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General Organization of Social Insurance (GOSI)

The General Organization of Social Insurance (GOSI) is a state agency in Saudi Arabia that has responsibility for social insurance. GOSI implements social insurance rules, collects contributions from employees and employers, and pays benefits to entitled insured persons and eligible family members. You use this functionality to record the required information for calculating GOSI contributions to be paid by an employee and employer.

Conditions

To be eligible to make GOSI contributions, receive social insurance benefits, or both, the following conditions must be met:

  • The employee must be on the payroll of an organization within Saudi Arabia.
  • The sponsorship of an employee by an employer must be effective.
  • The employee should hold an iqama under the sponsorship of a Saudi-based company.


Contribution Types

Contributions are made separately towards two types of insurance:

  • Annuity Branch (Retirement)
  • Occupational Hazards

For documentation reference : http://help.sap.com/saphelp_lochrsae605/helpdata/en/b5/eb4152dd563807e10000000a441470/content.htm?frameset=/en/81/db4152dd563807e10000000a441470/frameset.htm&current_toc=/en/bf/bc52514aa09560e10000000a44176d/plain.htm&node_id=44&show_children=false

Back End Settings

Before executing GOSI process make sure the back end setting or configuration settings:

Step # 1
Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Define Non Contribution Reason

Define Non Contribution Reasons

Use

In this Customizing activity, you list the reasons why the employee is not subject to GOSI.

You maintain the list of valid non-contribution reasons in the Maintenance of Social Insurance Non-Contribution Reasons (V_T7SA11) table. These exemption reasons are then available for selection in the Social Insurance (KSA) (3252) infotype.

If the Calculate SI Contribution checkbox is not selected for an employee in the Social Insurance (KSA) (3252) infotype, it is mandatory to record a non-contribution reason.

You can determine a default value of non-contribution reason to an employee in Customizing activity Determine GOSI Contribution Indicator and Non-Contribution Reason.

Example

The employees that visit Saudi Arabia on a temporary basis and do not hold a resident permit in Saudi Arabia are not subject to GOSI contribution.

GOSI_01.jpg

Step # 2

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Define GOSI Contribution Groupings

Define GOSI Contribution Groupings

Use

In this Customizing activity, you create groupings for GOSI contribution calculation. Then you assign the employees to the corresponding grouping in the Customizing activity Determine GOSI Default Grouping

.When you create a record for an employee in Social Insurance (3252) infotype, the default value appears automatically in the SI Grouping field, you can change the default value based on your requirement.

Since each employee grouping (based on employee’s nationality) has different contribution rate, payroll function SASI uses the grouping information stored in infotype 3252 to retrieve the contribution parameters for GOSI contribution calculation.

Standard settings

The standard employee grouping is basically a one-to-one mapping to nationality

Activities

Create new groupings if require

GOSI_02.jpg

Step # 3

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Define GOSI Contribution Parameters

Define GOSI Contribution  Parameters

Use

In this Customizing activity, you define the GOSI contribution parameters for each employee grouping, for example, the contribution percentage, the maximum and the minimum contribution base.

If the monthly GOSI applicable earning of an employee exceeds the maximum amount, the system then uses the maximum amount to calculate GOSI contributions for the employee. If the monthly GOSI applicable earning of an employee is less than the minimum amount, the system then uses the minimum amount to calculate GOSI contributions.

Payroll function SASI reads the table and performs calculation for GOSI contributions.

Requirements

You have defined the employee groupings for GOSI contribution in Customizing activity Define GOSI Contribution Groupings.

Example

The minimum and maximum monthly levels of contributory wage for Saudi employees are SAR 1,500 and SAR 45,000 respectively.

For non-Saudi employees, the minimum and maximum levels are SAR 400 and SAR 45,000 respectively.

GOSI_03.jpg

GOSI_04.jpg

Step # 4

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Maintain Retirement Ages for Social Insurance Contribution

Maintain Retirement Ages for Social Insurance Contribution

Use

In this Customizing activity, you use the return values of feature 24ERA to specify the statutory retirement ages for employees according to nationalities.

Requirements

The social insurance funds must be maintained in Payroll: Saudi Arabia -> Social Insurance -> Define GOSI Contribution Groupings.

GOSI_05.jpg

Step # 5

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Define GOSI Employer Number

Define GOSI Employer Number

Use

In this Customizing activity, you record the number that the employer registered in GOSI authority.

GOSI_06.jpg

Step # 6

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Define GOSI Offices

Define GOSI Offices

Use

In this Customizing activity, you define the codes, names, and addresses of the General Organization for Social Insurance (GOSI) offices where your employees are registered.

Activities

You enter the keys and names of the GOSI offices as required. To enter address data for a GOSI office, select the relevant entry and choose the Address icon.

GOSI_07.jpg

GOSI_08.jpg

Step # 7

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Determine GOSI Contribution Indicator and Non-Contribution Reasons

Determine GOSI Contribution Indicator and Non-Contribution Reasons

Use

In this Customizing activity, you determine the default values for the Calculate Social Insurance Contribution checkbox and the Non-Contribution Reason field when you create a record of Social Insurance Saudi Arabia (3532) infotype.

For more information, see GOSI Contribution Default (24GOS) feature.

GOSI_09.jpg

Step # 8

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Define GOSI Default Grouping

Determine GOSI Default Grouping

Use

In this Customizing activity, you determine the default grouping for an employee when you create a record for an employee in the Social Insurance (3252) Infotype.

The system uses the grouping information to retrieve the GOSI contribution parameters for the employee.

For more information, see KSA Social Insurance Contribution Grouping (24SIG) feature.

Requirements

You must have defined the contribution groupings in Customizing for Payroll Saudi Arabia under Social Insurance-> Define GOSI Contribution Groupings


GOSI_10.jpg

Step # 9

Menu Path: Payroll>Payroll : Saudi Arabia> Social Insurance> Determine Calendar for GOSI Age Calculation

Determine Calendar for GOSI Age Calculation

Use

In this Customizing activity, you specify a calendar, Gregorian or Islamic, that the system uses to calculate an employee’s age. The HJAGE : Compare Employee’s Age with Specified Number Hijri Calendar (HJAGE) payroll operation reads the specified calendar and calculates the age.

Note

The calendar for age calculation is independent from the calendar used for payroll calculation.

Activities

You can choose either of the following:

  • G: Gregorian Calendar
  • T: Hijri Tabular Calendar
  • A: Hijri Tabular Calendar with Date Format A
  • B: Hijri Tabular Calendar with Date Format B

You can run the Program I18N_MAINTAIN_TISLCAL (I18N_MAINTAIN_TISLCAL) report to define date format A and date format B based on the standard Hijri Tabular calendar.

GOSI_11.jpg

After you done and make sure all above mentioned back end settings in SPRO then you have to create Master data employee:

GOSI Employee Master Data

You have to maintained first below master data for employee:

Infotype 3252 Social Insurance for SA

For Saudi Employee:

GOSI_13.jpg

For Non-Saudi Employee

GOSI_12.jpg

Then Run the Regular Payroll system with help Saudi Arabia schema calculate GOSI contribution for saudi and non-saudi employee:

Good luck.!

Regards:

Bashir

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11 Comments

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  1. Mohamed Ibrahim Elsayed Ibrahim

    Great Job , thanks for your efforts and i hope you complete GOSI calculation :

    1- GOSI Contribution Calculation: Housing Base

    2- GOSI Contribution Calculation: Basic Monthly Salary

    3- GOSI Contribution Calculation: Employee Age

    (0) 
    1. Bashir Ahmad Post author

      Hi Mohamed,

      Thanks for your feedback, yes i can further write document of its remaining scenarios and calculations.

      Regards;

      Bashir Ahmad

      (0) 
    1. magdy ghazy

      Hi Bashir,

      I want ask you about that if we have in my company an employee and his age 61 years how i make the SAP System calculate GOSI for him ??

      Regards,

      Magdy

      (0) 
      1. Bashir Ahmad Post author

        Hi Magdy,

        For your information this is Saudi GOSI Law where SAP GOSI calculation formula must determine employee age limit, which is not recommended to change until law change, but still if you want any manipulation then see the table of constant storage V_T511K in country grouping 24.

        Regards;

        Bashir Ahmad

        (0) 
  2. Mohammad Rehan Raza

    Hello Bashir Saab,

    very informative post.

    i have issue in gosi Calculation,

    we posted January  salary, but from client some employees got the increment (Back dated) from Dec 2016, and as per new salary we need to deduct gosi salary, in retro new gosi salary in not taking, how we can solve it?

     

    Regards,

    Rehan

    (1) 
    1. Bashir Ahmad Post author

      Hi Rehan,

      As GOSI office policy and SAP standard behaviour for consideration of Base GOSI salary is only consider from every begginning of the year (01.01.2016 – 31.12.2016). furthermore in between year increment no GOSI base will changed for deduction.

       

      Regards;

      Bashir

      (0) 
  3. Haisam Iqbal

    Hi Bashir,

    Thanks for such an informative post. It was really helpful.

    Recently we made a change in employee’s basic salary and housing which also impacted the Employee GOSI contribution (WT /370), which I suppose it should not. Well, i tried to overwrite (WT /370) by using WT M390 in Infotype 0015. But it did not overwrite the WT /370.

    Will be grateful for your insight.

    Thanks.

     

    (0) 
  4. Reda Hamad

    HI Bishr ,
    i applied your steps then i run a payroll but i do not get the standard social insurance wage types at the payroll log RT.

    are there additional steps .

    thanks ,

    (0) 

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