Payroll & Compliance

GCC Social Insurance Compared: GOSI, GPSSA, GRSIA, PIFSS, SIO, PASI

A side-by-side comparison of employer and employee social insurance contribution rates across all six GCC countries.

Payroll & Compliance
4 min read
8 sections
Quick answer

Every GCC country has its own social insurance authority with different contribution rates for nationals and expatriates. Saudi Arabia uses GOSI, the UAE uses GPSSA, Qatar has GRSIA, Kuwait has PIFSS, Bahrain has SIO, and Oman has PASI. Expat rates are generally lower than national rates.

Why social insurance rates matter for employers

Social insurance contributions are a mandatory employer cost that directly affects the total cost of employment. Getting the rates wrong — applying the wrong tier, missing a cap, or using the wrong calculation basis — results in penalties and back-payments. For employers operating across multiple GCC countries, understanding the differences is essential for accurate budgeting.

Saudi Arabia — GOSI

GOSI (General Organisation for Social Insurance) applies a dual-tier system. For Saudi nationals, the employer contributes 11.75% and the employee contributes 9% of covered earnings. For expatriate employees, the employer contributes 2% for occupational hazard insurance only — the employee pays nothing.

GOSI contributions are subject to an annual ceiling. The calculation basis is basic salary plus housing allowance.

UAE — GPSSA

GPSSA (General Pension and Social Security Authority) applies to UAE and GCC nationals only. Under the 1999 law, employer contributes 12.5% and employee contributes 5%. Under the 2023 reform (Law 57), rates increased to 15% employer and 11% employee for new registrants.

Expatriate employees are not covered by GPSSA — they receive end-of-service gratuity instead. The UAE also introduced ILOE (unemployment insurance) at AED 5-10/month for all private sector employees.

Qatar — GRSIA

Qatar's General Retirement and Social Insurance Authority covers Qatari nationals only. There is no income tax and no social insurance obligation for expatriate employees. End-of-service gratuity (21 days per year of service under the 2024 amendment) applies to all employees regardless of nationality.

Kuwait — PIFSS

PIFSS (Public Institution for Social Security) applies to Kuwaiti nationals with tiered contribution bands and a cap of KWD 2,750 on pensionable earnings. Expatriate employees are not covered by PIFSS. Employers must still provide end-of-service indemnity for all workers.

Bahrain — SIO

SIO (Social Insurance Organisation) applies to both nationals and expatriates — making Bahrain unique in the GCC. For nationals, the employer contributes 12% and the employee contributes 7%. For expatriates, the employer contributes 3% and the employee contributes 1%. Bahrain also has a mandatory unemployment insurance contribution.

Oman — PASI

PASI (Public Authority for Social Insurance) covers Omani nationals at 13.5% employer and 8% employee. Expatriate employees are not covered. End-of-service benefit for expats is calculated at one month's basic salary per year of service.

Key differences at a glance

Bahrain is the only GCC country that charges social insurance for expats. Saudi Arabia has the highest expat employer cost (2% GOSI plus Saudisation levy). The UAE's recent ILOE introduction added a new universal cost. Qatar and Kuwait have the simplest expat structures — no social insurance, just end-of-service gratuity.

For employers operating across multiple GCC countries, these differences compound. A team of 20 employees spread across three Gulf countries can have vastly different employer cost profiles depending on the nationality mix and local rates. Our calculators model all of these automatically.

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