GOSI Calculation and Benefits in Saudi Arabia

Human resources are one of the most eminent assets of a company. Through effective human resource consulting, companies tend to succeed in their goals with a more competitive edge. Many HR outsourcing companies provide worthwhile HR solutions which help many businesses prosper and flourish while keeping their budget in place.

In this blog, we will discuss one of such HR features, named GOSI which benefits both the employee and employer in Saudi Arabia. GOSI is an organization that collects contributions of insurance for the welfare of the employee and their families.

What is GOSI?

GOSI stands for Government Organization for Social Insurance, which came into being in the year 1973. It is a financially and administratively independent organization dealing with social insurance in the kingdom. The headquarters of GOSI is in Riyadh. It is led and administered by thirteen directors which include insured persons, officials from government departments and employers. The primary goal of GOSI is to improve social insurance allotting it fairly to the contributors and their kin. 

What is the contribution percentage in GOSI?

The contributions for GOSI are collected by both, employers and employees. The percentage of contribution for employers is 12% whereas for the employees is 10%. According to a quarterly report of GOSI in 2020, it was declared that 498,000, 48,000 and 8,000 employees from micro, small and medium establishments are registered with GOSI, respectively. 

What is the structure of GOSI in Saudi Arabia?

The headquarters of GOSI is in Riyadh however GOSI has 21 other offices at various locations in Saudi Arabia. Presided by a board of directors of 13 members, the GOSI comprises of:

  • Chairman – personnel from Ministry of Finance
  • Vice Chairman – GOSI Governor
  • Personnel from the Council of Economic and Development Affairs
  • Governor Public Pension Agency
  • Personnel from the Ministry of Health
  • Personnel from the Ministry of Human Resources and Social Development
  • Personnel from the Ministry of Finance
  • Three members of employers
  • Three highly competent contributors

How many methods are there for calculating GOSI?

GOSI is calculated on the basis of the basic salary and housing allowances of the employee. The calculation is irrespective of the sector being private or government. There are two methods of GOSI calculation:

  • Method of GOSI calculation for Saudi Nationals
  • Method of GOSI calculation for Expatriates

Let us discuss each one by one.

For Saudi Nationals

The contribution is collected on behalf of individual amounts by both the employee and employer to 22% of basic salary and housing allowances. The breakup of this 22% is as follows:

  • 9% is collected from the employee on account of annuity also known as pension.
  • 9% is collected from the employer on account of the annuity (pension).
  • 1% is collected by the employee on account of unemployment contribution.
  • 1% is collected by the employer on account of unemployment contribution.
  • 2% is collected by the employer on account of occupational hazards.

For Expatriates

The contribution for expatriates is collected by the employers only which is 2% of the applicable earnings i.e. basic salary and housing allowances. The range for the contribution lies from SAR 400 to SAR 45,000.

Read More: Procedures for Employing Expats in KSA

What are the benefits of GOSI contribution?

GOSI has been on top as a government insurance provider in Saudi Arabia for the past 50 years. There have been various ways through which employees and their families benefit from the contributions. Here are a few benefits listed for Saudi nationals and expatriates both:

Saudi Nationals

  • Medical and Health Benefits
  • Daily allowance due to temporary disability or injury
  • Monthly allowance due to permanent disability
  • Partial permanent disability
  • Unemployment Allowances 
  • Benefits after the death of a contributor
  • Voluntary contribution benefits

Expatriates

  • Occupational hazard benefits
  • Permanent disability benefits
  • Allowances for injury due to traffic accident 

What is a GOSI Certificate and how can you obtain it?

A GOSI certificate is a document containing contributor’s wages and tenure of contribution. The certificate can be obtained through the GOSI’s official e-Service portal following the steps below:

Step no. 1 – Log on to the official e-Service portal of GOSI

Step no. 2 – Enter details of the contributor’s account.

Step no. 3 – Click on ‘Issue of certificates’.

Step no. 4 – Select the type of certificate you need to obtain.

Step no. 5 – Download the certificate 

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