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Navigating GOSI: Everything You Need to Know

Laws & RegulationsNavigating GOSI: Everything You Need to Know

Are you curious about understanding GOSI better? Read this article to get insightful knowledge of how GOSI works, its benefits, and its contributions.

What is GOSI?

The General Organization for Social Insurance was founded in 1973. GOSI is a government agency in Saudi Arabia that provides social insurance services to citizens and expatriates. It also offers online services such as e-payment, online insurance, and SMS services, along with several benefits to employers.

Services Provided by GOSI

The General Organization for Social Insurance ensures that all workers have insurance coverage. It collects the amount from employers on behalf of the employees. GOSI uses this amount to fund the services it offers to those eligible for these benefits.  

These benefits include financial assistance during retirement, disability, or death. Moreover, it also provides financial support for medical bills if a worker receives any work-related injury or illness. If an employee cannot work due to a work-related injury, GOSI also provides them with financial aid.

GOSI Online    

GOSI introduced its online service in 2005, enabling companies to do business digitally. Large companies can also use the System-to-System channels for online transactions with GOSI. 

Furthermore, GOSI Online prioritizes data protection using advanced security methods. It ensures the security of the users’ data through several modern techniques, such as digital certificates and signatures.

How Do GOSI Contributions Work?

Contributions to GOSI are different for expatriates and Saudi nationals. Below is a breakdown of these payments.

For Saudi Nationals:

Paid by Employer:

Unemployment Contribution0.75%
Retirement Contribution9%
Compensation and Disability Plan2%

Paid by Employee:

Unemployment Contribution0.75%
Retirement Contribution9%
Compensation and Disability Plan

For Expats:

Expatriate employers are required to pay a 2% GOSI contribution. However, expatriate employees are not required to make direct contributions.

Calculations of Bases and Limits

The General Organization for Social Insurance calculates the contributions on the combined amount of basic salary and house allowance. However, the basic salary is set at SAR 45000. If an employee earns above SAR 45000, GOSI will still base their contributions on this limit. This cap ensures fair contributions according to everyone’s income and provides financial safety for workers and their families.

How are the contribution payments made?

At the end of each month, companies must deduct these contributions from their employees’ salaries during the payroll period. These amounts are then combined with the employer’s contributions and paid to GOSI. 

Moreover, the company can pay the total contribution amount through the SADAD application through the online banking system. Companies can generate invoices through the GOSI portal. They can also access detailed breakdowns of the payments made by both the employee and the employer. This provides transparency in all payment processes. 

However, it is crucial to remember that GOSI has set a deadline for paying these contributions. This deadline is usually on the 15th of every month, allowing GOSI to manage and allocate its services effectively.  

GOSI Benefits for the Expats

The General Organization for Social Insurance benefits expatriates completely funded by their employers. These benefits provide a safety blanket in case the expats encounter any work-related disability or injury. 

These benefits also include occupational hazard benefits. If an employee suffers from any injury while performing his work duties, GOSI will cover all his medical expenses and the wage he lost during his recovery period. 

Moreover, if a worker experiences a permanent disability due to his job, he will also be entitled to receive these benefits. 

Through these services, GOSI aims to protect the welfare of expatriate workers in KSA by offering them necessary financial assistance.