Categories: HR Outsourcing Services

GOSI Calculation in Saudi Arabia (KSA)

The Government Organization for Social Insurance (GOSI), established in 1973, is an autonomous entity responsible for managing social insurance in the Kingdom of Saudi Arabia. Headquartered in Riyadh, GOSI operates under the leadership of thirteen directors, comprising insured individuals, government officials, and employers.

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GOSI’s primary mission is to enhance social insurance by ensuring equitable distribution to contributors and their families. This article details how GOSI benefits both employees and employers in Saudi Arabia through the services of top-tier HR outsourcing companies.

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 the 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 the employers
  • Three highly competent contributors

GOSI Calculation in KSA

GOSI calculation is based on the basic salary and housing allowances of the employee. The calculation is irrespective of the sector being private or government.

There are two methods to calculate the GOSI:

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

Let us discuss each one by one.

GOSI Calculation in KSA For Saudi Nationals

The contribution is collected on behalf of individual amounts by both the employee and employer to 21.5% of basic salary and housing allowances. The breakup of this 21.5% 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).
  • The employee collects 0.75% on account of unemployment contribution.
  • The employer collects 0.75% on account of unemployment contribution.
  • The employer collects 2% 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:

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 the 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 1: Log on to the official e-Service portal of GOSI

Step 2: Enter details of the contributor’s account.

Step 3: Click on “Issue of certificates”.

Step 4: Select the type of certificate you need to obtain.

Step 5: Download the certificate

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