The General Organization for Social Insurance (GOSI) was formed in 1973 in the Kingdom of Saudi Arabia with a view to implement the provisions of the Law of Social Insurance, promulgated under Royal Decree No M/2 of 1969. Its main function is to set and monitor the implementation of mandatory insurance provisions, receive employers’ contributions, and pay out benefits to contributors and their dependents. GOSI is administratively and financially autonomous with a board of directors comprising of eight members. This board has the Minister of Finance who is the Chairman of the board, GOSI Governor, and members of the Ministry of Human Resource and Social Development, finance, and Planning and economic ministries. There is also a board member in the Military Sector, an expert in Financial Services and Risks, and an expert in Mergers, Institutional Structure Design, and Governance.
Who is Eligible for GOSI?
GOSI requires participation by private and some categories of public sector employees. It is mandatory for all employers having five or more employees to affiliate with GOSI officially. Some key eligibility aspects include: Some key eligibility aspects include:
- Saudi nationals who work in the private sector
- Employees from other countries who are working in KSA private sector
- Civilians employed in military, security services, and national guard
- Ministers, civil servants and teachers such as those in the Ministry of Education.
- Specialized technical workers at government organizations
Some workers in the categories of professions that are exempted from the mandatory coverage may not qualify for GOSI. However, employers can decide to register such staff voluntarily in order to access these benefits.
GOSI Online Registration Process
In order to use the services provided by GOSI and obtain certificates, people must first create an account on the official website of the organization. Here are the steps to complete GOSI online registration in Saudi Arabia: Here are the steps to complete GOSI online registration in Saudi Arabia:
- Go to the GOSI Registration Portal: Log onto www.gosi.gov.sa to access the registration system.
- Select Beneficiary Type: Select either Contributor, Establishment, or Hospital as the appropriate one.
- Click Register: This will open the registration form to input the personal information.
- Fill Registration Form: Details such as Iqama number, contacts, occupation, etc must be filled in appropriately.
- Verify Details: A validation code will be sent through the short message service or email. Log in to it to check registration.
- Complete Registration: Enter all the information asked for in the application form, review all inputs, and then complete the registration process online.
GOSI Calculation Methods
GOSI has varied ways of calculation depending on whether the person is a Saudi Arabian or an expatriate.
Table: GOSI Calculation for Saudi Nationals
| Contributor | Contribution Percentage | Purpose |
|---|---|---|
| Employee | 9% | Pension (annuity) |
| Employer | 9% | Pension (annuity) |
| Employee | 1% | Unemployment insurance |
| Employer | 1% | Unemployment insurance |
| Employer | 2% | Occupational hazards coverage |
The total contributions are 22% of the employee’s basic salary along with the housing allowances. It offers cash investment, pension, and support during the unemployment period.
Table: GOSI Calculation for Expatriates
| Contributor | Contribution Percentage | Purpose |
|---|---|---|
| Employer | 2% | Social insurance coverage |
For expatriates, only the employers are supposed to pay 2% of the basic salary of the employee which ranges from 400 SAR – 45000 SAR towards GOSI. This will again guarantee the safety of the expatriate’s financial well-being in as much as the employer is involved.
Obtaining a GOSI Certificate
A GOSI certificate provides details of employment periods, wages received and social insurance status of an individual. Here are the steps to obtain one:
- Log into GOSI Online Account: Login using the registered user ID and password.
- Provide Contributor Details: Enter all the necessary identification numbers such as the Civil ID number.
- Select Certificate Type: Select “Contribution Records and Wages”.
- Download Certificate: The certificate will be provided in the form of a PDF and you will be able to view all the details of your contribution there.
- Save or Print Certificate: You may choose to store or print the certificate as per your requirements.
Benefits of GOSI Contribution
- Provides healthcare coverage, disability benefits, pensions for contributors and their families
- Ensures the well-being of employees and their loved ones across Saudi Arabia
Benefits for Saudi Nationals:
- Comprehensive medical treatment for work injuries and occupational diseases
- Daily allowances if injury causes temporary disability
- Lifetime pension for total permanent disabilities from work accidents
- Monthly compensation for up to 12 months if involuntarily laid off
- Retirement pension at age 60 or after minimum contribution period
- Pension for those who retire before 60 with a minimum contribution
- Financial support if permanently disabled meeting contribution criteria
- Benefits for families if contributor passes away
Benefits for Expatriates:
- Lump sum compensation up to 84 months’ salary for 100% permanent disability
- Compensation up to 60 months’ salary for 50-99% partial disability
- Compensation up to 84 months’ salary divided among families if injury causes death
- Lump sum calculated based on disability % and monthly benefit for <50% disability
- Compensation adjusted based on age for disabilities
- Allowances for injuries from traffic accidents
FAQs
Q1. Is GOSI registration mandatory?
A1: Yes, it is obligatory for establishments with 5+ staff and eligible employees in Saudi Arabia.
Q2. Who qualifies as a dependent under GOSI?
A2: Family dependents are the legal spouse and children below the age of 25 years.
Q3. What documents are required for GOSI registration?
A3: A copy of passport/ Iqama, civil ID such as employment contract, etc an official copy of commercial registration of the company and a tax card of the business among others.
Conclusion
In conclusion, GOSI is a central legal and social institution that supports Saudi Arabia’s vision of improving the social status of its people and making the country’s economy more efficient. Thus, it guarantees that citizens as well as residents of the country are financially secure during these moments of hardship as the authorized insurer. Therefore, through promoting transparency and ensuring that GOSI establishes effective modern online services, it effectively discharges the lucrative responsibility of ensuring adequate protection to the Kingdom’s extensive workforce is enjoyed at all times.
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