General Organization for Social Insurance (GOSI)
The General Organization for Social Insurance (GOSI) in Saudi Arabia, oversees the administration of social insurance benefits and pension schemes for employees. Employers using Zoho Payroll must grasp GOSI to ensure compliance and provide employees in Saudi Arabia with essential benefits.
GOSI manages social insurances that safeguards employees' financial well-being, particularly during retirement and times of need. As an employer, here are key points to consider:
Mandatory Contributions
Both employers and employees are mandated to make monthly contributions to GOSI. These contributions are calculated based on the employee’s salary through Zoho Payroll, ensuring accuracy.
| Authority | Employees' Contribution | Employer’s Contribution | Can be renewed at the start of the fiscal year? | Applicable for Citizens of |
|---|---|---|---|---|
| General Organization for Social Insurance (GOSI) | 9.00% | 9.00% | Yes | Saudi Arabia |
Benefit Entitlements
GOSI provides a spectrum of benefits, including retirement pensions, disability benefits, and social security coverage. These benefits serve as a safety net for employees, offering financial support in various life situations.
Compliance and Reporting
Adherence to GOSI regulations is essential for employers. This involves accurate and timely reporting of contributions, maximum insurable earnings, and any changes in employment status.
Here’s how you can configure GOSI for your organisation.
Configuring GOSI in Zoho Payroll
Pre-requisite: Ensure that you have created or imported employees who are Saudi nationals.
- Click Settings in the left sidebar of Zoho Payroll.
- Select Social Security.
- Click Edit in the General Organization for Social Insurance (GOSI) card.
- Enter the Maximum Contributory Wage. This is the salary limit to which both employer and employee contribution rates apply.
- Choose the option to Postpone the updated GOSI contributions due to Salary revisions to the next calendar year if you wish to delay deductions resulting from salary revisions until the following calendar year.
- Click Save.
Pro-tip:
View Salary Components Used for GOSI Contributions
Understanding how the salary contributes to GOSI is vital. Click the View Salary Components Used for GOSI Contribution option to view the specific salary components is used to calculate the maximum contributory wage, providing transparency in the allocation of your salary towards GOSI contributions.