Gross to net Payroll Engine Saudi Arabia (KSA)
G2N Nova is the exclusive Gross to Net Payroll Engine Saudi Arabia, capable of delivering 100% accurate gross-to-net calculations for the Kingdom of Saudi Arabia and over 100 other countries. Remarkably, it achieves this in real-time through a unified, native platform without storing or accessing any employee-identifiable information.
This cutting-edge payroll solution addresses the challenges of complex data privacy compliance by ensuring that sensitive employee information remains entirely within the client’s systems. G2N Nova does not require access to this data to perform gross-to-net payroll calculations, offering a secure and efficient alternative.
To learn more about the Gross to Net Engine Saudi Arabia
The first gross-to-net payroll tax engine for KSA
Are you searching for the latest payroll tax updates in KSA? Powered by G2N’s Payroll Tax Engine Saudi Arabia, our cloud-based platform provides real-time, continuous updates tailored for KSA payroll. This SaaS tax engine seamlessly integrates with historical payroll data in pay statements

Your Objective
- Maintain your existing HCM/ERP/WFM software without switching to an external payroll solution.
- Find a partner offering a plug-and-play solution exclusively for payroll tax updates.
Solutions
- HCM, ERP, WFM Systems: G2N integrates effortlessly with all major HCM, ERP, Time, Pay, and Attendance systems, allowing organizations to continue using their existing infrastructure without disruption
- System Integrators: G2N enables system integrators to easily add cross-border payroll functionality to their platforms. This simplifies international payroll management while giving integrators full control over the user experience, ensuring tailored and seamless payroll solutions for their clients
- Enterprises: Simplify your payroll management with G2N’s unified platform. Eliminate processing headaches, free up valuable time to grow your business, enhance your products, or finally take that much-needed vacation.
- SMEs: Built for flexibility and growth, G2N scales effortlessly to accommodate your expanding workforce and evolving compliance needs. From 1 to 120,000 records, G2N ensures accurate real-time gross-to-net payroll processing, making it the perfect solution for small and medium-sized businesses
- Service Providers: Focus on what matters most to your clients and your business with G2N’s seamless payroll processing platform, trusted by leading Fortune Global 500 companies.
- Tax Engine Saudi Arabia: With G2N’s Tax Engine Saudi Arabia, ensure complete compliance with local tax regulations while simplifying payroll tax management across borders, offering reliable, real-time updates tailored specifically to KSA’s tax requirements.
How It Works
Input
- Employee Data: G2N Nova collects essential employee details such as compensation, benefits, and personal information.
- Leave: Tracks and processes employee leave, absences, and time-off.
- Time & Activity: Monitors employee work hours, attendance, and overtime.
G2N Nova Process
- Country Level Filing: Integrates with statutory authorities for accurate filing and reporting according to country-specific tax and social security regulations.
- Country Level Regulation: G2N Nova ensures full compliance with local payroll rules, supported by an in-house compliance team.
- Global Payroll Engine – Gross to Net Computation: The engine calculates gross-to-net payroll for employees, ensuring accurate pay and deductions in real-time.
Output
- General Ledger (GL): Provides detailed financial entries for accounting and reconciliation.
- Treasury: Generates reports for cash flow and treasury management.
- Bank File: Creates bank files for payroll payments and other transactions.
- Payslip: Delivers detailed pay slips showing deductions, taxes, and net pay to employees.
G2N Nova is built for flexibility, scalability, and compliance, offering a streamlined and secure solution to process payroll with ease across the KSA and globally. It ensures smooth integration with existing systems and offers a real-time, transparent payroll experience for businesses and their employees.
Features of G2N Payroll Engine Saudi Arabia (KSA)
G2N Payroll Engine Saudi Arabia offers accurate Payroll Calculator Saudi Arabia functionality, providing precise gross-to-net payroll calculations that align with local regulations.
Benefits
Streamlined Payroll Processing
G2N Payroll Engine Saudi Arabia streamlines payroll tasks, ensuring quick, accurate, and efficient payroll processing that complies with local regulations, featuring a powerful Salary Calculator Saudi Arabia.
Seamless Inbound and Outbound Integrations
Our platform integrates seamlessly with KSA’s payroll and HR systems, enabling smooth data transfer, improving operational efficiency, and minimizing errors in payroll calculations.
Eliminate Manual Data Extraction
G2N automates data extraction, saving time and reducing human errors by eliminating manual data entry from payroll processes, including in the Salary Calculator Saudi Arabia.
Multi-Country Payroll Capabilities
G2N enables businesses in Saudi Arabia to manage payroll across multiple countries, offering the flexibility to handle diverse payroll and tax requirements with ease, including local Salary Calculator Saudi Arabia functionalities.
Details required to calculate Gross to Net salary in Saudi Arabia
G2N Payroll Engine Saudi Arabia is designed to handle a wide variety of gross-to-net salary calculations across numerous employee scenarios, including but not limited to:
- New hire on the 1st of the month
- New hire mid-month
- Termination mid-month
- Termination at the end of the month
G2N’s flexibility allows it to accommodate many other complex payroll scenarios, ensuring accurate and efficient calculations for all situations, regardless of the timing of employee changes
Pay Elements – Data for Calculations
Mercans’ G2N Payroll Engine is designed to manage and calculate a wide range of pay elements for employees in Saudi Arabia, seamlessly integrating with existing HCM systems. This powerful, one-of-a-kind engine automates the calculation of gross-to-net payroll by pulling the necessary data from HCM records, ensuring compliance with local regulations and delivering precise salary processing for a variety of employee scenarios. Pay elements are the various components that make up an employee’s total compensation package. These elements can include base salary, bonuses, allowances, and benefits, and are used to calculate the gross-to-net payroll. In Saudi Arabia, pay elements are crucial for ensuring that employees are paid accurately, in compliance with local regulations, and according to the company’s compensation structure.
Key Pay Elements and Data Flow
Annual Leave Pay
Assignment Salary
Basic Salary (Incl. Arrears)
Bonus (Annual, Referral, etc.)
Bonus – Profit Sharing
Bonuses – Discretionary or One-time
Car Allowance (Employee Using Personal Car for Business Purposes)
Children Education Allowance
Commission
End of Service Gratuity – Non Statutory
Entertainment Allowance
Expense Reimbursement
Hardship Allowance
Housing Allowance
In-kind Company Car Usage
In-kind Company Housing
In-kind Medical Insurance
Incentives and Performance Bonuses
Meal Allowance
On-call Duty
On-site Provided Meal
Overtime
Paid Leave
Premium Pay (Shift Premium)
Representative Allowance
Sick Pay
Supplemental Basic (13th or 14th Month Salary)
Telephone Allowance
Tools and Work Clothes
Transportation Allowance (Lump-sum, Not an Actual Expense Based)
Transportation / Car Expense (Reimbursement of Actual Expense)
Travel Expenses
Travel Ticket Allowance
Car Allowance
End of Service Gratuity – Statutory (Paid by S/S Authority)
Food Allowance
Health Care
Personal Allowance
Special Allowance
Schooling Allowance
Recurring Constant Allowances
Profit Distribution
Leave Balance Payout (Leavers and Non-leavers)
Life Insurance Installments / Contributions
Medical Insurance / Medical Care
Pensions & Pension Contributions
Social Raise
Pay Groups
G2N (Gross-to-Net) is built to manage gross-to-net calculations across various employee classifications, including distinct Pay Categories. These classifications ensure accurate and tailored calculations for every employee scenario. This means, G2N is capable of performing gross-to-net calculations based on employee classification. Here’s how G2N processes payroll based on these specific categories:
- Regular Employment: Standard employment scenario where an employee works under a full-time contract with regular salary, benefits, and other pay elements. Gross-to-net calculations for regular employees include various allowances, deductions, and applicable statutory contributions.
- Self-Employed: Independent contractors or freelancers who are not employed under regular work contracts but may still receive payment for their services. For self-employed individuals, G2N calculates gross-to-net based on their own terms, considering applicable tax and social security contributions specific to their status
G2N is capable of performing gross-to-net calculations based on the employee classification and takes into account various components and contributions for both the employee and employer. The system ensures that all necessary deductions and contributions are applied correctly for each pay group. The key components involved in these calculations include:
- Social Security: Contributions made by both the employee and employer towards the social security system, which provides benefits such as pensions and healthcare coverage
- Work Injury: Employer contributions towards work injury insurance to cover potential workplace accidents and related medical expenses for employees.
- Unemployment Insurance: Contributions towards unemployment insurance to provide financial support to employees in the event of job loss, typically paid by both the employee and employer.
Social Insurance, Unemployment Insurance, and Work Injury Rates
In Saudi Arabia, the contribution rates for Social Insurance, Unemployment Insurance, and Work Injury vary based on the nationality of the employees. Saudi nationals have different rates compared to non-Saudis, with specific distinctions between GCC Nationals and non-GCC expatriates. Furthermore, countries within the GCC (e.g., Qatar, UAE, Bahrain, Oman, Kuwait) have varying contribution rates that influence how payroll calculations are made for employees from these nations. These differences ensure compliance with local labor laws and regulations for each employee classification.
Saudi Employees
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base | Proration Type |
---|---|---|---|---|---|---|
Social insurance | 9% | 9% | 1500.00 | 45000.00 | Basic + housing | Pro rata |
Unemployment insurance | 0.75% | 0.75% | 1500.00 | 45000.00 | Basic + housing | Pro rata |
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing | Pro rata |
Total | 9.75% | 11.75% |
Expat
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base | Proration Type |
---|---|---|---|---|---|---|
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing | Pro rata |
Total | 0% | 2% |
Bahraini employees
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base |
---|---|---|---|---|---|
Social insurance | 11% | 9% | - | 39798.40 | January total contractual salary |
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing |
Total | 11% | 9% | |||
Exchange rate | 9.95 |
UAE
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base | Pro rata Type |
---|---|---|---|---|---|---|
Social insurance | 11% | 9% | 1020.90 | 51045.00 | January total contractual salary | |
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing | |
Total | 11% | 11% | ||||
Exchange rate | 1.02 |
Kuwaiti Employees
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base | Pro rata Type |
---|---|---|---|---|---|---|
Social insurance | 9.5% | 9% | - | 33950.68 | January contractual salary | |
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing | |
Total | 9.5% | 11% | ||||
Exchange rate | 12.35 |
Qatari Employees
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base | Pro rata Type |
---|---|---|---|---|---|---|
Social insurance | 12.0% | 9% | 0.00 | Basic Salary QR100000 and Housing 6000QR | Basic+Housing+Social Allowance | Pro rated |
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing | |
Total | 12% | 11% | ||||
Exchange rate | 1.03 |
Omani Employees
Contribution | Employee rate | Employer rate | Monthly Minimum amount (SAR) | Monthly Maximum amount (SAR) | Calculation base | Pro rata Type |
---|---|---|---|---|---|---|
Social insurance | 9.5% | 9% | 1169.14 | 29228.40 | Basic Salary | |
Work injury | 0% | 2% | 400.00 | 45000.00 | Basic + housing | |
Total | 7.0% | 11% | ||||
Exchange rate | 9.74 |

Request a Demo
Experience the power of streamlined payroll processing with a demo of G2N. See firsthand how our advanced platform can simplify your payroll management, from gross-to-net calculations to compliance with local regulations. Request a personalized demo today to understand how G2N can optimize your payroll operations, improve efficiency, and ensure accuracy for your organization.