Changes to Contributory Salary for Employees over 50 Years of Age

Payroll now applies the age-50 contributory salary rules not only at the annual January update but also whenever the GOSI (contributory) salary is recalculated during the year.

When a Saudi citizen's contributory (GOSI) salary is recalculated during the year, the system applies the same age-50 rules that previously ran only at the January annual update. The recalculation uses the contributory salary basis valid for the period in which the recalculation is processed and applies special rules for the calendar year the employee turns 50 and the calendar year after.

• The age-50 contributory salary check runs in January for everyone for the coming year, and also runs whenever 'Recalculate GOSI Salary' is executed for an employee during the year.
• If no recalculation periods are configured for the year, the age-50 check is performed only in January.
• In the calendar year the employee reaches age 50, a recalculation during that year is treated like any year under 50: if the employee's actual salary changes at that recalculation, the new contributory salary is used without applying the 10% cap.
• In the calendar year following the 50th birthday, the contributory salary after a recalculation is set to the lowest of: the newly calculated contributory salary, the prior contributory salary plus 10%, or the prior contributory salary (when there has been no salary change).

Recalculations use the same selection criteria as January: a fixed amount from the calculation card, a user-defined formula (subject to citizenship rules), or the actual amount earned subject to GOSI balance for the recalculation period.

This change affects payroll administrators who manage contributory salary calculation for Saudi citizens in the Private Sector.

Steps to enable and configure

You don't need to do anything to enable this feature.