What is Social Insurance (GOSI)?
Social insurance in Saudi Arabia is administered by the General Organization for Social Insurance (GOSI), providing retirement, disability, occupational hazard, and unemployment (SANED) benefits funded by mandatory employer and employee contributions on monthly salaries.
How It Works
- Saudi employees: 9% employee + 9% employer + 2% occupational hazards = 20% total.
- Non-Saudi employees: 2% occupational hazards (employer-paid only).
- Salary cap: contributions calculated on the GOSI ceiling (SAR 45,000/month historically).
- Employers remit monthly through GOSI’s online portal by the 22nd of the following month.
Saudi Context
GOSI compliance is enforced strictly through the Wage Protection System (WPS) and the Saudization Nitaqat program, which together monitor both salary payment and contribution accuracy. Employers face penalties and category downgrades for late or under-reported contributions, with direct impact on visa quotas and government tender eligibility.
Example
A Saudi employer pays a Saudi employee SAR 12,000/month. Employer contribution = 12,000 × 11% = SAR 1,320, employee deduction = 12,000 × 9% = SAR 1,080. Total monthly GOSI = SAR 2,400, remitted by the 22nd of the following month.