The General Organization for Social Insurance in the Kingdom of Saudi Arabia stressed the need for employers to register their employees with correct and accurate data, stressing that tampering with registered wages is a clear violation of the system that warrants punishment.
Penalty for wage manipulation and failure to register
Organization for Social Insurance (GOSI) clarified that failure of an employer to register their employees in the system, or registering them with an incorrect wage (whether less or more than their actual wage), will result in a fine of up to 10,000 Saudi Riyals . GOSI indicated that this fine is doubled for repeat offenses and is multiplied according to the number of employees involved in the violation, in order to guarantee the rights of subscribers and protect the social insurance system.
The importance of proper registration and its economic impact
This emphasis stems from the institution's commitment to safeguarding the future rights of its subscribers, as the registered wage directly impacts the calculation of retirement pensions and compensation amounts in cases of disability or unemployment (SANED). Registering with the actual wage is a fundamental pillar for ensuring social justice and reducing future labor disputes. It also contributes to enhancing transparency in the Saudi labor market, aligning with the Kingdom's Vision 2030 objectives for regulating contractual relationships.
Documents required for disbursing benefits to family members
In a related context, the authority specified a list of necessary documents that the subscriber's heirs (family members) must submit to be eligible for disbursement, which are as follows:
- Fill out the compensation procedures form available on the website.
- The subscriber's death certificate or an official certified document that specifies the date of death.
- A certified inheritance certificate showing the ages.
- A marriage certificate for the widow or widows, or any official document proving the marital relationship.
- Proof of the subscriber's support for the applicant for disbursement (excluding widows, sons, and daughters).
- A document proving that children or siblings who are over 21 years of age are enrolled in school (renewed annually until age 26 or graduation).
- Certified medical reports proving the inability to earn a living, to be presented to the competent medical committee.
- A document proving that the widow/father/grandfather has reached the age of sixty, or a medical report proving the inability to earn a living if the age is less.
- Bank account number (IBAN) for pension transfer.
- National identity card or family card for eligible heirs.
Optional subscription: Beneficiary categories
The social insurance system allows a number of Saudi categories to voluntarily subscribe to the pensions branch to secure their financial future. These categories include:
- Self-employed professionals who have obtained a license to practice.
- Self-employed craftsmen (such as blacksmiths and carpenters).
- Saudis working outside the Kingdom without being affiliated with an employer based inside the country.
- Saudis working in foreign international, political and military missions within the Kingdom (not subject to the obligation).
- Subscribers whose mandatory subscription has stopped and who wish to complete the term.
This system aims to expand the umbrella of insurance protection to include all working segments of society, thereby enhancing the social and economic stability of individuals and their families after retirement.
