GOSI Regulations and Contributions in Saudi Arabia

What is the General Organization for Social Insurance?

The General Organization for Social Insurance (GOSI) is a Saudi government entity under the Ministry of Human Resources and Social Development. The organization is responsible for implementing the provisions of the social insurance system and providing comprehensive insurance coverage for workers in both public and private sectors and their families, through managing subscriber contributions and providing various insurance benefits.

The Organization's Objectives:

• Providing social and economic protection for workers and their families
• Disbursing retirement pensions to subscribers upon reaching retirement age
• Providing compensation in cases of injury, disability, or death
• Managing subscriber fund investments to ensure system sustainability
• Developing electronic services to facilitate procedures for subscribers and employers

What are the Branches of the GOSI System?

The GOSI system in Saudi Arabia consists of three main branches, each covering a specific type of risk and protection:

1. Pensions Branch

This branch provides protection for the subscriber and their family upon retirement, non-occupational disability, or death. The branch includes disbursing monthly retirement pensions, non-occupational disability pensions, and survivor pensions in case of subscriber death. It also includes disbursing end-of-service gratuity for subscribers whose subscription period is not complete.

2. Occupational Hazards Branch (Work Injuries)

This branch covers accidents, injuries, and occupational diseases that a worker may be exposed to during or because of work. The branch includes covering complete medical treatment for the injury, disbursing temporary disability allowance during the treatment period, disbursing compensation for partial or total permanent disability, and disbursing pensions to survivors in case of worker death due to work injury.

3. Unemployment Branch (SANED System)

This branch aims to provide temporary protection for subscribers in case they lose their job for reasons beyond their control. SANED disburses monthly financial compensation to the unemployed for a specified period, while providing training programs and employment services to help them return to the job market.

What are GOSI Contribution Rates?

GOSI contribution rates differ according to employee nationality. Employers and employees share these contributions, with differences in rates and coverage between Saudis and non-Saudis.

Contribution Rates for Saudis:

• Pensions Branch: 18% of contribution-subject wage (9% paid by employer + 9% paid by employee)
• Occupational Hazards Branch: 2% of contribution-subject wage (fully borne by employer)
• Unemployment Branch (SANED): 1.5% of contribution-subject wage (0.75% paid by employer + 0.75% paid by employee)
• Total deducted from Saudi employee salary: 9.75%
• Total percentage: 21.5%

Important Note: Starting July 2025, a gradual increase is applied to the pensions branch contribution rate for new employees who have no previous subscription periods. The rate increases by 0.5% annually for both employer and employee, reaching 11% (instead of 9%) for each party by 2028.

Contribution Rates for Non-Saudis:

• Occupational Hazards Branch only: 2% of contribution-subject wage (fully borne by employer)
• No amount deducted from non-Saudi employee salary
• Subscription does not include: Pensions branch or SANED system
• Available coverage: Work injuries and occupational accidents only

How to Register with GOSI

Employers are responsible for registering employees in the GOSI system. Registration must be completed by the end of the month in which the employee joined work at the latest, through the electronic portal of the General Organization for Social Insurance.

Registration Steps for Saudi Employees:

1. Log in to the establishment account on the social insurance website
2. Click on "Subscriber" then select "Register Subscriber"
3. Select "Saudi" category from the subscriber list
4. Enter national ID number and date of birth, then click "Verify"
5. Fill in required personal data (educational qualification, specialization, contact information)
6. Enter salary data and subscription period
7. Attach employment contract and required documents
8. Submit the application electronically

Note: The employee may receive an SMS on their mobile phone containing a link to read and approve the contract to complete the registration process. These steps represent the general registration procedures, and some details may differ slightly if the website is updated, but the general procedure remains as outlined above.

Basic Requirements:

• Establishment registration with the Ministry of Human Resources and Social Development before registering with GOSI
• Existence of an employment contract between employer and employee
• Commitment to registration within the specified period to avoid penalties

How GOSI Contribution Deductions are Calculated

GOSI contributions are calculated based on the contribution-subject wage, which includes the basic salary plus housing allowance. The specified percentages for each branch (as mentioned previously) are applied to this wage to calculate the monthly contribution value. There is a maximum contribution-subject wage of 45,000 Saudi Riyals, meaning if the sum of basic salary and housing allowance exceeds this amount, contributions will be calculated based on 45,000 Riyals only. For a detailed explanation with practical examples and calculation steps, read our article: How to Calculate GOSI Deductions in KSA.

Consequences of Non-Compliance with GOSI Regulations

Failure to comply with GOSI regulations leads to serious legal and financial consequences for establishments and employers. It is important for employers to be aware of these consequences to avoid them and ensure protection of employee rights:

1. Financial Penalties

Penalties are imposed for delays in registration or monthly contribution payments, and these penalties may accumulate significantly with continued delay.

2. Suspension of Insurance Coverage

In case of non-compliance with payment for 6 months, insurance coverage and subscription periods for subscribers are suspended, depriving them of benefiting from it for retirement purposes and other benefits.

3. Suspension of Government Services

Some government services provided to the establishment may be suspended, such as license renewals and work visa issuance, until the situation with social insurance is resolved.

4. Legal Accountability

Employers may face legal accountability and regulatory penalties in cases of large or deliberate evasion of contribution payments.

5. Damage to Establishment Reputation

Non-compliance negatively affects the establishment's reputation and reduces employee and business partner confidence in it.

Frequently Asked Questions About GOSI in Saudi Arabia

1. Is registration with GOSI mandatory?

Yes, registration with GOSI is mandatory for all Saudi employees and GCC citizens working in both public and private sectors. For non-Saudi employees, they are only covered by the occupational hazards branch.

2. How can data be updated in GOSI?

Personal data such as mobile number, email, or address can be updated by logging into the subscriber account on the GOSI website or "Taminaty" app. It is necessary to update data periodically to ensure continuity of rights and ease of communication with the organization.

3. Can an employee subscribe voluntarily to GOSI?

Yes, Saudis who have left work or work in free professions can register for voluntary subscription to maintain continuity of their subscription periods, provided they are between 18 and 60 years old.

4. What is the duration of SANED compensation disbursement?

SANED compensation is disbursed to the unemployed for a maximum of 12 months within 24 months, provided required conditions are met such as not leaving work voluntarily and having a subscription period of at least 12 months.

5. What happens to subscriptions if an employee moves to another company?

Subscription periods are automatically transferred with the employee when moving to a new company, where all previous periods are counted within their unified insurance record at the organization.

6. How can subscription periods be checked with GOSI?

Subscription periods can be checked by logging into the subscriber account on the GOSI website or through the "Taminaty" app using unified national access data.

Conclusion

The GOSI system in the Kingdom of Saudi Arabia represents a fundamental pillar for protecting worker rights and providing them with a dignified life after retirement. The system includes three main branches providing comprehensive coverage for pensions, occupational hazards, and unemployment. Compliance with GOSI regulations and paying contributions on time guarantees employee rights and protects employers from legal and financial penalties. It is essential for employers to have complete knowledge of rates, registration procedures, and calculation mechanisms to ensure full compliance and maintain the establishment's reputation.

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