GOSI Registration, WPS & Mudad Compliance

WPS is the mechanism that verifies employers pay employees the agreed wage, on time, through traceable bank transfers. Employers file a wage file each period; the system compares it against contract and GOSI data. Mismatches or missed filings generate violations against the establishment.

Depending on severity and duration, the establishment can face restrictions on government transactions — new work visas, sponsorship transfers and renewals among them. Because the restriction is at establishment level, it affects your whole workforce, not just the employee the mismatch relates to.

Usually through unrecorded changes: a salary revision applied in payroll but never updated in GOSI, allowances treated inconsistently, or a leaver deregistered late. Each is small, and together they produce a reconciliation gap large enough to flag.

Yes. We work from whatever payroll output you produce. If you would rather hand over the whole function, our payroll outsourcing service covers processing and filing together.

There are four answers, and which applies depends on the employee rather than the employer. A Saudi national with contribution periods before 3 July 2024 costs the employer 11.75% with 9.75% deducted from the employee; a Saudi national with no contribution periods before that date is at 12.75% and 10.75% from 1 July 2026 to 30 June 2027, stepping up 0.5 percentage points each 1 July. A non-Saudi, non-GCC employee is 2% employer and nil employee. GCC nationals are on neither Saudi annuities track — their pension treatment follows their home state's law under the Unified Law, so there is no single Saudi percentage to quote — but the Saudi 2% occupational hazards line still applies to them.

The contributory wage is the basic wage plus housing allowance paid in cash, and commission or a percentage of sales or profit counts as basic wage — the inclusion most often missed. Transport and mobile allowances, overtime, annual bonuses and benefits in kind are out; where housing is provided in kind, GOSI values it at the equivalent of two months' basic salary. The published limits are a minimum contributory wage of SAR 1,500 for the annuities branch, SAR 400 for occupational hazards, and a maximum of SAR 45,000 for all. Those floors are published for the existing system; no separate floor has been published under the 2024 law, which points instead at the minimum wage set by the competent authority.

Wages become due on the first day of each Gregorian month and the file must reach Mudad within 30 days of that date, the window having been cut from 60 days with effect from 1 March 2025. A monthly file is processed instantly; on a weekly wage type the violations and the compliance percentage appear on the 5th of the following month. GOSI contributions run on a different clock — the first fifteen days of the month immediately following the month they relate to.

Mudad publishes the list: requesting an establishment or expansion visa quota, visa issuance, conditional temporary disbursement for government contracts, transfer of labour between contracts, and issuance of the Saudization certificate. MHRSD puts a clock on it — two months' delay stops all of its services except issuing and renewing work permits, and three months' delay stops those too and allows workers to transfer to another employer without their current establishment's consent. Note the sequence: the block bites on visas and quota before it bites on permits, which is why an establishment can drift for two months and notice nothing until it tries to recruit.

No official figure is published. Mudad's Arabic refers to 'the required percentage' without stating it, and Ministerial Resolution 112377 fines an establishment for missing 'the compliance percentage specified by the Ministry' without naming a number — the 90%, 85% and 80% figures in circulation have no current published basis. What is published are the certificate thresholds: a wage protection certificate needs a compliance rate of 70% or higher over the past 12 months, or 50% or higher for a newly established entity, and Qiwa states the certificate is valid for one month from issue. The percentage that applies to you is the one on your own indicators page in Mudad.

A delay fine of 2% of the contribution due for each month of delay, under both the 1421H and the 1445H Social Insurance Laws. GOSI's own published position is that delay fines stop accruing once they reach 100% of the contributions they relate to — that cap is GOSI's, not the law's, which sets no ceiling at all. Two discretions exist and neither can be planned around: a cooperative employer may be exempted from all delay fines for justifiable reasons where the delay is not more than ten days, and the Governor may exempt a cooperative employer to the extent of 50%.