The New Rate Change in Saudi GOSI Contribution

The General Organization for Social Insurance (GOSI) amended the contribution rates in the unemployment insurance system. It was approved to reduce the contribution rates to be (1.5%) one and a half percent instead of (2%) two percent. The GOSI indicated that the rates of bearing the new contributions will be (0.75%) on the Employee and (0.75%) on the employer, instead of (1%) on the Employee and (1%) on the employer.

With this change, the total GOSI percentage for Saudi nationals is 21.5%.

Please find the below breakup,

Employer’s Contribution

Employee’s Contribution

There is no change in the mechanism of collecting the contribution and the decision to reduce the subscription rate does not affect the amount of compensation being paid to the beneficiaries of this program.

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.

To know more about our payroll process, click here.

To know more about our KSA 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.

 

Get Free Consultation

 

Did you find the blog informative?      Yes    No