GOSI | Meaning and Definition

GOSI also known as General Organization for Social Insurance looks after the implementation of social insurance schemes in Saudi Arabia. It is responsible for protecting the financial security and well-being of the residents and Saudi nationals. It was established in 1973 as a governmental organization that plays a crucial role in the social and economic landscape of Saudi Arabia.

This organization represents the commitment of the Kingdom to provide a wide range of social security services to the citizens. This thus helps in maintaining the balance between social welfare and economic development.

The main responsibilities of GOSI are to manage and look after the social insurance programs that address the healthcare, unemployment, and retirement of the kingdom’s citizens. It takes contributions from both employers and employees to fund the various insurance schemes and thus works on the principle of cooperation and mutual support.

What are the Key Functions of GOSI?

The key functions and responsibilities of GOSI include:

  • Provide Social Insurance Coverage: This platform provides insurance coverage to employees working in both the public and private sectors. This ensures that citizens have access to financial support during their important life events. This insurance coverage extends to include retirement, disability, and survivors’ benefits.
  • Manage Contributions: This organization is in charge of the collection and management of contributions from employers and employees. These contributions form the financial foundation of the social insurance programs, ensuring that there are sufficient funds to meet the current and future needs of the citizens.
  • Make Provision for Healthcare Services: One of the most important functions of GOSI is the provision of a healthcare program, which offers medical services and coverage to those who are insured. This thus ensures that the citizens get guaranteed access to high-quality healthcare without having to bear heavy financial costs.
  • Give Financial Aid during Unemployment: This platform provides financial aid to citizens who are presently unemployed to support them. This security thus helps individuals to sustain themselves during the unemployment phase and thus completely focus on looking for new possibilities. This aid during their transitional periods gives them a big financial support.
  • Provide Retirement Benefits: This platform aims to take care of the retirement plans of the citizens. It runs a retirement program that can help individuals retire with dignity and financial stability. As we know there are regular contributions, now with these funds employees establish a reserve during their working years which is then used to generate a consistent income stream after retirement.
  • Look after Disability and Survivor Benefits: this platform extends its insurance coverage to employees who are facing any disability due to work-related injuries and also to the families of employees who have passed away. While survivor benefits provide aid to the families of contributors who have passed away, disability benefits help employees who are unable to work because of a long-term or permanent disability.

What are the Challenges and Reforms for GOSI?

GOSI has played a very crucial role in building a strong social insurance program in Saudi Arabia. However, it has faced a lot of challenges. Some of the challenges faced by the platform such as concerns about the sustainability of the social insurance systems, equitable insurance coverage, and continuous shifts in the demographic.

GOSI has undergone various reforms to enhance its efficiency and effectiveness in response to these challenges. These reforms include improvements in the contributions and benefits systems, the incorporation of technology to streamline processes, and initiatives to expand coverage and outreach. The aim is to create a sustainable and adaptive social insurance system that meets the evolving needs of the population.
Further improvements in the system may include enhancement to the contribution and benefit systems, the incorporation of innovative technologies for improved service delivery, and a persistent dedication to safeguarding the welfare of Saudi Arabian employees and their families are possible future developments.

Get 20% off
HR & Payroll Software