthly cap
Contributions are not based on the full salary but on the monthly cap set by each country. If the salary exceeds the cap, only the capped amount is used. For example in Saudi Arabia: a salary of 50,000 SAR is treated as 45,000 SAR, and the employee share = 45,000 × 9.75% ≈ 4,387.5 SAR.
Citizenship in the Gulf
In Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman, social-insurance contributions essentially cover citizens; the calculator does not cover expat savings or work-injury schemes, which are separate and have their own deferred start dates. In Jordan, the Social Security Corporation covers all employees.
Worked example
An example matching the calculator: a Saudi employee earning 15,000 SAR. The salary is below the cap, so no limit applies. Employee share = 15,000 × 9.75% ≈ 1,462.5 SAR, employer share = 15,000 × 11.75% ≈ 1,762.5 SAR, and the total ≈ 3,225 SAR per month.
When do the rates change?
Rates and caps are adjusted from time to time by official decrees and regulations (such as the move to the new insurance system in Oman in July 2026). The figures are reviewed periodically in the calculator, but always verify the latest updates with the relevant authorities before relying on them.
Key takeaways
- The employee share is deducted from the salary; the employer share is paid on top.
- Contributions are based on the salary capped at the monthly limit if it is exceeded.
- In the Gulf the contributions largely cover citizens; Jordan covers everyone.
- Rates and caps change by official decree and are reviewed periodically.
Frequently asked questions
Are expats subject to social insurance?
In most Gulf states, citizens are covered by the pension contributions, while expat coverage (work injury and savings) sits in separate schemes with different start dates. Enter the employee’s situation after checking with the employer.
What happens if the salary exceeds the cap?
Only the capped amount is used, so the contribution does not grow with a higher salary. The calculator shows the “capped base” so you can see the amount used.
Are the rates updated periodically?
Yes, rates and caps change through official decisions. The calculator follows the latest values in the database and cites the source for each country.