What is the GOSI Contract in Saudi Arabia?
It is logical to think that employees in Saudi Arabia enjoy an extensive list of outstanding advantages. However, you can even find one that stands out among all of them. Indeed, the sky is the limit of what you can do with a GOSI Contract in Saudi Arabia today.
You can use this article to navigate the aspects of GOSI Saudi Arabia. For instance, it includes the eligibility criteria and the financial features of a GOSI Contract. Hence, discover this excellent tool for workers in the Kingdom of Saudi Arabia by reviewing the following topics:
Understanding the GOSI Contract in Saudi Arabia
Several laws and regulations in Saudi Arabia dictate how to establish an employment relationship with an employer. More specifically, Saudi labor law states that you can do so by signing an employment contract with your payroll outsourcing firm owner. Nonetheless, how can you upgrade it adequately?
One excellent way to improve your employment status in Saudi Arabia is through a GOSI Contract. Indeed, it is a contract that follows the guidelines and allows benefits from the General Organization for Social Insurance (GOSI), which is the entity that provides social protection and insurance coverage in KSA.
Furthermore, it is worth mentioning that GOSI Saudi Arabia is available for all employees in the Kingdom. In other words, you can sign a GOSI Contract regardless of being an expat who used immigration services to join the Saudi workforce. Trust us, you will not regret it.
In summary, most employees in KSA will tell you that a GOSI Contract is among the best features you can have in Saudi Arabia. Above all, it relates to its incredible historical evolution in the country. Let us review this history in detail in our following subject.
Historical Evolution and Legislative Foundation of the GOSI Contract
By all odds, you may think that being able to perform a GOSI Contract check is a modern possibility. Nevertheless, the fact that GOSI is older than most relocation services companies in KSA may surprise you substantially. So, let us navigate through the historical evolution of a GOSI Contract.
The first foundational stone of GOSI Saudi Arabia is the Social Insurance Law. Indeed, it took its first steps in 1969 with Royal Decree No. M/22 and took its final revision in 2001 with The Royal Decree No. M/33. Consequently, local authorities created GOSI in 1973 to enforce this law.
More importantly, we should mention that Saudi authorities allow the General Organization for Social Insurance to be an independent entity. In other words, your friend in the HR Management firm will discover that GOSI enjoys financial and administrative independence.
In summary, tools like a GOSI Contract have more than 50 years of age in Saudi Arabia. Nevertheless, the organism regularly reviews its components and aspects to keep it updated. In this sense, let us assess them in detail in the following topic.
Components and Aspects of the GOSI Contract
The main conclusion we can build from our previous topic is that a GOSI Contract has a historical value for employees in Saudi Arabia, including the ones working remotely. Hence, it is time you discover its most essential components and aspects in detail.
In this sense, we should begin by revealing that GOSI Saudi Arabia works by receiving contributions to provide benefits if necessary. Furthermore, you will discover later that the calculation of these contributions will vary depending on whether you are an expat or a Saudi national.
On the other hand, remember that tasks like the GOSI register procedure are exclusive to workers of Saudi companies and organizations. Therefore, feel free to work with a Professional Employment Organization to find a new job in an excellent place such as Saudi Arabia.
Lastly, we cannot begin showing you the details of a GOSI Contract without saying that the labor market of Saudi Arabia is tremendously competitive. Therefore, prepare yourself in the best way possible to enjoy the advantages of these components and aspects of GOSI Saudi Arabia:
Eligibility Criteria and Coverage under the GOSI Contract
Logically, one of your first doubts as a UAE resident with a Saudi Visa is the eligibility criteria for a GOSI Contract. Assuredly, it is an exclusive benefit for Saudi workers. But how can you discover if you can become a protected employee by GOSI Saudi Arabia?
Above all, we must reveal that a GOSI Contract is available for Saudi nationals and expatriates in KSA. However, local citizens get a higher level of coverage than foreign employees. In other words, what do Saudi nationals get under a GOSI Contract above expatriates?
Saudi nationals with a GOSI Contract can enjoy benefits such as medical and health coverage, unemployment allowances, and monthly allowances due to permanent disability. On the contrary, expatriates can only get occupational hazard benefits and allowances for injury from a traffic accident.
In short, getting a GOSI Contract in Saudi Arabia requires only you to be an employee in a Saudi company, even if you earn a minimum wage. Nevertheless, is it a free benefit? Or must you contribute to enjoy the advantages of GOSI Saudi Arabia?
Contributions and Benefits: Understanding the Financial Aspects of the GOSI Contract
We must begin this subject by answering the question above for clarification. Indeed, even a member of the Saudi Ministry of Labor will tell you that you must pay contributions if you have a GOSI Contract. But how much must you pay to enjoy the coverage of GOSI Saudi Arabia?
As we stated earlier, the benefits you can enjoy with a GOSI Contract will vary if you are a Saudi national or an expat in KSA. Consequently, the contribution rates of GOSI Saudi Arabia for each case are also different. Our following topic will tell you everything you need to know about it.
On the other hand, you cannot depart from reviewing this article without understanding the benefits covered by the GOSI Contract. For instance, you will discover that it is an excellent tool for financing medical treatments. Therefore, we will leave you convinced to get one for you ASAP.
So, you finished reading the definitive guide of how Withholding Tax in Saudi Arabia works today. Now, it is time you discover the most essential aspects of a GOSI Contract in KSA. Let us begin with the contribution rates and calculation methods.
GOSI Contribution Rates and Calculation Methods
The contribution rates regarding a GOSI Contract are higher if you are a Saudi national. After all, they will involve 22% of your basic salary and housing allowances. Regarding this percentage, employers contribute 12%, and you will pay the other 10% as an employee.
More specifically, your Saudi Employer of Record company will contribute 9% of your earnings regarding annuity (pension), 1% regarding unemployment, and 2% regarding occupational hazards. On the other hand, you will contribute 9% regarding annuity and 1% regarding unemployment.
But what if you are not a Saudi national but a foreign citizen working in Saudi Arabia as a contractor? Indeed, your contribution to GOSI Saudi Arabia will decrease substantially if this is your case. Let us assess it before you learn how to check GOSI status online.
Expatriates working in Saudi Arabia with a GOSI Contract must not contribute as employees. Instead, their employers will contribute 2% of their basic salary to GOSI Saudi Arabia. It will range between SAR 400 and SAR 45,000 and only relates to unemployment benefits.
So, you now know how much you must pay after you perform your GOSI register procedure adequately. At this point, we must show you the types of benefits covered by your GOSI Contract.
Types of Benefits Covered by the GOSI Contract
Numerous people think you can feel protected by having a GOSI Contract in Saudi Arabia. By all odds, it does not mean you can use it to apply for a Saudi Family Visit Visa in 2023. So, what types of benefits can you enjoy from GOSI Saudi Arabia today?
The first benefit we will mention in this topic involves medical treatments. Indeed, your GOSI Contract will allow you to get medical assistance for an employment injury cost-free. After all, GOSI Saudi Arabia will cover 100% of your medical expenses without problems.
Moreover, Saudi employees with a GOSI Contract in relocation services firms can receive daily benefits until they resume their activities if they get temporarily disabled due to a work injury. It will also include the allowances related to weekends and public holidays during this period.
What if you go through a worst-case scenario? A GOSI Contract will give you a sum equal to 84 months of compensation if you become permanently disabled from a work injury. However, this payment cannot surpass SAR 330,000 if you are a Saudi national.
Lastly, it is worth mentioning that expatriates can also get the benefit we mentioned in the paragraph above from GOSI Saudi Arabia. Unfortunately, it is the only financial benefit they can get with a GOSI Contract nowadays.
Claiming and Disbursement of GOSI Benefits
After performing your GOSI register procedure and getting your GOSI Contract, you can enjoy the benefits of GOSI Saudi Arabia. Nonetheless, it does not reveal how you can claim or disburse your benefits in the case of a work injury. Let us show you how to do it.
By all odds, one logical method you can use is to attend GOSI Saudi locations and explain your case in person. However, similarly to a QIWA Login Online Application, you can also use GOSI e-services and perform the required procedures online. For instance, you can get electronic payments this way.
In this sense, one procedure you must study regarding GOSI Saudi Arabia is learning how to check GOSI status online. Above all, the electronic channels will ask you for the details of your contributor account. As a result, you can download documents like a GOSI Certificate.
So, your life as an employee in Saudi Arabia can look much brighter with a GOSI Contract under your arm. Fortunately, you can trust the people of EOR Middle East to help you get yours quickly and smoothly. Ergo, they will let you get the GOSI Saudi Arabia benefits in the palm of your hand.