The General Organization for Social Insurance, commonly known as GOSI, is a vital government entity in the Kingdom of Saudi Arabia (KSA) responsible for implementing the Social Insurance programme. The program aims to provide social security to both local and expatriate employees and their family members. GOSI collects contributions from employers, ensures legal social insurance coverage, and pays benefits to eligible beneficiaries. GOSI plays a vital role in the economic and social well-being of Saudi Arabia’s workforce.
GOSI offers a comprehensive range of benefits, including occupational hazards, unemployment insurance, and annuities such as retirement pensions, non-occupational disability pensions, death pensions, and early retirement. The programme provides protection to workers against unforeseen events that may impact their financial stability, such as loss of income due to disability, unemployment or retirement, or death of the breadwinner.
The calculation of GOSI contributions for Saudi nationals is done as a percentage of their basic salary and housing allowance. The total percentage of GOSI for Saudi nationals is 21.50%, with the employer and employee each contributing a specific percentage.
The Employer’s Contribution Comprises of:
- Unemployment Contribution: 0.75%
- Annuity (pension) Contribution: 9%
- Occupational Hazards: 2%
Total Employer’s Contribution: 11.75%
The Employee’s Contribution Comprises of:
- Unemployment Contribution: 0.75%
- Annuity (pension) Contribution: 9%
Total Employee’s Contribution: 9.75%
GOSI Calculation for Expatriates
On the other hand, the contribution for expatriates is 2%, which is paid entirely by the employer. GOSI contribution is calculated only on the Basic salary and Housing Allowance, and the maximum base amount for calculating GOSI is SAR 45,000/-. Therefore, if any employee’s basic salary and housing allowance exceed SAR 45,000/-, GOSI contribution is calculated only on SAR 45,000/-.
GOSI has become an essential part of the social welfare system in Saudi Arabia. It aims to provide financial protection and security to workers and their families in the event of unforeseen circumstances. The program also serves as a tool to promote social and economic development in the country, by ensuring the well-being of its workforce. Moreover, GOSI’s comprehensive benefits and efficient management have made it a benchmark for social insurance programs globally. Read about the IQAMA in Saudi Arabia.
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