Brief on the General Organization for Social Insurance (GOSI)
The General Organization for Social Insurance (GOSI) is a Saudi Arabian government agency concerned with social insurance in the country. GOSI is supervised by a board of eleven directors from government departments, employers and insured persons.
The Social Insurance Law was issued under the Royal Decree No. M/22 dated 15/11/1969. The Annuities Branch was implemented on 01/01/1393H. and the Occupational Hazards Branch on 01/07/1402H. The Law was amended by the Royal Decree No. M/33 dated 29/11/2000. and implemented as of 01/04/2001.
The General Organization for Social Insurance (GOSI) was established to implement the provisions of the Social Insurance Law and follow-up the process of achieving the compulsory insurance coverage, collecting contributions from employers and paying benefits for the eligible contributors or their family members.
GOSI enjoys administrative and financial independence. fourteen-member Board of Directors, supervises GOSI. The members are Minister of Finance, Chairman; GOSI Governor, Vice-Chairman; Governor of the Public Pension Agency;Council of Economic and Development Affairs Representitve; four members representing Ministries of Human Resource and Social Development, Finance Health, and Economy and Planning; three members of highly qualified contributors; and three members of employers. GOSI exercises its activities through the Head Office and 21 field offices located in a number of regions and governorates in the Kingdom.
The Social Insurance Scheme is an aspect of social cooperation and solidarity provided by the society for citizens. The Scheme covers workers in private sector and a group of workers in public sector. It also provides the contributors and their families with a decent life after leaving work due to retirement, disability or death; medical care for contributors afflicted with work injuries or occupational diseases; and necessary compensation in the event of occupational disability or death.
1. Medical Treatment:
GOSI will cover all the treatment costs in the event of employment injury. All medical expenses will be covered, until the person recovers.
2. Daily Allowance:
If an employee suffers a temporary disability as a result of employment injury, they will receive daily allowances until they recover from the injury. The allowances will also be given during holidays and weekends. The person will be given 100% of their contributions from GOSI, but if they are still undergoing treatment, they will get an allowance of 75%.
3. Permanent Disability or Death:
If one suffers permanent disability or dies as a result of employment injury, the contributor or the beneficiaries will get an amount of 84 months of salary, which will be based the average salary for the last 3 months. However, this should not exceed SR 330,000/
GOSI Contribution Calculation
By law, the part of an employee’s GOSI-applicable earnings that come from the January or hiring month’s basic monthly salary (BMS) depends on the employee’s nationality and whether the employee works in the public or private sector. Saudi Arabia has the following types of social insurance contribution categories, each with unique contribution rates:
Category I: Saudi nationals, private and public sector
22% of the maximum monthly applicable earnings (9% each for the employee and employer for annuity (pension), 1% each for unemployment contribution and 2% for occupational hazard which the employer pays)
|Nationality||Annuity Branch Retirement: ER Share||Annuity Branch Retirement: EE Share||Unemployment Contribution ER Share||Unemployment Contribution EE Share||Occup. Haz.: ER Share||Total||Min. Base in SAR||Max. Base in SAR|
Category II: GCC nationals, excluding Saudi nationals
Between 17-22% in total depending on the nationality – always a 9% annuity contribution from the employer, 2% unemployment contribution from employer and the balance from the employee.
|Nationality||Annuity Branch Retirement: ER Share||Annuity Branch Retirement: EE Share||Occup. Haz.: ER Share||Total||Min. Contributory Wage||Max. Contributory Wage|
|Bahrain||Private Sector: 9%||Private Sector: 6%||2%||Private Sector: 17%||Not specified under law||Private Sector: BHD 4,000|
|Public Sector: 9%||Public Sector: 15%||Public Sector: 26%||Public Sector: Not specified under law|
|UAE||Private Sector: 9%||Private Sector: 11%||2%||Private Sector: 22%||Not specified under law||Not specified under law|
|Public Sector: Not specified under law|
|Oman||Private Sector: 9%||Private Sector: 7%||2%||Private Sector: 18%||Not specified under law||Private Sector: OMR 3,000|
|Public Sector: 9%||Public Sector: 13%||Public Sector: 25%||Public Sector: Not provided|
|Kuwait||Private Sector: 9%||Private Sector: 9.5%||2%||Private Sector: 20.5%||KWD 230||KWD 2,750|
|Public Sector: 9%||Public Sector: 9.5%||Public Sector: 20.5%|
|Qatar||Private Sector: 9%||Private Sector: 6%||2%||17%||Not specified under law||Not specified under law|
|Public Sector: 9%||Public Sector: 6%|
Category III: Expatriates (non-GCC nationals)
Just 2% unemployment contribution paid by the employer
|Nationality||Annuity Branch Retirement: ER Share||Annuity Branch Retirement: EE Share||Occup. Haz.: ER Share||Total||Max. Contributory Wage|
|Foreign employees (expatriates) other than GCC nationals||Not Applicable||Not Applicable||2%||2%||SAR 400|
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