What is GOSI?
Published
GOSI (General Organization for Social Insurance) is the Saudi body responsible for mandatory social insurance on workers in the Kingdom. Its contributions fund pension, disability and death benefits, occupational hazard cover, and Saned unemployment insurance for Saudi nationals.
The two-system rule since July 2024
With the new Social Insurance Law effective July 2024, two systems now run in parallel, and the split turns on when a Saudi employee was first registered with GOSI:
| Existing system (registered before 3 July 2024) | New system (registered after) | |
|---|---|---|
| Employer | 11.75% | 12.75% (from July 2026) |
| Employee | 9.75% | 10.75% (from July 2026) |
| Combined | 21.5% | 23.5% |
The new system rises 0.5% combined (0.25% each side) each July through 2028 under a published transitional schedule. The existing system remains at its current rate.
Rate composition (existing system)
For a Saudi:
- 9% pension on each side = 18%
- 2% occupational hazards borne by the employer alone
- 0.75% Saned (unemployment) on each side = 1.5%
For a non-Saudi worker:
- 2% occupational hazards, employer alone
- No pension, no unemployment - expatriates aren't entitled to either benefit
Contribution base and ceiling
Contributions are computed on basic salary + housing allowance - not total pay - with a monthly ceiling of SAR 45,000. Above the ceiling no contribution applies, which lowers the employer's cost on high salaries and caps the employee's eventual pension.
A worked example: a Saudi employee on the existing system
Basic 12,000 + housing 3,000 = SAR 15,000 GOSI base:
Employee's deducted share = 15,000 × 9.75% = 1,462.50Employer's share = 15,000 × 11.75% = 1,762.50Total remitted monthly = 3,225True monthly employee cost to the employer = salary + GOSI employer share + other allowances + end-of-service provision
That composition directly explains the "GOSI payable" line in Al-Waha's chart of accounts (2140).
Employer obligations
- Registration with GOSI via its portal at business start.
- Adding and removing employees immediately on hire and termination.
- Filing monthly wages via Mudad and paying contributions on time.
- Complying with WPS wage protection in parallel (its page).
- Updating wage data when salary changes - the GOSI base isn't static.
Frequently asked questions
A Saudi employee moved to me from another company - under which system with me?
The first GOSI registration date is decisive - not the date they joined you. Check their file before computing the rate.
Transport, meals, and travel-ticket allowances - do they enter the base?
The base is basic + housing. Other allowances generally don't - precise treatment can shift; check GOSI's current guide.
Late payment?
Late-payment penalties apply on unpaid contributions, and certain services (residency renewals, visa issuance) may be suspended - a critically important obligation both financially and operationally.
Relationship to the end-of-service benefit?
Independent - GOSI is monthly contributions to pension and other funds; the end-of-service benefit is an obligation from the employer directly to the employee, computed under the Labour Law. See the EOSB provision on the balance sheet page.