ArcHR
HR and Payroll Software for Construction Companies in Saudi Arabia.
GOSI contribution calculation + CSV export. Mudad (WPS) SIF file generation. Hazard insurance, GOSI, and Mudad SIF — all calculated from one payroll run.
· by ArcHR Compliance Team
GOSI contribution calculation + CSV export. Mudad (WPS) SIF file generation. Hazard insurance, GOSI, and Mudad SIF — all calculated from one payroll run.
ArcHR is built for Saudi Arabia construction companies with 5 to 200 employees — Large site-based workforce — civil workers, engineers, supervisors — often on accommodation and food allowances with shift or project-based employment.
GOSI + occupational hazard for large site workforces — construction has the highest hazard rate
Saudization compliance — construction is a heavily audited sector
Iqama tracking across project-based workforces that move between sites
Mudad SIF compliance for accommodation-inclusive payroll structures
Compliance scenarios
GOSI occupational hazard at 2% across large site workforces
Construction has the highest occupational hazard exposure in the GOSI framework, with a 2% employer-paid contribution on wages for every employee regardless of nationality. A Riyadh contractor with 200 site workers underpaying hazard insurance by even 0.5% accumulates significant GOSI back-payments during annual audits. Saudi nationals additionally require pension GOSI. ArcHR applies the 2% hazard rate to all employees automatically, calculates pension GOSI for Saudi staff separately, and exports monthly contribution files for GOSI portal submission.
Saudization compliance in a heavily audited construction sector
Construction is among the most heavily audited sectors for Nitaqat compliance in Saudi Arabia, with HRSD conducting site visits and cross-checking Qiwa records against on-site headcount. A Dammam contractor in Red band faces blocked visa issuance for new workers — halting project timelines. ArcHR tracks Saudization across site, engineering, and admin roles, displays the current Nitaqat colour band, and helps project managers plan Saudi hiring in safety, supervision, and engineering positions that satisfy both project needs and compliance.
Mudad SIF for accommodation-inclusive construction payroll
Saudi construction firms provide site accommodation and meals as part of employment packages, and the total package must be declared in Qiwa contracts and reflected in Mudad salary transfers for Saudi nationals. Under-declaring accommodation value in Mudad while providing it on-site creates HRSD contract mismatches. ArcHR itemises accommodation, food, and transport allowances in payroll, ensures Qiwa contract alignment, and generates Mudad SIF exports that match actual bank transfers for Saudi site workers and engineers.
SME example
Eastern Province Construction in Dammam runs 175 site workers and 25 engineers. GOSI hazard insurance was miscalculated for six months before a portal audit flagged AED 42,000 in back-payments. ArcHR now applies 2% hazard to all employees and pension GOSI to Saudi staff correctly. They moved from Red to Yellow Nitaqat after hiring Saudi safety officers, and Mudad exports complete from one payroll run each month.
Workforce profile
Large site-based workforce — civil workers, engineers, supervisors — often on accommodation and food allowances with shift or project-based employment.
Hazard insurance, GOSI, and Mudad SIF — all calculated from one payroll run.
2%
occupational hazard rate
applies to ALL construction employees regardless of nationality — built into ArcHR
Mobile
attendance for site workers
clock in from any location via ArcHR mobile app
Frequently asked questions
What is the GOSI occupational hazard rate for construction companies in KSA?
The occupational hazard (work injuries) contribution is 2% of the employee's wage, paid entirely by the employer. This applies to all employees regardless of nationality. ArcHR calculates this contribution separately from the pension GOSI for Saudi nationals.
What GOSI rate applies to construction site labourers versus engineers in KSA?
Occupational hazard at 2% applies uniformly to all roles. Pension GOSI at 10% employee and 12% employer applies only to Saudi nationals regardless of whether they are engineers or labourers. ArcHR calculates the correct split per employee based on nationality, not job category.
How does Nitaqat affect new visa applications for construction workers in KSA?
Companies in Red or Yellow Nitaqat bands face restrictions on new visa issuance for expatriate workers. ArcHR displays your current band and the hiring actions needed to reach Green before project mobilisation, preventing visa application rejections that delay construction timelines.
Do construction companies need to report Saudi engineer salaries separately in Mudad?
All Saudi national employees must be reported through Mudad with salary transfers through approved banks. ArcHR includes engineers, supervisors, and admin staff in the same Mudad SIF export as site labourers, with individual IBAN validation before submission.
What end-of-service rules apply when a construction project ends in KSA?
Project completion does not automatically terminate employment unless contracts specify fixed terms ending with the project. Workers on fixed-term contracts receive EOS award based on completed service. ArcHR calculates individual settlements for project-completion releases and tracks final Mudad-reported payments.
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