Payroll Software in Saudi Arabia (KSA)

Written by Global Payroll Team

Last updated April 27, 2026

Expert Reviewed

Mercans Payroll Software is a strong solution for efficient, compliant, and streamlined payroll management in Saudi Arabia. Crafted to meet the specific requirements of Saudi payroll, our Payroll Software Saudi Arabia helps employers manage payroll processing, deductions, statutory reporting, and salary payments with confidence.

Mercans Payroll Software Saudi Arabia is an all-in-one native SaaS solution for complete digitalization of your payroll process. As a native global payroll SaaS covering more than 160 countries, it is more than just a tool. It is an enterprise-wide solution tailored for businesses of all sizes, from single entities to global conglomerates. Its scalable architecture and seamless integration across modules enhance the user experience with an intuitive interface that is both simple and effective.

Trusted the world over

Aligned with GOSI – General Organization of Social Insurance

GOSI (Saudi Arabia)

Our Payroll software is designed to support payroll processes connected with the statutory framework of Saudi Arabia, including employee registration, contribution calculations, and payroll records related to social insurance administration overseen by GOSI. This helps employers manage mandatory insurance related obligations for covered employee categories with greater accuracy and consistency.

Mercans payroll software for Saudi Arabia (KSA) is supported by audited internal control and information security frameworks. Our SOC 1 and SOC 2 audits support our commitment to information privacy, IT security, and confidentiality. We are also ISO certified with ISO 20000 and ISO 27001, supporting IT service excellence and robust information security.

Aligned with GOSI - General Organization of Social Insurance

Why Choose Mercans

Native SaaS and Payroll platform
OWASP ASVS aligned
Suitable for enterprise businesses
Supports Multiple Currencies
Global presence and multi-country payroll capabilities
Trusted by Fortune Global 500 and multinationals
More than 100 inbound and outbound integrations are available today
Supports payroll processes aligned with Saudi statutory requirements
GDPR aligned
SOC 1 and SOC 2 audited
Manage All Employment Types – Employees, Freelancers, Contractors, Expats
ISO 20000 and ISO 27001 certified

Payroll Software Modules

Mercans Saudi Payroll Software provides an advanced, user-friendly online portal designed to streamline and enhance HR and payroll functions for both managers and employees in Saudi Arabia.

Our cutting-edge software modules are crafted to ensure maximum efficiency, compliance, and a top-tier user experience. Here’s what you can expect:

Manager Self Service

Empowers managers to manage HR tasks such as approvals, performance tracking, and employee oversight directly through the platform.

Employee Self Service

Gives employees direct access to their personal information, payroll details, and HR resources, promoting transparency and ease of use.

Employee Help Desk

Offers a centralized support system where employees can quickly resolve payroll and HR-related issues, boosting overall satisfaction.

Data Exchange

Enables smooth integration with various systems and platforms, enhancing data management and reducing the risk of errors.

eDrive and Workflows

Automates HR processes with configurable workflows and document management, ensuring greater efficiency and support for compliance standards.

Time & Attendance

Accurately tracks employee work hours, attendance, and productivity, integrating seamlessly with payroll calculations.

Leave Management

Manages all types of employee leave, including vacation and sick leave, with automated approval workflows and precise tracking.

Loans & Expenses

Processes employee loans and expense claims accurately, integrating seamlessly with payroll for streamlined financial management.

Features of Payroll Software in Saudi Arabia

Statutory Compliance

Mercans Payroll Software KSA supports payroll administration in line with Saudi Arabia’s Labor Law and related payroll requirements, including social insurance related processes, wage protection workflows, and leave administration. Our system is designed to support accurate and well-controlled payroll management aligned with local requirements.

Saudi Localization

Our payroll software is specifically localized for Saudi Arabia, helping it align with local legal requirements and practices. This tailored approach helps you manage payroll efficiently while supporting Saudi Arabia’s labor law and payroll reporting needs.

Off-Cycle Payroll

Manage off-cycle payroll needs with Mercans, including back-dated payments, benefits adjustments, and payroll corrections. Flexibly handle exceptional payroll scenarios.

Multi-Currency Support

Efficiently manage payroll in multiple currencies with Mercans’ intuitive multi-currency support, catering to your global business needs.

Reconciliation and Operational Reporting

Transform payroll data management with Mercans payroll software. Perform data comparisons, handle discrepancies, and auto-generate reconciliation reports to streamline your payroll operations.

Leave Management

Mercans simplifies leave management with an intuitive interface that offers automated approval workflows, accurate leave balance tracking, and seamless integration with your leave policies. Enjoy effortless leave management with built-in statutory rules and customizable options.

Bonus Management

Our Bonus Management System streamlines bonus tracking, enhancing transparency and accuracy in your incentive programs. Whether handling one-time or recurring bonuses, Mercans makes it easy to motivate and retain your top talent.

Benefits Management

Mercans’ Benefits Management Software enhances engagement and controls costs by managing employee benefits efficiently. Track eligibility, handle enrollments, and process payments to ensure your employees receive their entitled benefits.

Expense Management

Efficiently handle all expense claims with Mercans’ unified dashboard. Create, validate, and approve expense submissions with ease, ensuring smooth integration with your financial systems. Enjoy quick reimbursements with real-time updates and one-click approval.

GOSI Calculations

Mercans Payroll Software KSA supports calculation of mandatory monthly contributions for employers and employees for covered categories under the Saudi social insurance framework, based on configured contributory wages and applicable rules.

Wage Protection System (WPS) Compliance

Our WPS-oriented salary processing functionality supports employer salary processing in line with Saudi wage protection workflows and file preparation requirements, helping organizations manage salary transfers and related reporting in the Kingdom of Saudi Arabia.

Mudad Integration

Mercans Payroll Software supports integration with Mudad related payroll workflows in Saudi Arabia, helping companies manage salary transfer processes, file submission steps, payment status monitoring, and related wage protection activities through Saudi banking channels.

Overtime Pay Calculation

Mercans’ payroll software tracks employee overtime accurately, offering features such as automated tracking, multi-level approval, and real-time visibility. Customize overtime rules to fit your specific needs and manage your workforce’s overtime efficiently.

Flight Ticket Module

Mercans integrates with relevant workforce administration workflows, helping organizations manage employee travel benefit related records and connected administrative processes in Saudi Arabia.

Leave Encashment

Simplify leave encashment with Mercans’ software. Manage compensation requests and changes with ease, supporting accurate calculations and reduced administrative risk in KSA.

Loan Management

Manage employee loans effortlessly with Mercans’ comprehensive solution. Keep track of repayments and maintain control over loan recoveries to ensure smooth financial operations.

Payslips Delivery

Generate and distribute payslips in multiple formats, including mobile app, SMS, email, or bulk printing. Mercans ensures flexible and accessible payslip delivery tailored to your needs.

Payroll Workflows

Streamline payroll processing with Mercans’ workflow automation, which includes secure approval paths and comprehensive access management. Maintain control and efficiency with documented procedures and role assignments

Payroll Track Record

Mercans provides robust record-keeping for every payroll processed. Maintain a comprehensive history of payroll activities to ensure transparency and accuracy.

Gratuity Calculation

Automate gratuity calculations with Mercans, recognizing the efforts of long-serving employees. Generate monthly accrual sheets and draft accounting entries effortlessly.

End of Service Calculations

Mercans Payroll Software supports precise end-of-service compensation calculations in line with local regulations, so you can manage final settlements without unnecessary complexity.

Retroactive Calculation

Handle predated HR changes efficiently with automated retroactive calculations. Process adjustments for individuals or groups of employees with ease.

Full and Final Settlement Calculation

Streamline the full and final settlement process with automated calculations for pending salaries, benefits, and other dues. Ensure prompt and accurate settlements for departing employees.

Hijri Calendar Support

Mercans supports the Hijri calendar, offering seamless integration for payroll calculations that align with Islamic dates.

Employee life cycle

Leave Management

Bonus Management

Benefits Management

Expense Management

Compliance

GOSI Calculations

Wage Protection System (WPS) Compliance

Mudad Integration

Add-ons

Overtime Pay Calculation

Flight Ticket Module

Mercans integrates with relevant workforce administration workflows, helping organizations manage employee travel benefit related records and connected administrative processes in Saudi Arabia.

Leave Encashment

Simplify leave encashment with Mercans’ powerful software. Manage compensation requests and changes with ease, supporting accurate calculations and minimizing risk in KSA.

Loan Management

Manage employee loans effortlessly with Mercans’ comprehensive solution. Keep track of repayments and maintain control over loan recoveries to ensure smooth financial operations.

Payslips Delivery

Generate and distribute payslips in multiple formats, mobile app, SMS, email, or bulk printing. Mercans ensures flexible and accessible payslip delivery tailored to your needs.

Payroll Workflows

Payroll Track Record

Mercans provides robust record-keeping for every payroll processed. Maintain a comprehensive history of payroll activities to ensure transparency and accuracy.

Benefits

Gratuity Calculation

Automate gratuity calculations with Mercans, recognizing the efforts of long-serving employees. Generate monthly accrual sheets and draft accounting entries effortlessly.

End of Service Calculations

Mercans Payroll Software supports precise end-of-service compensation calculations in line with local regulations, so you can focus on what matters most without unnecessary complexity.

Retroactive Calculation

Handle predated HR changes efficiently with automated retroactive calculations. Process adjustments for individuals or groups of employees with ease.

Full and Final Settlement Calculation

Streamline the full and final settlement process with automated calculations for pending salaries, benefits, and other dues. Ensure prompt and accurate settlements for departing employees.

Hijri Calendar Support

Mercans supports the Hijri calendar, offering seamless integration for payroll calculations that align with Islamic dates.

Payroll Implementation

Mercans’ payroll system implementation for Saudi Arabia is meticulously designed to ensure a seamless transition to our advanced payroll system. This process is tailored to each client’s unique needs, with timelines and deliverables adjusted based on factors like complexity, data availability, and the number of parallel runs required. Here’s a detailed overview of our implementation process

Implementation Planning

We initiate the project by assigning resources and defining roles. A kick-off meeting is held to outline objectives and confirm the project scope. We develop a detailed implementation calendar and plan, providing a welcome package with project details and key contacts. Weekly updates via calls or emails are scheduled to monitor progress, and we obtain final sign-off on the project scope.

Requirements Gathering

Workshops are conducted to understand and document client needs. We complete business blueprinting to detail these requirements and perform a gap analysis. Customization needs are defined and documented, ensuring that they align with client expectations. A comprehensive list of payroll-specific requirements is established, and sign-off is obtained to confirm accuracy.

System Configuration

We configure the payroll system to meet Saudi Arabian requirements, customizing it to fit local needs. The wage type catalog is tailored for relevant pay components, and data dictionaries and interfaces are set up for seamless integration. Reports are adapted to comply with Saudi regulations, and Employee Self-Service (ESS) and Manager Self-Service (MSS) features are configured.

Data Migration

Employee and payroll master data are migrated and validated for accuracy. We ensure data integrity and completeness, obtaining sign-off on the migrated data before proceeding with further steps.

Test Payroll Run

Simulation payrolls are run to validate system configurations, including parallel runs with existing systems. Test runs are signed off to confirm accuracy, followed by end-to-end testing and user acceptance testing (UAT). Any issues identified during testing are addressed promptly.

Payroll Management Transition & Sign-off

A transition plan is developed for moving to live payroll, including user training and a hypercare plan for post-go-live support. An escalation plan is created for critical issues, and a fallback plan is established for potential disruptions. The go-live checklist is completed, and final sign-off is obtained to ensure a smooth launch of the payroll system.
With Mercans’ payroll system, you can expect a comprehensive and efficient transition that supports Saudi Arabian regulatory standards and enhances your payroll management capabilities.

Payroll Integration

Mercans’ Payroll Software stands out for its extensive global reach and robust integration capabilities, serving businesses across more than 160 countries, including Saudi Arabia. Our software is designed to streamline payroll processes, support compliance with local regulations, and enhance operational efficiency.

Integration with Local Authorities and Payroll Channels

General Organization for Social Insurance (GOSI)

Mercans’ Payroll Software is designed to support payroll processes connected with the General Organization for Social Insurance (GOSI) in Saudi Arabia. This helps employers manage contribution related calculations, payroll records, and reporting workflows associated with mandatory contributions for covered categories, as well as wage protection related payroll administration.

Integration with HCM/ HRMS/ Workforce management platforms

This integration enhances productivity by connecting payroll processing with HR administration, allowing for smooth data flow and reducing errors. Employees can manage their payroll tasks directly through Employee Self Service (ESS), with approvals and updates instantly reflected in the payroll system.

Custom Integrations

Mercans also offers tailored API integrations for various industries, ensuring that our payroll software meets specific business needs. Our custom integrations include:

Custom API Integrations

Designed for diverse sectors such as hospitality, transport, sports, construction, and healthcare.

Xero Integration

Connects seamlessly with other applications, reducing manual data entry and minimizing errors. Recent enhancements have added new integrations to boost connectivity and efficiency.

Mercans’ Payroll Software delivers a comprehensive and adaptable solution for payroll management in Saudi Arabia, combining local payroll support with advanced integration capabilities to support your business’s needs.

Payroll Reports – Standard, Statutory and Year-End Reports

Payroll managers can efficiently handle statutory and operational reporting with Mercans’ payroll system, which provides comprehensive tools for generating reports required for payroll administration, internal controls, and employer processes connected with organizations such as GOSI and wage protection related workflows. These reports can be accessed and managed from the Regulatory and Tax Reporting section of the system.

Report Overview

Field	Correct Details
Purpose	Used to register or update an individual worker’s GOSI record under the employer’s sponsorship, including new joiners and employees leaving service.
Frequency	As required, when an employee is registered, updated, or terminated in GOSI.
Results	Includes employer information, employee personal details, employment information, contribution wage details, registration data and termination or exclusion details where applicable.
Authority	General Organization for Social Insurance (GOSI).

Field	Correct Details
Purpose	Monthly GOSI contribution report showing joiners, leavers and social insurance contributions for Saudi and non-Saudi employees.
Frequency	Monthly.
Results	Includes employer information, employee contribution wages, Saudi and non-Saudi employee details, new hires, terminations and monthly GOSI contribution amounts.
Authority	General Organization for Social Insurance (GOSI).

Field	Correct Details
Purpose	Statutory monthly report listing newly hired and terminated employees under the employer’s GOSI registration.
Frequency	Monthly.
Results	Includes employer information, new hire details, termination details and monthly social insurance contribution information. Each report page displays 10 joiners and 10 leavers.
Authority	General Organization for Social Insurance (GOSI).

Field	Correct Details
Purpose	Monthly statutory report containing disability-related information for employees and contingent workers, where applicable.
Frequency	Monthly.
Results	Displays legal-employer-level disability information for reporting and compliance purposes.
Authority	Ministry of Health / relevant Saudi government authority, based on payroll system configuration.

IPE Consolidated Report
Field	Correct Details
Purpose	Consolidates monthly GOSI-related employee movement and payroll information, including new hires, terminations and relevant salary details.
Frequency	Monthly.
Results	Includes employer information, employee information, salary details, joining information, termination details and termination reasons where applicable.
Authority	General Organization for Social Insurance (GOSI).

IPE Annual Salary Report
Field	Correct Details
Purpose	Provides the annual list of employees as of January, including current and historical GOSI reference earnings.
Frequency	Yearly.
Results	Includes employees as of January of the reporting year and shows GOSI reference earnings for the current year and up to eight previous years.
Authority	General Organization for Social Insurance (GOSI).

Wage Protection System Payment Output File
Field	Correct Details
Purpose	Details wage amounts to be paid to employees through electronic salary transfer / EFT payment methods.
Frequency	Monthly / Each salary payment cycle.
Results	Shows wage amounts to be credited to employee bank accounts and is sent to banks for salary processing under the Wage Protection System.
Authority	Ministry of Human Resources and Social Development / Bank / WPS platform.

Mercans’ payroll software supports accurate and timely reporting, helping payroll managers meet operational and regulatory requirements with ease.

Benefits of Payroll Software

Mercans delivers a robust payroll solution designed to enhance your payroll administration and HR processes. Here’s how our software can benefit your organization in Saudi Arabia:

Efficient Payroll Management
Additional Key Features

In-House Control

Manage payroll seamlessly through our application, eliminating the need for external processors and ensuring direct control over payroll operations.

Integrated HR and Leave Management

Streamline payroll, HR tasks, and employee leave management within a single platform, simplifying your administrative workload.

Reduced Manual Intervention

Automate routine payroll tasks to reduce errors and ensure precise processing.

Customizable Workflows

Tailor workflows to fit your specific business needs, improving operational efficiency.

Time Efficiency

Leverage automation to free up time for more strategic activities.

Seamless Integration

Effortlessly connect with major HR platforms and systems like SAP SuccessFactors, Workday, and Oracle for a cohesive workflow.

Centralized Data Management

Consolidate all employee data in one centralized location for easy access, updates, and analysis.

Employee Access

Provide employees with 24/7 access to their personal information.

24/7 Access

Access payroll data anytime, anywhere, for maximum convenience.

Transparent Pricing

Enjoy a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Receive expert assistance and guidance to fully leverage the software’s capabilities.

Secure Data Management

Ensure the protection and integrity of your data with secure online processing and controlled backup practices.

Compliance Assurance

Stay up-to-date with the latest fiscal and employment regulations through regular payroll rule maintenance and updates.

Mercans’ payroll software offers a comprehensive, secure, and user-friendly solution that streamlines your payroll processes, allowing you to focus on what matters most, your people

Efficient Payroll Management

In-House Control

Manage payroll seamlessly through our application, eliminating the need for external processors and ensuring direct control over payroll operations.

Integrated HR and Leave Management

Streamline payroll, HR tasks, and employee leave management within a single platform, simplifying your administrative workload.

Reduced Manual Intervention

Automate routine payroll tasks to reduce errors and ensure precise processing.

Customizable Workflows

Tailor workflows to fit your specific business needs, improving operational efficiency.

Time Efficiency

Leverage automation to free up time for more strategic activities.

Seamless Integration

Effortlessly connect with major HR platforms and systems like SAP SuccessFactors, Workday, and Oracle for a cohesive workflow.

Centralized Data Management

Consolidate all employee data in one centralized location for easy access, updates, and analysis.

Employee Access

Provide employees with 24/7 access to their personal information.

Additional Key Features

24/7 Access

Access payroll data anytime, anywhere, for maximum convenience.

Transparent Pricing

Enjoy a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Receive expert assistance and guidance to fully leverage the software’s capabilities.

Secure Data Management

Ensure the protection and integrity of your data with secure online processing and controlled backup practices.

Compliance Assurance

Stay up-to-date with the latest fiscal and employment regulations through regular updates.

Mercans’ payroll software offers a comprehensive, secure, and user-friendly solution that streamlines your payroll processes, allowing you to focus on what matters most, your people

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.

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FAQs

How does payroll software integrate with the Wage Protection System (WPS) via the Mudad platform?

Mercans payroll software integrates directly with the Mudad platform to ensure seamless Wage Protection System compliance by securely submitting salary payments and reports, guaranteeing full transparency and regulatory adherence.

What registrations and government portals such as GOSI, Qiwa, Muqeem, and Absher must a payroll system support?

Mercans automates employer and employee registrations and updates across GOSI, Qiwa, Muqeem, and Absher, streamlining compliance and reducing administrative effort while ensuring accurate statutory reporting.

How are social insurance contributions (GOSI), expatriate levies, and end of service benefits (EOSB) calculated and managed by the software?

Mercans calculates and manages GOSI contributions, expatriate levies, and end of service benefits in full compliance with Saudi labour laws, ensuring accurate deductions, timely payments, and proper record keeping.

What compliance risks and penalties such as salary delays, submission errors, and Saudization should a payroll SaaS help avoid?

Mercans payroll software helps avoid compliance risks and penalties by automating payroll processes, ensuring on time salary payments, accurate statutory filings, and adherence to Saudization requirements.

Can the system handle flexible pay structures such as multiple frequencies, overtime, and allowances while ensuring digital traceability and record retention?

Mercans supports complex pay structures including multiple pay frequencies, overtime calculations, and allowances, while providing full digital traceability and secure record retention to meet regulatory and organisational requirements.