GOSI eases burden on employers

The General Organization for Social Insurance (GOSI) is beneficial for and helpful to both workers and employers, according to experts in the insurance field.
They say insurance of expatriate workers through GOSI safeguards their rights and eases the burden of the employer in paying end-of-service benefits.
GOSI is compulsory for all Saudis and was previously optional for expatriates.
The new scheme allows expats to register for GOSI and private employers cannot refuse their requests.
Sulaiman Al-Quwaiz, governor of GOSI, told a local newspaper recently that the date on which a non-Saudi worker comes to Saudi Arabia, or the date which his service is transferred to another employer will be considered the date of his registration with the professional hazards division of GOSI. The records appear from the first day of the month in which the change took place.
Under the new scheme introduced by the Ministry of Labor, expatriate workers become beneficiaries of GOSI. “Insurance of expat workers in GOSI represents a strong guarantee for them if their employers face financial troubles and cannot pay their end-of-service benefits. Some companies face financial troubles when they pay end-of-service benefits to their expat workers, especially in the case of foreign employees earning high salaries exceeding SR 25,000 per month,” Ibrahim Yousef Al-Ramel, a former member in the Insurance Committee at Jeddah Chamber for Commerce and Industry (JCCI), told Arab News.
Abdullah Yasin, who worked as a human resource department manager at a private company, said that most companies hesitate to lay off their expat workers due to the fear of paying huge end of service benefits.