What is GOSI?
The General Organization for Social Insurance (GOSI) — Arabic: المؤسسة العامة للتأمينات الاجتماعية — is Saudi Arabia's government body responsible for administering social insurance for workers in the private sector. Established under Royal Decree M/33 of 1421H, GOSI provides a safety net covering retirement pensions, disability, work injuries, and unemployment insurance.
GOSI is not optional. Every private-sector employer in Saudi Arabia is legally required to register with GOSI, enrol their employees, and remit contributions monthly. Failure to do so results in penalties, fines, and potential suspension of government services.
Understanding how GOSI works is critical whether you are a Saudi national planning for retirement, an HR manager running payroll, or an expatriate worker trying to understand your pay slip.
GOSI Contribution Rates at a Glance (2025)
GOSI operates two separate tracks: one for Saudi nationals (covering retirement and occupational hazards) and one for expatriates (covering occupational hazards only).
Total GOSI cost for an expatriate employee: 2% (employee) + 2% (employer) = 4% of contribution base.
Detailed Breakdown by Branch
GOSI contributions are allocated across different insurance branches. Each branch funds a specific type of benefit. Here is exactly where your money goes:
| Branch | Employee % | Employer % | Who it covers |
|---|---|---|---|
| Retirement & Annuity | 9% | 9% | Saudi nationals only |
| Occupational Hazard | 0% | 2% | Saudi nationals |
| Unemployment (SANED) | 0.75% | 0.75% | Saudi nationals only |
| Work Injury (Expats) | 2% | 2% | Expatriates only |
Notice that Saudi employees contribute 0.75% of their salary to SANED (unemployment insurance) and their employer contributes an equal amount. This funds the unemployment benefits that Saudi workers receive if they are laid off.
What Salary Is Used for GOSI Calculation?
This is one of the most commonly misunderstood aspects of GOSI. Not all salary components are included in the "contribution base." GOSI uses a specific definition:
All other allowances (transport, food, mobile, performance bonus, annual bonus) are excluded.
Example Calculation
Let us say Ahmed is a Saudi employee with the following monthly salary structure:
| Component | Monthly Amount (SAR) | Included in GOSI Base? |
|---|---|---|
| Basic Salary | 6,000 | ✅ Yes |
| Housing Allowance | 2,000 | ✅ Yes |
| Transport Allowance | 800 | ❌ No |
| Food Allowance | 500 | ❌ No |
| Performance Bonus | 1,000 | ❌ No |
| GOSI Base | 8,000 |
Ahmed's monthly GOSI deduction: 8,000 × 9.75% = SAR 780
Ahmed's employer pays: 8,000 × 11.75% = SAR 940
Total GOSI contribution for Ahmed: SAR 1,720 per month
Use our GOSI Calculator to instantly compute your own contribution based on your salary breakdown.
Maximum Contribution Salary Cap
GOSI applies a ceiling on the contributory salary. As of 2025, the maximum salary used for GOSI contribution purposes is SAR 45,000 per month. This means if your basic salary + housing allowance exceeds SAR 45,000, GOSI is still only calculated on SAR 45,000.
For example, if a senior executive has a basic salary of SAR 40,000 and housing allowance of SAR 15,000, the contribution base is capped at SAR 45,000 (not SAR 55,000).
Employee deduction at cap: 45,000 × 9.75% = SAR 4,387.50/month
Employer contribution at cap: 45,000 × 11.75% = SAR 5,287.50/month
GOSI for Expatriates — What You Need to Know
If you are a non-Saudi working in the Kingdom, your GOSI situation is different in several important ways:
- Only work injury coverage: Expatriates are enrolled only in the occupational hazard branch. You are NOT covered for retirement, disability pension, or SANED unemployment benefits.
- 2% + 2% rate: You pay 2% of your GOSI base, and your employer pays 2%. Total: 4%.
- No retirement accumulation: Unlike Saudi nationals who accumulate a pension, expatriates do not build any retirement entitlement under GOSI.
- End-of-service gratuity instead: Expatriates are entitled to end-of-service gratuity (EOS) under Article 84 of the Saudi Labour Law. Calculate yours with our EOS Calculator.
- What it covers: Your 4% GOSI contribution pays for medical treatment and compensation if you are injured or killed at work — a genuine and valuable benefit.
SANED — Saudi Unemployment Insurance
SANED (Saudi Unemployment Insurance — تأمين ضد التعطل عن العمل) is a branch of GOSI that provides temporary income replacement to Saudi nationals who lose their jobs involuntarily. Key facts:
- Funded by: 0.75% from employee + 0.75% from employer = 1.5% total
- Eligibility: Saudi nationals who are laid off (termination without cause). Not available if you resign voluntarily.
- Benefit amount: 60% of last salary for the first 3 months, 50% for months 4-6, 40% for months 7-9, 35% for months 10-12
- Maximum benefit: SAR 9,000/month
- Minimum contribution period: You must have contributed for at least 12 months before becoming eligible
- How to claim: Register with the Ministry of Human Resources (HRSD) within 60 days of losing your job
GOSI Benefits for Saudi Nationals
For Saudi nationals, GOSI provides a comprehensive set of long-term benefits:
1. Old Age Pension (Retirement)
Saudi employees who reach retirement age (60 years for men, 55 for women in most cases) and have contributed for at least 10 years receive a monthly pension. The pension amount is calculated based on years of service and the average of the last 5 years' contribution base salary.
2. Early Retirement
Saudi nationals can retire early after accumulating 25 or more years of contribution (30 years for some categories). The pension benefit is proportionally reduced compared to full retirement age.
3. Disability Pension
If a Saudi employee becomes permanently unable to work due to illness or non-work-related accident, they may receive a disability pension. The minimum benefit is 25% of the last contributory salary.
4. Survivor Benefits
If a GOSI-enrolled Saudi national passes away, eligible dependents (spouse and children) receive a survivor pension based on the deceased worker's contribution history.
5. Occupational Hazard Benefits
Available to both Saudi and expatriate employees, this covers work-related injuries and occupational diseases — including temporary disability compensation, permanent disability pension, and death compensation for the family.
How to Register and Access GOSI
Employers are responsible for GOSI registration and monthly contribution remittance. As an employee, here is how to stay on top of your GOSI account:
GOSI Online Portal
Visit gosi.gov.sa to access the GOSI digital portal. Employers can register establishments, add/remove employees, and pay monthly contributions online. Employees can view their contribution history and projected pension estimates.
GOSI Mobile App (Masaned)
Download the GOSI app to:
- Check your total contributions to date
- Verify your employer is actually paying your GOSI (not just deducting)
- View your projected retirement pension
- File work injury claims
- Submit SANED unemployment benefit requests
Absher Integration
GOSI is integrated with the Absher platform. Saudi nationals can view GOSI summaries directly within the Absher app under the "Social Insurance" section.
Employer Obligations and Penalties
Saudi Labour Law and GOSI regulations place strict requirements on employers:
- Registration within 10 days: New employees must be registered with GOSI within 10 days of joining.
- Monthly remittance deadline: Contributions must be paid by the 15th of the following month. Late payments incur a 2% monthly penalty.
- Accurate salary reporting: Employers must report the correct contribution base. Underreporting salary to reduce GOSI payments is a legal offence.
- Exit reporting: When an employee leaves, the employer must update GOSI within 30 days.
GOSI and End-of-Service Gratuity — Are They Related?
No — GOSI and end-of-service (EOS) gratuity are completely separate entitlements governed by different laws:
| GOSI | EOS Gratuity | |
|---|---|---|
| Law | GOSI Law (Royal Decree M/33) | Saudi Labour Law Art. 84 |
| Who gets it | Saudi nationals (pension), all (work injury) | All employees (Saudi & expat) |
| When paid | Monthly pension after retirement | Lump sum when employment ends |
| Funded by | Monthly contributions | Employer obligation |
| Calculated on | Contribution base (basic + housing) | Last basic salary |
When you leave your job in Saudi Arabia, you are entitled to both: any GOSI pension or refund according to GOSI rules, AND an EOS gratuity according to the Labour Law. Use our EOS Calculator and GOSI Calculator together to understand your full entitlement.