GOSI calculation comprises of three components, Annuities, Saned, and Hazards. The
Annuities and Saned componenets are applicable to Saudi citizens, and Hazards is applicable
to all citizens working in Saudi Arabia.
Contributions are calculated as percentages of a GOSI Reference Salary. The GOSI
Reference Salary components are elements like basic compensation, accommodation and
transport allowances. The legislation determines which elements are liable to social
insurance contributions, whereas the amounts and definitions depend on the employer’s
regulations.
Note: For a Saudi employee registered with Social Insurance, GOSI
annuities will be paid till the age of 65. If the employee re-joins work after the
age of 65, GOSI annuities won't be paid.
For private sector employees:
- The amount of the reference salary can be overriden at the person level.
- If this amount is not entered at the individual level, you can define a formula
used to calculate the reference salary at the legal employer level.
- If neither individual override, nor legal employer formula, are defined, the
reference salary uses the value of earnings elements that are subjected to GOSI.
These elements are identified through secondary classification and feed the
balance Subject to GOSI.
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The reference salary has a monthly minimum value and a monthly ceiling. This
means that if the monthly social insurance income is lower than the minimum
value, contributions are calculated on the minimum value. If the monthly
social security income exceeds the monthly ceiling, contributions are due
just on the part up to the ceiling. For Saudi Arabia, a minimum monthly
reference salary of 1500 SAR and monthly ceiling of 45000 SAR are
predefined.
For the Private Sector, both the employee and employer contribution for
Annuities is 9%, and for Saned the contribution is 0.75%. For employers
only, the contribution to Hazards is 2%.
Note: If the employee’s payroll relationship is terminated before the end of the
current month, no contribution is deducted. If the termination date is the last
day of the current month the full contribution is deducted.
GOSI Salary Recalculation
To simplify the management of the GOSI reference salary, use the delivered component
details Recalculate GOSI Salary. Set the check box to 'True' to enable the
recalculation of the GOSI Reference Salary.
Note: You can set an end date for the
component Recalculate GOSI Salary if you don't want the continuous recalculation
of the GOSI reference salary.
For example, if you set the Recalculate GOSI Salary check box to 'True' on 01 Feb
with no end date, the GOSI Reference Salary will be recalculated every month.
Alternatively, if you set the Recalculate GOSI Salary check box to 'True' on 01 Feb
with an end date of 28 Feb the application will only recalculate the GOSI Salary for
that month.
Note: The component details need to be date effective, so that any
previously end-dated component details aren't impacted when the change is
made.