What does a driver really cost the company?
A driver's salary is only part of what the company pays. Housing and transport allowances, overtime, the employer's social insurance share, government fees for expatriate workers, medical insurance, the end-of-service gratuity that builds up every month, air tickets, training, licenses and the cost of recruiting a replacement all add to it. Together they are the fully loaded cost of the driver.
This driver cost calculator adds those items for Saudi Arabia, the UAE or Oman, for a national or an expatriate driver. Choosing the country and nationality fills in typical starting values in the local currency; every value stays editable. It returns the cost per month and per year, the cost per working hour and per kilometer, a breakdown by item, the total for your driver team and a national vs expatriate comparison.
Why the fully loaded driver cost matters
- Pricing and tenders. A delivery or transport rate built on salary alone misses a large share of what each driver costs.
- Own drivers or outsourcing. Compare the loaded cost per hour or per kilometer with what a contractor or a driver supply company charges.
- Budgeting headcount. Levy, permit and insurance renewals arrive as large yearly bills; spreading them per month avoids surprises.
- Localization plans. Seeing a national and an expatriate driver side by side shows where the cost difference really sits.
Which employer costs apply in Saudi Arabia, the UAE and Oman?
The defaults below reflect public guidance as of October 2026. Rates and fees change, and they differ by company size, sector, emirate and contract, so verify current requirements with the authority named before relying on a figure. Nothing on this page is legal advice.
| Item | Saudi Arabia | UAE | Oman |
|---|---|---|---|
| Social insurance, national driver | GOSI: annuities 9% for employees insured before 3 July 2024; for new entrants 10% from July 2026, rising 0.5 points a year to 11%. Plus occupational hazards 2% and SANED 0.75%. Default 12.75% (new-entrant rate) on basic + housing, cap SAR 45,000. | GPSSA: employer 12.5% for most private-sector salaries (15% where the state's 2.5% share does not apply). Contribution salary AED 3,000 to 70,000. Abu Dhabi nationals fall under ADPF. | Social Protection Fund: employer 14.5% (pension 11%, work injury 1%, maternity 1%, sick leave 1%, job security 0.5%), wage cap OMR 3,000. |
| Social insurance, expatriate driver | GOSI occupational hazards 2%. | No pension contribution. | Branches for non-Omanis are being phased in by the Social Protection Fund. Default 1%. |
| Government fees, expatriate | Expat levy SAR 800 a month in most establishments (check Qiwa for your rate) and iqama renewal SAR 650 a year. Default 750 a year for iqama and other fees. | MOHRE two-year work permit fee by company category, plus visa, Emirates ID and medical test. Default AED 2,500 a year. | Work permit now valid for 24 months, with lower fees for employers that meet Omanization targets. Default OMR 120 a year. |
| End-of-service gratuity | Saudi Labor Law: half a month's wage for each of the first five years, one month for each year after, on the full wage. | Federal Decree-Law No. 33 of 2021: 21 days' basic wage per year for the first five years, 30 days after, capped at two years' wage. Expatriates only; nationals are covered by GPSSA. | Labour Law (Royal Decree 53/2023): one month's basic wage per year of service for non-Omanis. A 9% savings scheme run by the Social Protection Fund is due to replace it, no later than July 2027. |
| Annual leave | 21 days, 30 after five years with the employer. | 30 days. | 30 days. |
| Driver licensing | TGA requires a professional driver card for commercial transport drivers; deadlines were extended in 2026. | License renewal and any emirate permits for the activity. | License renewal and any activity permits. |
Authorities: Saudi Arabia: GOSI, Ministry of Human Resources and Social Development (HRSD) and Qiwa, Transport General Authority (TGA). UAE: Ministry of Human Resources and Emiratisation (MOHRE), General Pension and Social Security Authority (GPSSA). Oman: Ministry of Labour, Social Protection Fund.
What you need to use the calculator
| Input | Where to find it | Tip |
|---|---|---|
| Basic salary and allowances | Employment contract, payroll | Enter company accommodation as a monthly cost if you provide it instead of an allowance. |
| Overtime | Payroll, timesheets, trip reports | Use a monthly average over several months. |
| Social insurance rate and wage | GOSI, GPSSA or Social Protection Fund statements | Check whether the driver joined before or after a rate change. |
| Levy, permits and visas | Qiwa, MOHRE, Ministry of Labour invoices | Spread multi-year fees over the years they cover. |
| Medical insurance, tickets, training | Insurance policy, HR budget | Include license renewal and the professional driver card where required. |
| Recruitment cost and tenure | Agency invoices, HR records | Use the average time drivers actually stay with you. |
How do you calculate the fully loaded cost of a driver?
Monthly cost per driver
End-of-service gratuity accrual
The accrual spreads the gratuity due at the expected leaving date evenly over the years worked. In the UAE the entitlement is capped at 24 months of wage. Set both gratuity fields to zero when a pension or savings scheme replaces the gratuity.
Per hour, per kilometer and team
The national vs expatriate comparison keeps your inputs for the profile you selected and uses the default values of the other profile, in the same country and currency.
Worked example: an expatriate driver in Saudi Arabia
An expatriate driver in Saudi Arabia, with the country's default values in SAR: basic 2,000, housing 500, transport 200 and food 300, so pay is 3,000 a month.
- Overtime: 10 hours × 12.50 = 125. GOSI occupational hazards: 2% × (2,000 + 500) = 50.
- Government fees: levy 800 + (iqama and other fees 750 ÷ 12 = 62.50) = 862.50. Medical insurance 1,200 ÷ 12 = 100.
- Gratuity: over a 3-year tenure the driver earns half a month per year, 1.5 months in total. 3,000 × 1.5 ÷ 3 ÷ 12 = 125 a month.
- Air ticket 1,500 ÷ 12 = 125, uniform, training and licenses 900 ÷ 12 = 75, recruitment 7,000 ÷ 36 = 194.44.
- Total: 4,656.94 a month, or 55,883 a year: 2.3 times the basic salary. Costs on top of pay and overtime come to 1,532, or 51% of pay.
- Working time: (26 × 12 − 21 − 10) × 8 + 10 × 12 = 2,368 hours, so the driver costs 23.60 an hour. At 4,000 km a month that is 1.16 per km.
- Ten such drivers cost 46,569 a month and 558,833 a year. At the national defaults (basic 4,500, GOSI 12.75%), a Saudi driver costs about 7,581 a month.
How to read your results
- On-cost share shows how much the company pays on top of salary and overtime. For expatriate drivers in Saudi Arabia, the levy is usually the largest single item.
- Cost per working hour is the figure to compare with contractor or driver supply rates, since it already counts leave and holidays.
- Cost per kilometer is the driver share of your trip cost; add fuel, maintenance and vehicle cost for the full cost per kilometer.
- National vs expatriate compares one of your profiles with the defaults of the other. Replace the defaults with your real offer before using it in a plan.
Common mistakes when costing drivers
- Counting salary only. Fees, insurance and gratuity can add a large share on top of pay.
- Ignoring gratuity until someone leaves. It is a liability that grows every month; accrue it.
- Booking yearly fees in one month. Levy, iqama, visa and insurance renewals belong to the whole year.
- Using calendar hours. Leave and public holidays are paid but not worked, so the real cost per hour is higher.
- Forgetting turnover. A short tenure spreads recruitment and visa costs over fewer months.
Assumptions and limits
Results are estimates based on the values entered. Default rates and fees are editable starting values as of October 2026, not official figures for your company; verify them with GOSI, HRSD and Qiwa, MOHRE and GPSSA, or the Oman Ministry of Labour and Social Protection Fund. Gratuity assumes the full entitlement at the end of the expected tenure; resignation, contract type and service before a law change can reduce or change it. Converted defaults for other currencies use approximate exchange rates. The calculator does not include vehicle, fuel or fine costs, bonuses, end-of-year payments or dependents' fees paid by the employee. It is not legal, payroll or tax advice.