Saudi Arabia Payroll Outsourcing Alert
Effective from 1 January 2022, the General Organization for Social Insurance (GOSI) announced changes to employee and employer contribution rates for the unemployment insurance law (SANED) GOSI component by reducing the total SANED contribution from 2% to 1.5%, with 0.75% being payable by both employer and employee. All other elements of the current GOSI contributions will remain unchanged.
In addition to the above change, the following additional pending changes are being considered by GOSI:
- Contribution for mid-month starters and leavers – Based on the contemplated amendment, the GOSI contributions for mid-month starters and leaver will be prorated based on the actual number of days worked by the employees during a month.
- Employee registration and deregistration – In accordance with the pending amendment, employers will be required to register new hires and deregister leavers in the same month the employee starts or leaves and a 30-day grace period for completing employee GOSI registrations or de-registrations will no longer be available.
In accordance with the GOSI officials, the above pending amendments have not yet come into effect.
Mercans’ Saudi Arabia Payroll Outsourcing Solutions
While Mercans’ KSA Payroll Outsourcing alerts will allow you to stay on top the latest development in KSA’s payroll regulations, you should still get in touch with Mercans’ KSA payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in KSA to Mercans and our KSA payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the KSA regulations.
Download PDFMercans Saudi Arabia Alert GOSI Registration Contribution Regulation Amendments