Month: September 2021
Social Contribution (GOSI) calculation in KSA
HLB KSA Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
GOSI, or the General Organization for Social Insurance, is a major government entity in the Kingdom of Saudi Arabia (KSA) that implements the country’s Social Insurance Law. They generally specialize in collecting employer payments, obtaining legal social insurance coverage, and paying benefits to insured individuals or their family members.GOSI is a financial organization based in the capital of Riyadh that is governed by a board of thirteen directors. The board of directors is comprised of insured individuals, employers, and government authorities.
Since its foundation in 1973, GOSI has worked tirelessly to improve the social insurance benefits provided to contributors and their dependents.GOSI provides services to a wide range of individuals, including employees, employers, retirees, medical professionals, and others. These services are covered under Saudi Arabia’s Social Insurance Law. We’ve discussed GOSI calculation, employer and employee contributions, GOSI base amount, and more in this topic.
What is the percentage of GOSI applied to Saudi Nationals?
Total GOSI percentage for Saudi nationals is 21.50%. Please find the below break up;
Employer’s Contribution
- Unemployment Contribution = 0.75%
- Retirement Contribution = 9%
- Compensation and Disability Plan = 2%
- Total Employer’s Contribution = 11.75%
Employee’s Contribution
- Unemployment Contribution = 0.75%
- Retirement Contribution = 9%
- Total Employee’s Contribution = 9.75%
What is the percentage of GOSI applied to expatriates?
The employer is responsible for paying a 2% GOSI contribution. However, there is no GOSI fee to be paid by an expatriate employee in Saudi Arabia.
What is the base amount for calculating GOSI?
The GOSI contribution is always calculated on the Basic salary + Housing Allowance.
Is there any maximum limit for GOSI base amount?
Yes, the maximum base amount for calculating GOSI is SAR 45,000/- If any employee’s basic plus housing allowance is more than SAR 45,000/-, then GOSI contribution is calculated only against SAR 45,000/-
Does a company get any invoice from GOSI with regard to the total contribution due for the month?
Yes, companies can generate monthly invoices from the GOSI portal. Break up for the total invoice amount is also available in the portal.
How is the GOSI contribution paid by the company?
A company can deduct the employee portion through payroll and pay the total contribution i.e., both the employer and employee contribution to GOSI Authority. Companies are using the SADAD platform through their online banking portal to process GOSI payments.
What is the deadline for paying the GOSI contribution?
The deadline for completing the GOSI payment is the 15th of the following month. I.e., the last date for paying the January contribution is the 15th of February.
Payroll Service in KSA
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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Role of Payroll outsourcing in improving Data security and Confidentiality in UAE
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Data Security is the practice of protecting digital information from unauthorized access, corruption or theft throughout its entire lifecycle. It involves deploying tools and technologies that enhance organizations visibility into where its critical data resides and how it is used.
Majority of the payroll outsourcing firms are obliged to comply with certain regulatory and international compliance laws that deal with data security. For this, they implement certain measures and procedures to safeguard the data; the prominent ones are;
- Enhanced security for workstations, servers and storage space
- Encryption protocols
- Specific security policies
- Confidentiality clauses to ensure best practices for data protection
- Acquiring certifications
Customers look for certified providers while outsourcing their payroll services and that is the reason why organizations with major ISO certifications is the first preference for companies while outsourcing. These certifications ensure security of data, quality of services and customer satisfaction. Let’s discuss about some of these certifications which will certify the best practice in data security, quality of service, risk management, etc.
ISO 9001:2015
The ISO 9001:2015 is the certification for quality management system of an organization which ensures the quality of services and that the entity is all for customer satisfaction. This certification is a salient factor to carry out businesses globally. ISO 9001: 2015 focuses on fulfilling the needs of the clients in the best possible way by providing high-quality products and services. Some of the major benefits of ISO 9001:2015 are;
- Consistent results
- Great problem-solving abilities
- Substantial return on investment (ROI)
An ISO 9001:2015 certified company will have the correct procedures in place to manage any problems and the standard also ensures that entities evolve and discover novel methods of addressing various types of issues.
The ISO 9001:2015 Certification is only given to companies that have efficient management systems; hence it goes without saying that all their services and products fulfill the highest level of international standards.
ISO 27001
ISO 27001 is the international standard for “Information Security Management System” (ISMS). The ISO 27001:2015 enables organizations to secure data and information of any kind, be it financial information intellectual property, employee details or information provided by third parties. ISO 27001 is the sole standard that can be independently certified to cover people, process and technology.
The objective of ISO 27001 is to safeguard three aspects of information:
- Confidentiality: only the authorized persons can access information.
- Integrity: only the authorized persons can edit/modify the information.
- Availability: authorized people must be able to access information whenever they require
ISAE 3402
ISAE 3402 certification issued by the International Auditing and Assurance Standard Board (IAASB) lets the firms to have their own control policies and procedures assessed and verified by an independent party. This helps in scopes for improvement in different operational segments.
ISAE 3402 protects shareholders and the general public from accounting errors and unlawful practices. The standard helps in the strengthening and improvement of risk management and ensures transparency of the control framework.
Well, it might be tough to ensure data confidentiality if your organization is handling payroll of your employees. As they have certain other core functions to focus on, payroll work might seem taxing and they may not be able to give the attention it requires. This is one of the major reasons why organizations prefer to outsource their payroll process.
HLB HAMT offers secure and trusted payroll services and is ranked as one of the leading payroll service providers in UAE. The company has been serving local and multi-national companies for years now. HLB HAMT is certified in ISO 9001:2015: Quality Management Systems, ISO 27001:2015: Information Security Management and ISAE 3402, Type II: Process Management.
Payroll Process
The process of payroll in UAE is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll in UAE will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward. HLB HAMT provides payroll in UAE, Bahrain, Qatar, Saudi Arabia, Kuwait, and Oman.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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UAE set to roll out Green Visas targeting Foreign Citizens
HLB HAMT News Team
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Foreign citizens make up a large portion of the UAE’s population and are vital to the country’s economy. The government of the UAE is implementing a number of strategies as part of a larger effort to recruit top personnel and increase international investment. The initiative to implement a new class of visas known as “Green Visas,” will allow expats to apply for work without the need for an employer’s sponsorship.
The move is intended to appeal to investors, entrepreneurs, students, and college graduates. Another advantage is that Green Visa holders can also use their permits to sponsor their parents and children till the latter reaches 25 years of age. In the case of cancellation, the new visa provides a grace period of 90 to 180 days, which is substantially greater than the existing 30-day term. Permits for business trips have also been extended from three to six months.
The Minister of State for Foreign Trade Thani Bin Ahmed Al Zeyoudi announced “the recent amendments in residency system would make the UAE distinguished with a system that is the first of its kind in the world. The UAE will be characterized by an integrated path featuring regular, green and golden residency visas.”
Another visa category that was revealed was the federal freelancers visa, which is for self-employed employees in specialised sectors such as artificial intelligence, blockchain, and digital currencies who are based in the UAE or abroad. In addition, the existing golden visa, which allows foreigners to live, work, and study in the UAE without the need for a national sponsor and with full ownership of their business for a ten-year period, will be extended to pioneers in business, science, engineering, health, and education.
As a result of the pandemic’s impact on the UAE’s tourist and hospitality sectors, the country is looking to lessen its dependency on oil. In an effort to stimulate the economy, the introduction of visas is in line with the UAE’s plans for the future, which is projected to see a surge in the number of entrepreneurs and innovative talents. By researching your destination and connecting with your peers, HLB HAMT gives the ideal platform for making the most of your business opportunities.
HLB HAMT, a prominent firm in the UAE, offers high-quality audit, advisory services, and business setup assistance. We guarantee to provide you with accurate and timely services due to our comprehensive knowledge of the emirates and years of experience in the industry.
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AML/CFT Fresh Guidance issued by UAE Central Bank
HLB HAMT News Team
Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The Central Bank of the UAE (CBUAE) has issued fresh anti-money laundering and counter-terrorist financing (AML/CFT) guidelines to Registered Hawala Providers (RHP) and licensed Financial Institutions (LFIs) that offer services to RHP. The proposed guidance will help RHPs and LFIs understand and effectively implement the statutory AML/CFT responsibilities set forth in Federal Decree-Law No. (20) of 2018 on AML/CFT and Cabinet Decision No. (10) of 2019. The Financial Action Task Force (FATF) rules and advice are also taken into account in this guidance.
Hawala is an informal type of money transfer in which no tangible money is exchanged. A money transfer without money movement is how it’s described. Hawala is an alternate remittance route that operates outside of regular banking institutions that is still utilized today. As a result, the UAE Central Bank allows lawful hawala activity, which is seen as an important part of the country’s ongoing efforts to increase financial inclusion and bring the unbanked into the regulated financial system.
RHP must completely adhere to all UAE rules for targeted financial sanctions and suspicious transaction reporting (STR). RHPs must also create and maintain a robust AML/CFT compliance programme to prevent the activity from being used to support money laundering or terrorist funding. A competent compliance officer, adequate customer and agent due diligence, transaction monitoring, and record keeping should all be incorporated. Moreover, RHP must establish a settlement account with a UAE-based bank and inform the CBUAE of the account’s details. CBUAE urges LFIs to accept RHP clients and recommends that they implement adequate controls to minimize any risk that may arise as a result of these transactions. LFIs must not engage customers who are unregistered hawala providers situated in the UAE, and they must disclose any STRs to the UAE’s Financial Intelligence Unit, report them to the CBUAE when they are discovered, and constantly monitor the connection.
Globally, as the regulatory framework changes and becomes more demanding, financial institutions in the Gulf region, especially, are finding it increasingly difficult to implement new regulations and build comprehensive compliance systems. Nonetheless, in order to combat money laundering and terrorist funding in the UAE, the government has implemented strict restrictions on unlawful hawala transactions.
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