The Government Organization for Social Insurance (GOSI) is a premium government institution in Saudi Arabia that deals with social insurance in the country. Headquartered in Riyadh, GOSI is a financially and administratively independent organization that is supervised by a board of thirteen directors. The board of directors consists of insured persons, employers as well as officials from government departments. Since its inception in 1973, GOSI has constantly worked towards improving social insurance benefits meted out to the contributors and their family members.
The primary focus of GOSI in Saudi Arabia is to collect contributions—12% from employers and 10% from employees—acquire an open data report released by GOSI for the second quarter of 2020 shows that about 498,000 employees from micro establishments, 48,000 employees from small establishments and 8,000 employees from medium establishments are registered with GOSI.
In this blog, we will walk you through the intricate details of the GOSI insurance, its benefits, and how it is impacting the employees working in the KSA (Kingdom of Saudi Arabia) region.
GOSI functions and exercises all its activities from its head office in Riyadh. It also has 21 other field offices spread across several locations in the KSA region. Presided over by a board of thirteen directors, the board comprises the Minister of Finance (Chairman), GOSI Governor (Vice-Chairman), a representative of the Council of Economic and Development Affairs, Governor of the Public Pension Agency, three representative members from the Ministries of Human Resource and Social Development, Finance and Health, three members of employers and three highly qualified contributors.
GOSI is a government establishment that offers services for a varied section of people, including employees, employers, retired personnel, medical providers, and more. These services are applicable under the Social Insurance Law of Saudi Arabia.
The part of the earning of an employee that the calculation is based on includes only the basic salary and the housing allowance.
Let’s delve deeper into the GOSI calculation methods.
For Saudi nationals, working in either the private or public sector, GOSI is calculated as mentioned below:
The employer pays 2% of the maximum monthly applicable earnings, the value of which is between SAR400 and SAR45,000, as part of the unemployment contribution.
The calculation of GOSI varies across the different regions of GCC. Here is a detailed idea of the GOSI calculation for GCC nationals.
The General Organization for Social Insurance was set up with the aim of helping contributors and their families acquire world-class social insurance benefits. In fact, GOSI has been a top-tier government insurance provider in the KSA region for almost five decades. A data report from Argaam released to showcase the statistics of GOSI stated that about 8.32 million private-sector employees were registered with the organization in Q2 of 2020. Here is a list of benefits that Saudi nationals receive upon registering with GOSI:
This unemployment scheme provides social protection to Saudi nationalists working in the government and private sector. Apart from offering a monthly compensation for the transitionary period between two jobs, GOSI also compensates the individual with a maximum amount of SAR 9000 for the first three months of employment. For every consecutive month after this period, GOSI compensates the individual with a maximum amount of SAR 7500. An individual can only avail this compensation, continuously or intermittently, only for a maximum period of 12 months.
The General Organization for Social Insurance ensures that the expatriates working in the KSA region are also offered benefits under the Social Insurance Laws. To get a vivid understanding of GOSI for expats in Saudi, take a look at the following section.
If the injured Saudi national earns a wage of SAR 10,000, the calculation for GOSI would be as follows:
Monthly benefit: 10,000 x 100% = SAR 10,000 per month
Assistance of Others benefit (if eligible): 10,000 x 50% = SAR 5,000 per month
Total benefit: 10,000 + 5,000 = SAR 15,000 per month
If the disability of the injured Saudi national is 70% from total disability and he/she earns SAR 10,000, the calculation for GOSI would be as follows:
Monthly benefit: 10,000 x 70% = SAR 7,000 per month
Assistance of Others benefit (if eligible): 7,000 x 50% = SAR 3,500 per month
Total benefit: 7,000 + 3,500 = SAR 10,500 per month
The GOSI Contribution Certificate is a document that can be obtained from GOSI’s e-service portal. This document includes the contributor’s wages and period of contribution. This information is subject to the establishment’s system.
How to get the GOSI certificate?
To obtain a GOSI certificate, please follow the below-mentioned steps:
Step 1: Log in to the e-service portal of GOSI
Step 2: Enter the contributor account
Step 3: Click on “Issue of certificates”
Step 4: Click on the type of certificate you want, i.e., “Contributor insurance terms and wages”
The e-service portal offered by the General Organization for Social Insurance is a one-stop solution platform. It offers a range of services, to help employees and employers access the portal without any hindrance. Some of the e-channels offered by GOSI are SMS, direct link service, online service, GOSI-phone and e-payment service. GOSI also launched an employment contract authentication portal in 2018.
GOSI insurance is not only for the benefit of the employees but also the employers. In fact, employers in the KSA region also enjoy the perks offered through the various GOSI services.
Keep following us for more interesting updates and information.