Social Insurance Calculation for GCC Citizens

Social Insurance contributions are calculated and deducted from all employees who have a GCC nationality and are working in any of the GCC countries.

The Employee Social Insurance calculation card captures the following information:

• Whether it has been agreed that the country of citizenship will pay any difference in contribution amounts.
  Note: You need to consider the Currency Conversion Rate across the country of citizenship and country of employment for social insurance calculation for GCC citizens working in Oman. You need to set up conversion rates before processing social insurance for GCC citizens.

Special rules for Saudi citizens with age above 50 years

• In the calendar year if the Saudi citizen reaches age 50, then there's no change in the contributory salary even if

  the actual salary has changed.

• In the calendar year following the 50th birthday, the contributory salary will be the lowest value of the current year’s contributory salary or previous year’s contributory salary, plus 10% or the previous year’s contributory salary if there's no change in the salary.

  Note: If there's no change in salary after the salary has been set using the preceding method, the same contributory salary is used.

Balance and Balance Feed

The following table illustrates the balances used, and the expected element balance feeds:

Citizenship	Sector	Balance	Notes
Kuwait	Government	Kuwait Employer Government Sector Social Allowance Base Kuwait Employee Government Sector Contributory Salary Base
Kuwait	Private	Employer Private Sector Social Allowance Base Kuwait Employee Private Sector Contributory Salary Base
Bahrain	Government	Bahrain Employer Government Sector Social Allowance Base Bahrain Employee Government Sector Contributory Salary Base	A rule to limit social allowance to 150 BHD is applied. This is applicable if the contributory salary is derived from either of the contributory salary balances, or from the subject to social insurance balance.
Bahrain	Private	Bahrain Employer Private Sector Social Allowance Base Bahrain Employee Private Sector Contributory Salary Base	A rule to limit fixed allowances to 100% of basic salary is applied. This is applicable if Bahrain Allowance Base in Private Sector balance is greater than Basic Salary. Excess amount is reduced from subject to social insurance.
Saudi	Government	Saudi Employer Government Sector Social Allowance Base Saudi Employee Government Sector Contributory Salary Base
Saudi	Private	Saudi Employer Private Sector Social Allowance Base Saudi Employee Private Sector Contributory Salary Base
UAE	Government	UAE Employer Government Sector Social Allowance Base UAE Employee Government Sector Contributory Salary Base
UAE	Private	UAE Employer Private Sector Social Allowance Base UAE Employee Private Sector Contributory Salary Base
All GCC countries	Government/Private	Employer Contributory Salary	This balance is common to all GCC countries. The employer social insurance contributions will be calculated based on this amount.

Note: When creating the balance feeds for the contributory salary base or the social allowance base you need to ensure that the effective date reflects when you intend to use these balances in your social insurance calculation. This is applicable for both government and private sectors.