As a result of Covid-19, we learned how important social security is to an employee’s long-term employment and companies’ ability to hold onto their finest employees.

Social insurance in Saudi Arabia includes all aspects of social security, and the General Organization for Social Insurance (GOSI) of the Saudi government oversees the program. The GOSI collects employer contributions, monitors legitimate social security insurance programs, and pays benefits to recipients, including local and international employees or their families.

GOSI covers pensions such as retirement pensions, non-occupational disability pensions, death pensions, and early retirement, as well as occupational hazards, unemployment insurance, and annuities.

In this blog, we’ll focus on GOSI, GOSI Calculation in Saudi Arabia and the biggest facts about GOSI. So, let’s read on without any further ado!

What is GOSI?

What is GOSI_

The Government Organization for Social Insurance, or GOSI, was established in 1973. It is a financially and administratively independent agency that deals with social insurance in the monarchy. GOSI’s main office is in Riyadh. Thirteen directors, including insured individuals, representatives from government agencies, and employers, are running it. GOSI’s main objective is to increase social insurance by distributing it equally to contributors and their family members. 

What is GOSI Calculation in Saudi Arabia?

What is GOSI Calculation in Saudi Arabia_

GOSI is a government organization that provides services for a wide range of individuals, including workers, employers, retired employees, healthcare professionals, and more. According to Saudi Arabia’s Social Insurance Law, several services are available.

The GOSI Calculation in Saudi Arabia is based on an employee’s earnings and is divided into two categories: GOSI for Saudi citizens and GOSI for non-Saudi citizens (or Saudi expats).

The basic pay and the housing allowance are the sole components of an employee’s earnings that are used in the calculation.

Let’s examine the GOSI Calculation in Saudi Arabia techniques in more detail.

GOSI is determined by the following formula for Saudi nationals employed in the public or commercial sectors:

22% of the maximum monthly applicable earnings are covered by the contribution made on the person’s behalf.

The breakdown of the contribution is as follows:

  • 9% of the employee’s contribution goes towards an annuity (pension).
  • 1% of the employer’s contribution goes towards unemployment benefits.
  • The remaining 2% of the employer’s contribution goes towards occupational hazards.

The GOSI Calculation in Saudi Arabia non-citizens is as follows:

The employer contributes to unemployment benefits equal to 2% of the maximum monthly eligible earnings, which range from SAR400 to SAR45,000.

Employer’s Contribution

  • Contribution to Unemployment = 0.75%.
  • Contribution to Retirement = 9%.
  • Disability and Compensation Plans = 2%

Total Employer’s Contribution = 11.75%

Employee’s Contribution

  • Contribution to Unemployment = 1%.
  • Contribution to Retirement = 9%.

Total Employee’s Contribution = 9.75%

For Saudi nationals, the GOSI proportion equals 22% of gross pay (basic + housing).

Biggest facts about GOSI

Biggest facts about GOSI

The General Organization for Social Insurance was founded to assist contributors and their families in obtaining top-notch social insurance benefits. In fact, for more than 50 years, GOSI has been a premier government insurance provider in the KSA region. Here are 10 key facts concerning GOSI in Saudi Arabia:

 1. Social insurance is mandatory: In Saudi Arabia, social insurance is mandatory for all employees who work for a company with more than 10 employees. The employer is responsible for registering the employee with GOSI and making contributions on their behalf.

 2. Contributions are shared between employers and employees: The contributions towards social insurance are shared between the employer and the employee. The employer is responsible for paying 70% of the total contribution, while the employee is responsible for paying 30%.

 3. Coverage starts from the first day of employment: Once an employee is registered with GOSI, coverage starts from the first day of employment. This means that employees are eligible for social insurance benefits from the day they start working, regardless of how long they have been employed.

 4. Disability, death, and old age pensions: GOSI provides several social insurance benefits to eligible employees. These employee benefits include disability pensions, death pensions, and old age pensions. In the event of an employee’s disability, death, or retirement, the relevant benefits are provided to the employee or their family members. In the event of a permanent disability or death resulting from an employment injury, the contributor or beneficiaries will receive an amount equal to 84 months based on the average salary for the previous three months. However, this shouldn’t go over SR 330,000.

 5. Medical benefits: GOSI provides medical benefits to eligible employees in addition to pensions. In the KSA region, GOSI has contracts with several hospitals where those who have experienced an occupational hazard are provided thorough care until they have fully healed. These benefits include coverage for medical expenses, hospitalization, and other related costs.

 6. Daily allowances benefits: The person would be qualified for a daily allowance if an injury sustained while on the job rendered them temporarily incapacitated. This daily allowance may be up to 100% of the injured person’s daily wage for each day of incapacity. If the patient receives treatment at GOSI’s expense, a daily allowance of 75% of the injured person’s daily wage is provided for each day of disability. This compensation is only possible if the injured party is a patient or on sick leave.

 7. Maternity benefits: Female employees who take maternity leave are eligible for benefits from GOSI. These benefits may include coverage for medical expenses, hospitalization, and other related costs.

 8. Unemployment benefits: “Saned” is the name of the unemployment insurance program provided by GOSI. Unemployed people may elect to receive this compensation within 90 days of leaving their job. But individuals can only choose this advantage if – 

  • They belong to Saudi Arabia;
  • They have Social Insurance Law registration;
  • For uncontrollable causes, they were forced to leave their job.

Social insurance is offered to Saudi nationalists employed in the public and private sectors under this unemployment program. In addition to paying monthly compensation for the intermediate time between two jobs, GOSI also pays the employee a maximum of SAR 9000 for the first three months of employment. After this time, GOSI pays the individual a maximum of SAR 7500 for each consecutive month. A person may only receive this compensation, constantly or occasionally, for 12 months.

 9. Reporting and filing requirements: Employers regularly report the employee’s salary information to GOSI. This information is used to determine the employee’s contributions and to calculate their benefits.

 10. Appeal process: If an employee or employer disputes a decision made by GOSI, they may file an appeal. The appeal process is designed to provide an opportunity for individuals to have their cases reviewed and to have any incorrect decisions corrected.

 11. Partial permanent disability benefits:  If an employee suffers an injury while on the job that results in a partial disability of 50% to 90%, they are entitled to compensation equivalent to the proportion of their disability. The injured person will also receive comparable compensation if the medical board determines that they need help from others.

Wrapping up:

GOSI Calculation in Saudi Arabia serves the interests of both companies and employees. In reality, the benefits provided by the various GOSI services are appreciated by companies in the KSA region.

Compared to GCC nations and other regions of the world where it is recognized as workers’ compensation, the GOSI system in Saudi Arabia is exceptional. As mentioned above, the facts are very advantageous to all employees, especially those who work abroad.


Question 1: What is GOSI?

The Saudi government’s General Organization for Social Insurance (GOSI) oversees social insurance in the kingdom. A board of eleven directors from employers, insured parties, and government agencies oversees GOSI.

Question 2: Do claims for payments of social insurance entitlements have to be submitted by a certain date?

Unless there is an acceptable justification to GOSI, claims for travel, housing, and grants for the deceased’s family cannot be accepted after one year, and claims for any leftover benefits cannot be accepted after five years from the date the benefit entitlement arises.

Question 3: Is the employer obligated to compensate the insured individual who sustained an occupational injury or to compensate the victim’s surviving family members?

Unless the employer intentionally caused the injury due to an obvious mistake or non-compliance with rules and regulations regarding a healthy and safe workplace, GOSI is required to pay the insured person’s or family members’ legitimate benefits. However, the employer is not required to pay.

Question 4: What are the two branches of GOSI?

The GOSI has two branches:

  • The Annuity Branch – Pension Insurance Saudi Arabian Retirement Plan
  • Occupational Hazard Branch (OHB) – Insurance benefits employees who suffer accidents and injuries while carrying out their tasks.

Question 5: What are the facts about GOSI?

Here’s a list of facts about GOSI:

  • Medical care benefits
  • Total permanent disability benefits
  • Unemployment benefits
  • Daily allowance benefits

Question 6: What is GOSI Calculation in Saudi Arabia?

GOSI calculation in Saudi Arabia varies on the section of people. The GOSI calculation is based on the employee’s earnings and divided into two categories:

  • GOSI for Saudi nationals and; 
  • GOSI for Non-Saudi nationals 

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