Saudi Arabia Payroll Outsourcing Alert

Social Insurance Process Changes Announced.

Effective from 1 February 2022, the General Organization for Social Insurance (GOSI) has announced the following amendments to the GOSI registration and contributions processes:

• Contributions for mid-month starters and leavers – Based on the announced amendments, GOSI contributions for mid-month starters and leaver will be prorated based on the actual number of days worked by the employees during the respective month.

• Employee registration and deregistration – In accordance with the new 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.
• Salary changes – effective from 1 February 2022, the annual GOSI salary updates will no longer be available, and all salary changes must be made through the GOSI portal by the end of the month that follows the effective date of the salary change.
• Joining and last working day for expatriate employees – the effective joining date for all expatriate employees will be the date of the employee’s arrival to Saudi Arabia or the date their residency permit is transferred to the employer. The last working day for the expatriate employees will be the date when the employee departs the country or when their residency permit is transferred to another employer.

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.