What is GOSI?
The General Organization for Social Insurance (GOSI) is the government body responsible for providing a safety net for workers in Saudi Arabia. Established in 1969, it today covers millions of Saudi and expatriate employees alike.
Who does GOSI cover?
- Saudi nationals: Covered by SANED (unemployment insurance) + Occupational Hazard Insurance + Old Age, Disability and Death insurance.
- Expatriates: Covered by Occupational Hazard Insurance only (work injuries and occupational diseases).
How are contributions calculated?
| Category | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Saudi | 11.75% | 9.75% | 21.5% |
| Non-Saudi | 2% | — | 2% |
Base: Basic salary + Housing allowance only — other allowances are not included in the contribution base.
What does it actually protect you from?
1. Occupational Hazard Insurance
If you’re injured during work or on your way to work, GOSI covers medical expenses and compensation — regardless of your nationality.
2. SANED — Unemployment Insurance (Saudis only)
If you’re dismissed for reasons beyond your control, you receive 60% of your average salary for up to 12 months. Requirement: a minimum of 12 months of contributions.
3. Old Age, Disability and Death Insurance (Saudis only)
- Retirement: Pension entitlement at age 60 (men) or 55 (women) with at least 10 years of contributions.
- Full disability: Immediate pension regardless of age.
- Death: Pension transferred to eligible dependents.
Key employer obligations
- Immediate registration: Employee must be registered within 30 days of hiring.
- Monthly payment: Contributions are due before the end of the following month.
- Immediate updates: Any salary change must be reported to GOSI.
- Termination notice: Service end notification within 10 days of the actual date.
Common costly mistakes
- Wrong contribution base: Including or excluding allowances that don’t belong in the base.
- Late registration: Fines starting from SAR 500 and escalating.
- Not reporting injuries: Legal violation that may cause employees to lose their rights.
Bottom line: GOSI is not just a monthly deduction — it’s a comprehensive protection system. Understanding it protects you from fines and ensures your employees’ full rights.
Have a specific question about social insurance? Connect with me on LinkedIn.