Highlights

• GOSI manages social insurance in Saudi Arabia, ensuring employee protection and smooth HR processes.
• Employers must register, submit the required documents, enroll staff, and track contributions through the GOSI portal.
• Contributions cover pensions, disability, and healthcare, calculated based on salary and allowances.
• Saudi employees share contributions with employers, while expatriates’ contributions are fully employer-paid.
• Failing to comply may lead to fines, legal penalties, and back payments; tools like Paismo help manage compliance.

Understanding GOSI compliance in Saudi Arabia can be challenging for many employers. With so many rules around employee registration, contributions, and salary updates, it’s easy to make mistakes. That’s why having the right tools, like HR software in UAE and an efficient HR system, can make managing GOSI much simpler. In this blog, we will guide you through everything employers need to know, from contributions to compliance, so you can stay on track and avoid penalties while protecting your workforce.

What Is GOSI in Saudi Arabia?

The General Organization for Social Insurance (GOSI) in Saudi Arabia is a government agency responsible for managing Saudi Arabia’s social insurance system. It operates under a board of eleven directors representing government entities, employers, and insured workers. GOSI Saudi ensures the efficient implementation of social insurance regulations, establishes a structured framework for compliance, and enhances workforce protection throughout the Kingdom.

How to Register on the GOSI Portal

Registering with GOSI is an essential step for employers to stay compliant with Saudi labor laws. The process is simple when approached systematically:

• Create an Account: Visit the official GOSI portal and set up your business account by providing key company details.
• Submit Required Documents: Provide all necessary documents, including company registration, tax ID, and employee details for both Saudi and non-Saudi staff.
• Enroll Employees: Once your business is registered, add your employees’ personal information, including employment status, salary, and identification data.
• Verify Contributions: GOSI calculates employee contributions automatically based on salaries. Employers must pay these contributions on a monthly basis to remain compliant.
• Obtain the GOSI Certificate: After completing registration and payments, you can generate your GOSI certificate electronically. This certificate is valid for 30 days and must be updated regularly to maintain compliance.

Following these steps ensures your business aligns with GOSI regulations and supports smooth HR & payroll operations.

Benefits of GOSI

GOSI provides essential social protection and financial security for employees, supporting both individuals and businesses in Saudi Arabia:

• Social Protection: GOSI offers comprehensive coverage, including retirement pensions, disability benefits, and healthcare, ensuring employees and their families have financial support when needed.
• Economic Stability: By funding social insurance programs, GOSI helps maintain financial stability, reduces the impact of unemployment, and supports overall household consumption, with platforms like Paismo facilitating efficient tracking of contributions by employers.
• Enhanced Workforce Productivity: Access to healthcare, disability support, and retirement benefits promotes employee well-being and satisfaction, improving workforce efficiency and participation.

This approach ensures compliance while simplifying HR operations and maximizing the benefits of GOSI for both employees and employers.

Who Is Covered Under the GOSI System?

GOSI Saudi provides mandatory social insurance for Saudi employees working in registered companies and also extends coverage to Saudi nationals employed in GCC countries under the Unified Extension Agreement. Proper registration ensures smooth HR operations and supports accurate payroll management.

Eligibility Conditions

To qualify for GOSI coverage, an employee must:

• Be a Saudi national
• Work for an employer registered with GOSI
• Be under 60 years old at the time of enrollment (up to 65 if they have previous contributions)
• Retirees receiving a pension may choose to continue or stop contributing

What Salary Components Are Included in GOSI Calculations?

GOSI contributions in Saudi Arabia are based on the employee’s basic salary and certain fixed allowances, including:

• Housing allowance
• Regular commissions
• Fixed bonuses

For Saudi nationals, GOSI is calculated on the basic wage and housing allowance, split between the employee and employer. Expatriates’ GOSI is entirely paid by the employer. The maximum salary base for GOSI calculation is SAR 45,000, meaning any amount above this is omitted.

How Is GOSI Calculated?

To calculate contributions accurately, employers must apply the percentages to the eligible salary components:

• Saudi Employees (Annuities): Employee 9%, Employer 9%
• Occupational Hazards: Employer 2%
• Unemployment Insurance: Employee 0.75%, Employer 0.75%

Using the Right HR Software helps automate these calculations, reduce errors, and ensure compliance. Platforms such as Paismo can streamline GOSI computation, making payroll management simpler and more efficient for HR teams.

How Are GOSI Contribution Rates Applied for Saudi and Expat Employees?

In Saudi Arabia, GOSI contribution rates differ for Saudi nationals and expatriates:

• Saudi Employees: The total contribution is 18% of the basic wage, shared equally between the employer and employee, 9% each.
• Expatriates: The contribution is entirely paid by the employer.

For startups, integrating these rates into payroll workflows is essential. Structured and accurate registration helps ensure correct calculation and compliance with Saudi regulations, keeping HR operations smooth and efficient while avoiding potential penalties.

What Rules Must Employers Follow to Stay GOSI-Compliant?

Employers in Saudi Arabia are required to follow specific regulations to remain fully compliant with GOSI. These include:

• Registering all eligible employees through the official GOSI portal.
• Reporting accurate wages and submitting employee salary information on time.
• Calculating and contributing the correct GOSI amounts each month according to employee type.
• Ensuring contributions are paid by the 15th of the following month.
• Keeping detailed payroll and contribution records for audits and inspections.

What Penalties Can Employers Face for GOSI Non-Compliance?

Employers who fail to comply with GOSI regulations in Saudi Arabia can face several financial and administrative penalties, including:

• Fines for not registering employees within the required time frame.
• Penalties for delayed or missed contributions.
• Charges for providing incorrect or false salary information.
• Legal consequences for repeated or severe violations.
• Additional back payments if contributions were under-reported.
• Risks of audits or inspections that may lead to further administrative action.

To reduce these risks, using the best payroll software can help automate GOSI calculations, track employee contributions, and ensure timely compliance, keeping HR operations smooth and penalty-free.

Summary

GOSI in Saudi Arabia manages social insurance, ensuring employee protection and smooth HR operations. Employers must register, submit documents, enroll staff, and track contributions through the GOSI portal. Contributions cover pensions, disability, and healthcare, with Saudi employees sharing the costs and expatriates having their expenses fully covered by the employer. Non-compliance can lead to fines, legal penalties, and back payments, while platforms like Paismo help streamline payroll and contribution tracking.

FAQs

What is GOSI in KSA?

GOSI (General Organization for Social Insurance) in the Kingdom of Saudi Arabia (KSA) is a government agency responsible for managing social insurance, which provides employee protection, pensions, disability benefits, and healthcare, while ensuring compliance with labor regulations.

What is GOSI Certificate?

A GOSI certificate is an official document issued after registration and payment of contributions, confirming that an employer is compliant with GOSI regulations. It is valid for 30 days and must be updated on a regular basis.

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