GOSI launches initiative to exempt employers from fines for payment delays or violations

11 March 2024 – On 2 March 2024, the General Organization for Social Insurance (GOSI) in the Kingdom of Saudi Arabia (KSA) announced an initiative stating that fines incurred by employers for late payments or other violations can be waived as part of a six-month grace period.

Details of the initiative

• The waiver applies only to late payment penalties and employer-related violations incurred before 3 March 2024.
• Any penalties incurred after 3 March 2024 date would not be covered by the initiative.
• The initiative is for a six-month grace period starting from 3 March 2024.
• To qualify for a full waiver, employers must settle all outstanding GOSI payments due through the employer account in the GOSI portal.

Benefits

• Improved employer compliance: Provides the opportunity for companies to become compliant with GOSI payments.
• Protection of insurance benefits: Ensuring compliance with GOSI regulations ensures employers remain compliant and provides employee coverage/benefits.
• Reduced financial burden: Companies can avoid paying accumulated fines on overdue payments without incurring fines.

Deloitte’s view

Deloitte welcomes GOSI's initiative, which offers a valuable opportunity for companies in KSA to address outstanding GOSI liabilities without incurring additional financial penalties. We encourage all employers to leverage this grace period and work towards achieving full compliance with GOSI regulations.

By taking advantage of this initiative, companies can gain financial relief, improve their compliance standing, and contribute to a more secure social security environment for their employees.

Deloitte is monitoring for any further updates on this matter.

Contacts

Our GES experts listed below would be happy to discuss the above matter in more detail or support you through a further discussion of your requirements.