The General Organization for Social Insurance, or GOSI, is a Saudi Arabian government agency that’s responsible for managing social insurance for employees in the country.
The contributions are used to cover benefits for employees in case they are no longer able to provide for themselves or their families at the same capacity.
This is a mandatory insurance program, which means that not paying the required contributions can result in significant fines and penalties for both employees and employers.
Generally, GOSI contributions tend to be deducted from employees’ salaries and paid on behalf of the employer.
Both employees and employers need to make contributions to the fund.
What are GOSI benefits?
The benefits employees will receive from GOSI will depend largely on the specific GOSI program the employee is enrolled in. The benefits support employees and their families in retirement, disability, work-related injuries, medical expenses, and death.
To get these benefits, employees must have made contributions to GOSI for a certain amount of time – usually one year. The number of benefits received will depend on factors like salary and duration of their contributions.
What are the required contributions to GOSI?
GOSI contributions are monthly. These required payments are calculated as a percentage of an employee’s salary, with employee and employer both responsible for a specific portion of the contribution. Exact percentage will depend on factors like salary and type of employment.
Companies outside Saudi Arabia and GOSI
Non-Saudi companies with operations in the country may face extra challenges regarding GOSI.
For one, GOSI compliance can be complicated to navigate and requires a high level of expertise and understanding. On top of that, these regulations change notoriously quickly, making it much harder to ensure that the relevant payments are complying with the necessary requirements. This can lead to errors in calculations and missed deadlines.
To get past these barriers, companies must have the right partnerships in place. A payment distribution platform with expertise in the Saudi Arabian regulatory ecosystem, for example, will be able to consistently track any changes and updates to GOSI, while automatically ensuring that payments are made accurately and on time.