The General Organization for Social Insurance (GOSI) is a cornerstone of Saudi Arabia’s social welfare system. Designed to protect employees and their families, GOSI ensures financial security during significant life events such as retirement, disability, unemployment, and work-related injuries. For businesses operating in Saudi Arabia, understanding GOSI is not only essential for compliance but also for fostering a secure and supportive work environment for employees.
What is GOSI?
The General Organization for Social Insurance is a government entity responsible for implementing Saudi Arabia’s social insurance laws. GOSI collects contributions from employers and employees, which are used to fund various social insurance programs. These programs provide financial benefits to employees during times of need, ensuring economic stability and social welfare.
Who is Covered by GOSI?
GOSI covers Saudi nationals and expatriates working in the private and public sectors. While the scope of benefits varies for Saudi and non-Saudi employees, GOSI is mandatory for all eligible employees in the Kingdom.
Contribution Rates for GOSI
GOSI contributions are shared between the employee and the employer. For Saudi employees, the contribution rate is 21.5% of the employee’s monthly salary, divided as follows:
- 11.75% is paid by the Saudi employee
- 9.75% is paid by the employer
For non-Saudi employees, contributions typically cover work-related injury insurance, with the employer paying 2% of the employee’s monthly salary.
Key Benefits of GOSI
GOSI provides a wide range of benefits aimed at safeguarding employees’ financial and social security.
- Retirement Pension:
Saudi employees who meet the required age and service years can receive a monthly pension, ensuring financial support during retirement. - Unemployment Insurance (SANED):
SANED provides temporary financial assistance to Saudi employees who lose their jobs due to unforeseen circumstances, helping them transition to new employment. - Work Injury Benefits:
GOSI compensates employees for work-related injuries, covering medical expenses and providing disability or death compensation if needed. - Family Support:
In the event of an employee’s death, GOSI ensures financial support to the family through pension payments or lump-sum compensation. - Maternity and Sickness Benefits:
For eligible employees, GOSI provides compensation for maternity leave and illnesses, ensuring income continuity during critical periods.
Employer Responsibilities Under GOSI
Employers in Saudi Arabia play a crucial role in ensuring compliance with GOSI regulations. Their responsibilities include:
- Registering their employees with GOSI upon hiring.
- Accurately calculating monthly contributions based on employee salaries.
- Submitting contributions on time to avoid penalties.
- Keeping records of employee information and salary details for audits.
Failure to comply with GOSI regulations can result in significant fines and loss of employee trust.
GOSI and Vision 2030
Saudi Arabia’s Vision 2030 initiative emphasizes creating a thriving economy and a secure social system. GOSI plays a pivotal role in achieving this vision by fostering a supportive environment for employees and encouraging businesses to prioritize their workforce’s welfare.
How Arab Dreams Can Assist You with GOSI
Navigating the complexities of GOSI can be challenging for businesses. At Arab Dreams, we offer comprehensive support to help you manage all GOSI-related processes with ease. From employee registration to monthly contributions and compliance audits, our team ensures your business remains fully compliant while focusing on its core activities.
Contact Arab Dreams today to streamline your GOSI compliance and support your workforce effectively.
