Accountants Introduction to GOSI in Saudi Arabia

GOSI

Introduction

 

GOSI or The General Organization for Social Insurance is the amount payable by the employer on behalf of the employee to the National Authority. The fixed percentages of nationals and expats are mentioned below.

The amount paid effectively adds towards the retirement benefits of the National employees, and for expatriates it adds towards work related injuries fund which is limited to a certain amount.

Nationals	Expats
22% payable on Basic salary and	2% on basic salary and housing allowance
Housing allowances.	Other allowances are exempt, except commissions
Other allowances are exempt, except commissions
As per general practice and rules,	The employer pays complete amount payable
½ of the total GOSI payable is paid by	No amount is taken from the employee.
the employee and ½ by the employer.
Alternatively, the company can elect to
Pay the ½ GOSI of the employee.

There are fines and penalties payable for late payment of GOSI amounts, not removing a national from GOSI register of the employer after resignation, and also fines/penalties on differing salaries on contract and GOSI registry.

As anyone in KSA would know the rules are constantly changing, kindly write to me regarding any changes to the above, and also let me know how the above has helped you.

This is just the basic introduction to GOSI. Hence, I don’t accept any financial liability or otherwise as result of the above. This is just advice resulting from my personal and professional experiences.

Regards,

Kamran