GOSI, or the General Organization for Social Insurance, is a major government entity in the Kingdom of Saudi Arabia (KSA) that implements the country’s Social Insurance Law

1. Social Contribution (GOSI) calculation in
KSA
GOSI, or the General Organization for Social Insurance, is a major
government entity in the Kingdom of Saudi Arabia (KSA) that implements the
country’s Social Insurance Law. They generally specialize in collecting
employer payments, obtaining legal social insurance coverage, and paying
benefits to insured individuals or their family members. GOSI is a financial
organization based in the capital of Riyadh that is governed by a board of
thirteen directors. The board of directors is comprised of insured individuals,
employers, and government authorities.
Since its foundation in 1973, GOSI has worked tirelessly to improve the social
insurance benefits provided to contributors and their dependents. GOSI
provides services to a wide range of individuals, including employees,
employers, retirees, medical professionals, and others. These services are
covered under Saudi Arabia’s Social Insurance Law. We’ve discussed GOSI
calculation, employer and employee contributions, GOSI base amount, and
more in this topic.
1. What is the percentage of GOSI applied to Saudi Nationals?
Total GOSI percentage for Saudi nationals is 22%. Please find the
below break up;
Employer’s Contribution
 Unemployment Contribution = 1%
 Retirement Contribution = 9%
 Compensation and Disability Plan = 2%
 Total Employer’s Contribution = 12%

2. Employee’s Contribution
 Unemployment Contribution = 1%
 Retirement Contribution = 9%
 Total Employee’s Contribution = 10%
2. What is the percentage of GOSI applied to expatriates?
The employer is responsible for paying a 2% GOSI contribution.
However, there is no GOSI fee to be paid by an expatriate employee in
Saudi Arabia.
3. What is the base amount for calculating GOSI?
The GOSI contribution is always calculated on the Basic salary +
Housing Allowance.
4. Is there any maximum limit for GOSI base amount?
Yes, the maximum base amount for calculating GOSI is SAR 45,000/- If
any employee’s basic plus housing allowance is more than SAR
45,000/-, then GOSI contribution is calculated only against SAR
45,000/-
5. Does a company get any invoice from GOSI with regard to the total
contribution due for the month?
Yes, companies can generate monthly invoices from the GOSI portal.
Break up for the total invoice amount is also available in the portal.
6. How is the GOSI contribution paid by the company?
A company can deduct the employee portion through payroll and pay
the total contribution i.e., both the employer and employee contribution

3. to GOSI Authority. Companies are using the SADAD platform through
their online banking portal to process GOSI payments.
7. What is the deadline for paying the GOSI contribution?
The deadline for completing the GOSI payment is the 15th of the
following month. I.e., the last date for paying the January contribution is
the 15th of February.
Payroll Service in KSA
The process of payroll is a little complicated and time-consuming; hence it is
always recommended to outsource your company’s payroll function.
Outsourcing payroll will ensure the assistance of a team of trained payroll
professionals and it frees up the time of the organization, helping them focus
on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll
data is highly sensitive, and one should opt for a provider that can ensure high
levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your
payroll complexities through customized strategies. We take care of our
clients’ entire payroll cycle that includes preparation of payroll reports,
processing salary payment with WPS compliance, accrual management
including Gratuity, pension funds, an online portal for accessing payslips, and
many more. Our leadership team spends the necessary hours in every
project, ensuring our clients get refined consulting services to take your
business forward.

4. Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information,
HLB HAMT will not accept any liability arising out of errors or omissions.
Please note that this blog is not all-inclusive. Our guidance is designed only to
give general information on the issues/topics covered. It is subjected to
change and not intended to be a comprehensive summary of all laws which
may be applicable to your situation, treat exhaustively the subjects covered,
provide legal advice, or render a legal opinion.
Social Contribution (GOSI) calculation in
KSA
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