What is GOSI Contributions?
GOSI contributions are mandatory social insurance payments to the General Organization for Social Insurance (GOSI) in Saudi Arabia. They fund pension benefits, disability protection, and occupational hazard insurance for Saudi employees. Employers contribute for all employees (Saudi and non-Saudi) under specified categories, while employees contribute on the Saudi-national portion only.
How It Works
- Register the employer and each employee with GOSI.
- Declare monthly salaries (capped at the GOSI contributory ceiling).
- Apply employer rate (currently 11.75% for Saudis: 9% pension + 2.75% hazards/Saned) and 2% for non-Saudis (occupational hazards only).
- Apply employee rate (9% pension + 0.75% Saned for Saudis only).
- Pay monthly through the GOSI portal before the 15th of the following month.
Saudi Context
GOSI is a non-deductible payroll cost that significantly affects Saudization economics. Saudization quotas under Nitaqat increase Saudi headcount and therefore GOSI burden, while Saudi employees benefit from pension accruals. Late payment triggers penalties and interest. Qoyod’s payroll module computes and tracks GOSI contributions automatically.
Example
A Saudi employee earns SAR 10,000 per month. GOSI base = SAR 10,000 (within the contributory ceiling). Employer pays 11.75% = SAR 1,175. Employee deduction = 9.75% = SAR 975. Total monthly GOSI on this employee = SAR 2,150, of which the employer funds SAR 1,175.