Calculate GOSI for Saudi Arabia

GOSI calculation comprises of three components, Annuities, Saned, and Hazards. The Annuities and Saned components 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:

• You can override the amount of the reference salary 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.

• 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.