Work Injury Compensation in Saudi Arabia

Last updated and legally reviewd: October 27, 2026

Work injury compensation in Saudi Arabia is not calculated using one fixed formula. Your entitlement depends on whether the injury caused temporary incapacity, permanent partial disability, permanent total disability, or death. It also depends on your GOSI contribution record, assessed disability percentage, applicable law, and, in certain cases, nationality.

If you have been injured at work, the first question is not simply “How much compensation will I receive?” It is “Which compensation rules apply to my injury?”

This guide explains how to calculate work injury compensation in Saudi Arabia using four practical examples, how to report an occupational injury to the General Organization for Social Insurance (GOSI), and what to do if your claim or disability assessment is disputed.

Quick answer: Under the GOSI occupational hazards scheme, temporary incapacity may qualify for a daily allowance. Permanent partial disability below 50% generally results in a lump-sum payment. Disability assessed at 50% or above may qualify an eligible Saudi contributor for a monthly benefit. Non-Saudi contributors are subject to separate lump-sum provisions for certain permanent disability and death benefits. The final amount depends on the applicable legislation and GOSI’s assessment.

How Is Work Injury Compensation Calculated in Saudi Arabia?

Start by identifying the outcome of your injury. The applicable benefit changes according to the degree and permanence of disability.

These categories must be considered separately. For example, an assessed disability of 40% does not automatically entitle a worker to receive 40% of their monthly salary indefinitely. The actual calculation must use the wage accepted by GOSI for benefit purposes, not necessarily the amount deposited into the worker’s bank account each month.

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Which Saudi Social Insurance Law Applies?

Saudi Arabia introduced a new Social Insurance Law effective July 3, 2024. It generally applies to new entrants to covered employment who had no previous contribution periods under the earlier social insurance or civil pension schemes. Contributors covered by the previous system continue under the applicable earlier legislation, subject to amendments and transitional provisions.

The 2024 Royal Decree also introduced changes affecting occupational injury lump-sum calculations under the previous law. Notably, the age threshold for reducing certain lump-sum benefits was aligned with the new law at 45 years, and specified former maximum limits were removed.

You can review these provisions in the official English translation of the 2024 Social Insurance Law and its accompanying Royal Decree. For this reason, older online articles or GOSI FAQs referring to an age threshold of 40 or an old statutory cap should not be used without considering the subsequent amendments.

GOSI Compensation vs. Compensation Under the Saudi Labor Law

One of the most important distinctions in a workplace injury claim is whether the worker is covered by GOSI’s occupational hazards branch. Article 132 of the Saudi Labor Law excludes establishments subject to the occupational hazards branch of the Social Insurance Law from the Labor Law chapter dealing with work injuries.

This means you should not automatically calculate a GOSI-covered injury using the three-year salary formula found in Article 138 of the Labor Law. The two legal frameworks serve different circumstances:

• GOSI occupational hazards coverage: Insurance benefits are determined under the relevant Social Insurance Law and regulations.
• Applicable Labor Law work injury provisions: Where the occupational hazards chapter applies, the employer’s obligations and compensation rules are assessed under the relevant Labor Law articles.

The distinction is reflected in the Saudi Labor Law  and the Ministry of Human Resources and Social Development’s guidance on work injuries. In some circumstances, employer misconduct or a separate legal basis may also require examination. However, a worker should not assume that an additional payment is available merely because GOSI benefits have already been awarded.

Example 1: Temporary Work Injury Compensation

A worker may be temporarily unable to perform their job following a recognised occupational injury without having a permanent disability. Under Article 33 of the 2024 Social Insurance Law, the daily allowance is generally calculated at 100% of the injured person’s daily contributory wage. It is reduced to 75% during periods when the injured person receives treatment at GOSI’s expense in the circumstances specified by the law.

Example: SAR 6,000 Monthly Contributory Wage

Assume that:

• The worker’s recognised monthly contributory wage is SAR 6,000.
• The daily contributory wage is calculated on a 30-day basis.
• The medically certified period of incapacity is 20 eligible days.
• No other adjustment changes the assumed calculation.

Step 1 — Calculate the daily contributory wage

SAR 6,000 ÷ 30 = SAR 200 per day.

Step 2 — Apply the relevant allowance percentage

The table illustrates two different circumstances. The worker does not receive both amounts for the same days.

The actual allowance depends on the certified incapacity period, the applicable treatment arrangements, and GOSI’s recognised wage data. It is not automatically payable for every day a worker chooses to remain away from work.

Important: Occupational injury benefits should not be confused with ordinary sick leave. If your medical condition is unrelated to work, different rights may apply. The site’s guide to sick leave under Saudi Labor Law (Arabic) explains that separate subject.

Example 2: Lump-Sum Compensation for Disability Below 50%

When a recognised work injury results in permanent partial disability below 50%, compensation is generally calculated as a lump sum rather than an ongoing monthly benefit.

Under Article 35 of the 2024 Social Insurance Law, the standard lump-sum calculation is based on 60 times the assumed monthly permanent partial disability benefit, provided the injured person was not older than 45 on the injury date.

For workers above 45, the number of monthly-benefit multiples is reduced according to the statutory age calculation, subject to a minimum of 36 multiples. The 2024 Royal Decree aligned the corresponding age-reduction threshold under the earlier Social Insurance Law with this 45-year rule.

Example: 40% Permanent Disability and SAR 6,000 Wage

Assume the following:

• GOSI recognises the injury as occupational.
• The competent medical board assesses permanent disability at 40%.
• The average monthly contributory wage accepted for the calculation is SAR 6,000.
• The worker was 35 years old when the injury occurred.
• The assumed calculation satisfies the applicable statutory conditions.

Step 1 — Calculate the assumed monthly disability benefit

SAR 6,000 × 40% = SAR 2,400.

Step 2 — Calculate the lump-sum compensation

SAR 2,400 × 60 = SAR 144,000.

Illustrative lump-sum compensation: SAR 144,000.

The SAR 2,400 figure is used as a calculation base. It does not mean that a worker with a 40% disability assessment will automatically receive SAR 2,400 every month for life.

How Does Age Affect a Lump-Sum Payment?

Consider a worker with the same wage and disability percentage who was 48 when the injury occurred.

Because the relevant age threshold is 45, the number of multiples is reduced by three, assuming three complete years above that age:

60 − 3 = 57 multiples.

SAR 2,400 × 57 = SAR 136,800.

This age adjustment applies within the relevant statutory framework. Other circumstances, such as reassessment of disability or a previous compensation payment for the same injury, may change the actual amount.

The key is to use the current amended rules, not an outdated 40-year threshold or a maximum compensation limit that has since been removed for the specified cases.

Example 3: Monthly Benefits for Permanent Disability of 50% or More

A Saudi contributor whose recognised occupational injury causes permanent partial disability of at least 50% may qualify for a monthly disability benefit. Under Article 35 of the 2024 Social Insurance Law, the basic permanent partial disability benefit is determined by multiplying the assessed disability percentage by the permanent total disability benefit that would otherwise apply.

Example: 60% Permanent Disability

Assume:

• The injured person is a Saudi contributor who qualifies for the relevant monthly benefit.
• The recognised average monthly contributory wage is SAR 6,000.
• The medical board confirms a permanent occupational disability of 60%.

Basic calculation:

SAR 6,000 × 60% = SAR 3,600 per month.

This is the illustrative basic amount, not a final award. Statutory minimums, applicable adjustments, and the claimant’s individual circumstances must still be considered.

What If the Disability Is Total and Permanent?

For permanent total occupational disability, the basic monthly benefit under Article 35 is generally equal to 100% of the average monthly contributory wage, subject to the applicable statutory minimum and other provisions.

An additional amount may be payable when the medical board determines that the injured person permanently needs assistance from another person for essential daily activities. Such an increase is subject to statutory conditions and regulatory limits.

GOSI may also arrange medical reassessments during the initial statutory review period, which can affect an ongoing benefit. These provisions must not be applied to a non-Saudi contributor without considering the separate payment rules explained below.

Example 4: Compensation Under Article 138 of the Saudi Labor Law

This example applies only where the Labor Law’s work injury compensation provisions are legally applicable. It must not be substituted for GOSI occupational hazards calculations. Under Article 138, permanent total disability or death may result in compensation equivalent to three years of wages, subject to a minimum of SAR 54,000.

Permanent partial disability is calculated by applying the assessed disability percentage to the amount payable for permanent total disability.

Example: SAR 4,000 Monthly Wage and 40% Disability

Assume the claim falls within the scope of Article 138, the relevant monthly wage is SAR 4,000, and the recognised permanent partial disability is 40%.

Step 1 — Calculate the full-disability compensation base

SAR 4,000 × 36 months = SAR 144,000.

Step 2 — Apply the 40% disability assessment

SAR 144,000 × 40% = SAR 57,600.

Illustrative compensation: SAR 57,600.

The calculation is valid only if Article 138 governs the specific case. Article 139 also provides circumstances in which the employer may not be liable under the relevant provisions, including certain deliberate acts and unjustified refusal of prescribed medical treatment.

For an employment relationship that has also ended following the injury, distinguish this payment from any separate end-of-service entitlements.

How Are Non-Saudi Workers Compensated for Work Injuries?

Foreign workers in Saudi Arabia should not assume that the monthly disability-benefit example for Saudi contributors applies to them in exactly the same way.

The GOSI occupational hazards branch covers Saudi and non-Saudi workers, but special provisions apply to payment of certain permanent disability and death benefits for non-Saudis.

Under Article 39 of the 2024 Social Insurance Law, eligible non-Saudi beneficiaries receive lump-sum compensation in place of the relevant monthly benefit, calculated under the statutory rules. These include:

• Permanent total disability: 84 times the applicable monthly benefit.
• Permanent partial disability qualifying for a monthly benefit: 60 times that applicable benefit.
• Death caused by a work injury: 84 times the monthly benefit specified by the relevant legal provision, payable to eligible family members.

For permanent partial disability below 50%, the applicable lump-sum rules must be considered separately.

The earlier Social Insurance Law also contains specific provisions for non-Saudi beneficiaries, as affected by the 2024 amendments.

Therefore, an expatriate employee should establish which insurance rules govern the claim before relying on any online compensation calculator.

What Qualifies as a Work Injury in Saudi Arabia?

A recognised occupational injury is not limited to an accident inside a factory, construction site, or office.

Depending on the facts and applicable legislation, work injuries may include:

• An accident occurring while performing work or because of work.
• An accident during travel required for an employer-assigned task.
• Certain accidents on the usual journey between the worker’s home and workplace.
• Certain journeys between work and a location used for meals or prayers.
• An occupational disease recognised under the relevant statutory rules.

The connection between the accident and employment must be established. A medical report alone does not necessarily prove that an injury is occupational.

For example, a traffic accident involving an employee is not automatically a work injury merely because the employee was injured on a working day. The journey’s purpose, route, timing, and supporting evidence may be relevant.

What Documents Should You Keep?

The documents depend on the case, but the following records can be important:

1. The initial medical report and treatment records.
2. Subsequent diagnostic reports and rehabilitation records.
3. The work injury notification and reference number.
4. Evidence of the accident’s date, location, and circumstances.
5. Relevant workplace records or employer instructions.
6. GOSI registration and contributory wage records.
7. Any medical board disability assessment and subsequent decision.

Keep copies of the documents submitted and the dates of communication with your employer and GOSI.

You can also review the firm’s guide to social insurance obligations for employers (Arabic) if the dispute concerns registration or employer reporting obligations.

How to Report a Work Injury to GOSI

If you are injured at work, obtain appropriate medical attention first. Then make sure the injury is reported promptly.

Under the applicable occupational hazards reporting rules:

• The injured worker, or their representative, should notify the employer within seven days, provided their condition permits.
• The employer should report an injury for which first aid is insufficient within three days of becoming aware of it or receiving notification.

Late reporting can affect entitlement to the daily allowance for the period before notification. The regulations provide for consideration of justifiable reasons for delay. These requirements are explained in the GOSI guidance on occupational injury reporting.

Reporting an Injury as an Employee

GOSI provides an online service for contributors to report occupational injuries.

The process generally involves:

1. Sign in to the GOSI platform.
2. Select the occupational hazards services.
3. Choose the injury reporting option.
4. Enter the incident information.
5. Upload relevant supporting documents when requested.
6. Submit the report and retain the tracking number.

The official GOSI Report an Occupational Injury service explains the online procedure. According to the service description, a contributor’s electronic report is referred to the employer for a response. If the employer does not respond within the prescribed platform period, the report may be referred to GOSI for further handling. Employers may use the separate GOSI work injury reporting service for businesses.

Do not wait until a disability percentage has been determined before reporting the initial accident. Injury reporting, treatment, and the final assessment of permanent disability are separate stages.

What If GOSI Rejects the Injury Claim or Disability Assessment?

The correct next step depends on the decision being challenged. There is an important difference between a decision that an accident was not an occupational injury and a medical board decision assigning a particular disability percentage.

If You Disagree With the Disability Percentage

Obtain the medical board’s decision and review the evidence considered. You may need to identify:

• The medical findings you dispute.
• Relevant reports that were not considered.
• Whether your condition has stabilised.
• Whether the occupational disability assessment reflects the applicable medical evaluation criteria.

GOSI offers an online Appeal the Disability Decision service for decisions issued by its primary medical committees.

For cases governed by Article 50 of the 2024 Social Insurance Law, an appeal to the appellate medical board must be filed within 30 days of notification of the decision. Do not assume that the same deadline applies to every decision issued under a different scheme or transitional provision. Verify the period applicable to the case.

If You Disagree With an Administrative GOSI Decision

If the dispute concerns recognition of the injury, contribution information, or another administrative decision, the appropriate review mechanism may be different. GOSI provides a Request Review or Objection to a GOSI Decision service, subject to its eligibility and procedural requirements.

Before submitting an objection, prepare a clear statement that identifies:

• The decision and date of notification.
• The reason you believe the decision is incorrect.
• The documents supporting your position.
• The action or correction requested.

A legal review can help determine whether the dispute concerns medical assessment, insurance records, statutory entitlement, or another issue.

For cases requiring local legal assistance, the firm’s employment lawyer service in Dammam (Arabic) provides information about the available employment-law services. Not every GOSI dispute necessarily belongs before a labor court, so the appropriate jurisdiction must be checked.

Common Mistakes That Can Affect Work Injury Compensation

A compensation figure may be inaccurate even when the arithmetic looks correct.

Before challenging the amount, identify whether the disagreement concerns the disability assessment, the recognised wage, or the legal calculation method. Each issue requires a different form of evidence.

Work Injury Compensation vs. Non-Occupational Disability

An occupational injury arises from an accident or disease recognised as work-related under the relevant rules. A non-occupational disability, by contrast, concerns incapacity that does not fall within the occupational hazards provisions.

These are distinct routes to benefits. For instance, an employee who develops a chronic medical condition unrelated to work should not automatically use the occupational injury lump-sum formula. Different entitlement conditions may apply. GOSI provides a separate Non-Occupational Disability Benefit service. T

Frequently Asked Questions about Work Injury Compensation in Saudi Arabia

What Should You Do Before Claiming Compensation?

Before relying on a compensation estimate, confirm four facts:

1. Has GOSI recognised the incident as an occupational injury?
2. What disability percentage has the competent medical board assessed?
3. What contributory wage is officially recorded for benefit calculation?
4. Which statutory and transitional rules apply to the contributor?

With those details, you can assess whether the expected payment should be a daily allowance, lump-sum compensation, or monthly benefit, and whether the issued decision requires further examination.

Need to Review a Work Injury Compensation Decision?

If you have received a disability assessment, compensation decision, or injury claim rejection and are uncertain about the calculation, consider obtaining an individual legal assessment before taking further action.

You can contact the firm’s Dammam branch to enquire about having your compensation decision and supporting documents reviewed. You may also learn about the firm and its legal services before sharing details of your case.

This article provides general information about Saudi law and is not a personalised legal opinion. Entitlement depends on the applicable legislation, contribution records, medical findings, and decisions of the competent authorities. 

المحامي محمد عبود الدوسري