Mandatory GOSI Update: New Contribution Rates Effective July 2025

GOSI Update: New Social Insurance Contributions Now in Effect (July 2025)

We’re reaching out to highlight a mandatory update to GOSI Contributions in Saudi Arabia that took effect in July 2025, following changes to the Social Insurance Law issued last year. Starting July 1, 2025, GOSI will gradually increase contribution rates for both employees and employers by 0.5% annually until 2028.

Who is covered by the new law?

The law came into effect on July 3, 2024, and applies exclusively to new employees entering the workforce in both the public (civil) and private sectors who have no prior contribution periods under the Civil Pension Law or the Social Insurance Law before that date.

Contribution Rate Changes - Effective Immediately:
For those subject to the new system:

• As of July 2025, both employer and employee contribution rates for the annuities branch have increased from 9% to 9.5%.

• This rate will continue to increase by 0.5% each year until it reaches 11% by 2028.
  
   

Year	Contributor	فرع المعاشات (Annuity)	ساند 1.5%	الأخطار المهنية 2%	Total Percentage
2024	Employee	9%	0.75%	0	9.75%
	Company	9%	0.75%	2%	11.75%
Jul-2025	Employee	9.5%	0.75%	0	10.25%
	Company	9.5%	0.75%	2%	12.25%
Jul-2026	Employee	10.0%	0.75%	0	10.75%
	Company	10.0%	0.75%	2%	12.75%
Jul-2027	Employee	10.5%	0.75%	0	11.25%
	Company	10.5%	0.75%	2%	13.25%
Jul-2028	Employee	11.0%	0.75%	0	11.75%
	Company	11.0%	0.75%	2%	13.75%

For more information: https://awareness.gosi.gov.sa/journey3.html 

Application of Existing Contribution Rates:
For those who began contributing to the Civil Pension System or the Social Insurance System before July 3, 2024, the existing original contribution rates will remain in force. These contributors are not subject to the changes introduced by the New Social Insurance Law.

Important:
Organizations employing individuals who fall under the scope of the New Social Insurance Law must update their GOSI rules immediately to reflect these changes and ensure compliance.

You can do so by going to the employee profile and clicking on Add salary package.

Select the correct rule for your employee from the “GOSI rule” drop-down menu and click Create.

Please take the necessary steps to confirm your organization’s compliance.