Contribution to GOSI for Saudi and Non-Saudi Employees

There are some requirements of General Organization for Social Insurance (GOSI) upon the payroll your company is processing for you. According to these requirements, every company has to deposit a certain sum of money to the GOSI being a contribution to health and Social Security. This contribution is calculated according to a formula which is explained in the below lines.

Contribution to GOSI: Calculations for GOSI are based on earning of an employee (Basic Salary + Housing Allowance) of a particular Organization. The contribution will be deposited by the employer towards a workers’ compensation and disability plan administered by GOSI, which is regulated in some detail in the Social Insurance Regulation, Royal Decree No. M/22 of 3rd Ramadan 1421 Hejra corresponding to 29th November 2000 Gregorian. We have explained in the below lines how the contribution is calculated.

Worker’s Compensation and Disability Plan (2% of Salary): The employer has to deposit a contribution of 2% of the salary of every employee towards this plan. It is mandatory for the employer and he has to deposit it from his own funds. He cannot deduct this money from the salary of the employee. Employee means both Saudi and Expatriate employees. All employees (Saudi + Expatriates) working in Saudi Arabia will be getting so many benefits just because of this contribution. We have explained these benefits in a separate article. “Benefits from GOSI”. If your employer is not paying your GOSI contribution, he is actually eating from your plate. GOSI takes very serious action against the employers who violate their terms.

Unemployment Insurance – GOSI has started taking a contribution from employer and employee for the unemployment insurance. 1% will be deducted from the salary of Saudi Employee and 1% will be contributed by the employer. In this way, in aggregate there will be total 22% of salary’s contribution to the GOSI from each Saudi. 10% is to be paid by the employee and 12% to be paid by the employer.

Retirement Scheme – Retirement scheme is also administered by GOSI but it covers only Saudi Nationals. Every employer has to deposit 18% of the salary of the Saudi employee to the retirement scheme of the GOSI. The employer is entitled to deduct 9% of this amount from the salary of the Saudi National but remaining 9% is borne by the employer. If an employer is not depositing this money on behalf of Saudi employee, Saudi employee can challenge him in the labor court and bring him to the court. We have observed the cases when employers deduct 9% from the salaries of the employees but don’t deposit it to the GOSI. In this way, you are deprived in two ways;

  • 9% of your salary is deducted and you are not getting it in cash.
  • 9+9=18% of your entitled amount is not paid to the GOSI hence you will not be able to get it at the time of retirement.

The salary in the GOSI database can be revised only once in a year and I think it is in the month of Muharram. I am not sure about the month. There is no reconciliation between the increase in salary during the year and the return submitted to the GOSI. You are insured with the GOSI according to the return submitted to them. Yes, contribution to the government would be less but you are also insured with the lesser amount

  • irfan khan

    MY HUSBAND MR. MOHAMMAD RAKIM (PASSPORT # L2904466) WAS WORKING IN LAKIFAH CONTRACTING(7001454094) AND DIED IN AN ACCIDENT WHILE WORKING.
    WE ARE INFORMED BY THE COMPANY THAT WE SHALL GET DEATH COMPENSATION FOR WORK RELATED ACCIDENT BY GOSI.

    PLEASE LET ME KNOW WHEN AND HOW SHALL I GET ALL THESE.

    YOU CAN CONTACT ME ON MY MOBILE # +919709915757 OR MAIL:-irffankhanji@gmail.com

    YOUR RESPONSE WILL BE HIGHLY APPRECIATED.

    THANKS

    RAUSHAN BEGAM

  • Joy Gamboa Tago

    Hi sir can i know if my husband get a gosi benefit?my husband accidentaly slip while he work.his face is cut by a sharp objects when he fell.he quilted his face at the hospital and the doctor said he cannot work until his not totaly healed the wound on his face.almost 1 month before he is totaly healed and fit to work.can i know if he can get a gosi for the accident that cause injury in his face?i hope you reply on my concern thank you very much.he is work at riyadh.thank you

  • Yes, he is entitled to get following benefits from GOSI
    http://life-in-saudiarabia.blogspot.com/2014/08/benefits-from-gosi-to-employees.html

  • Rizwan

    Can we able to add any saudi national to GOSI while they have engaged with other sponsor’s GOSI account ?

  • Abdallah Amr

    Hello. In 1988 my GOSI benefits were given to me in a lump sum amount of SAR 35,000 as the Saudi government decided to discontinue the participation of non Saudis in the program at that time.
    I am now a US citixen reaching retirement age and am applying for social security in the US. I am being asked if the amount of SAR 35,000 I received was my own contributions to GOSI or if it also included employer contributions.
    I would appreciate any assistance with this inquiry.

  • right now, expatriates don’t have to contribute anything from their salaries. employer’s have to pay 2% of their Basic salary + Housing Allowance to GOSI. I am not sure about the rules of that time

  • Usman Arif Muhammad Arif

    Hi steve!
    I want to ask can an employer get the cheque of Gosi cashed without beneficiary’s presence(Vicotomized or Injured Employee) from the bank or it is mandatory for the employee to be present at that time.

    Kindly reply in regard my employer have a Gosi Cheque with them but they are not giving me amount or not even helping me to cash it and bank is saying i need an authority letter and sajjal tijari(Company Registration) to get it cashed from the bank.

    What to do in case please guide me i will be sincerely thankful

  • The cheque is given from the GOSI to the employer, not directly to employee. You are eligible to get it from your employer. If he does not do so and you are sure that he has received the cheque, you can take him to the court.

  • Adnan Khan

    Dear steve,
    I want to ask you 1 questions please please answer me as soon as possible.
    I have bank loan from sabb bank and credit card from same bank dua to some personal issues I’m going to take transfer from my present company to another company the time of transfer can i face any kind of problems for my loan and credit cards.
    Thank and regards
    Adnan khan

  • Usman Arif Muhammad Arif

    Thanx a million bro stay always blessed

  • sahir

    My father died a natural death in jeddah while he was working for a multi national company for 17 years.
    Am i entitled for gosi ?

  • Parwez Ansari

    how do i know either i register with the gosi or not?

  • SUMIT RATHOD

    Basically I want to know if there is any revision of salary in the mid of year is it mandatory to revise the GOSI deduction based on the revised salary. If the answer is yes than as per which section of the law. (I tried my Level best to find out the answer however didn’t received any concrete response )

    Just to make more clear example one person’s basic salary + Housing is 6000 SAR in January and in march he gets an increment and new basic salary +Housing is 7500 SAR, so his calculation should be

    (6000*10%=600)

    OR

    (7500*10%=750)

  • The salary in the GOSI database can be revised only once in a year and I think it is in the month of Muharram. I am not sure about the month

  • SUMIT RATHOD

    Thanks a lot Steve. Really appreciate your prompt response. Just wanted to recheck one more thing. If salary is revised only once contribution to the government would be less right.. Further wanted to know if any reconciliations need to be perform in the year to adjust the differential payouts to government.?

  • There is no reconciliation. You are insured with the GOSI according to the return submitted to them. Yes, contribution to the government would be less but you are also insured with the lesser amount

  • Dr Hamid

    Hi Steve!
    I am an Indian doctor worked as consultant specialist in hospital in Saudi Arabia for3 yrs. During my 3 year service, hospital management was deducting from my salary for paying for Gosi. When I resigned the job and did my final exit in dec 2016 they didn’t refund the amount which was deducting from my salary during my services .Is there any way to get that amount back since I came to know that the gosi amount should not be deducted from employee salary. It is to be paid by employers fund on behalf of employee. Even they told in the beginning that at the time of exit they will give back collected amount. Please do reply and clarify my doubts and advice any way to get that amount for me.

  • Muhammad Jamshaid

    What is the % of Basic and Housing for registration in GOSI

    Can we use 80% as basic and 20% Housing

  • It should be as per your actual package. Housing can be even zero percent if your employer is not paying it to you.

  • Dr Hamid
  • Yosef Escanilla Luague

    Mr. Steve Good Day!
    My company until now did not give us a insurance card, so it means we are not insured to any insurance company here in d kingdom, i am already working here for more than 1 year.
    What action should i do since my company always making a promises that they are on process for our insurance?
    Thanks a lot!

  • Issutti Vp

    Dear

    can i get detailed calculation of GOSI

  • camp💖💖kisses

    hi i am now in PHILIPPINES i was forced to stop working at ksa because i am now permanently disable to do any work. i have been working with one employee as a medical techinician (laboratory ) for 10 yrs and 10 mos. they just just gave me 7 yrs computation for my end of service benefits. and even ask me to pay 5K SR FOR my plane ticket because i cant travel without oxygen at the plane. i just want to know if i am entitled for this GOSI too. i have been too weak to complain when i was there . I HOPE U can enlighten me re this matter. thank you so much.

  • What was the reason of your disability brother?

  • camp💖💖kisses

    It is me. Im sorry i tried to research i guess im noy entitled since i got chronic dissease not due to work. I will just have to request for my end of service benefits right computation.

error: Content is protected !!