Introduction
For businesses operating in the Gulf Cooperation Council (GCC) countries, complying with local regulations regarding social insurance contributions is essential. Keka has implemented a feature that automates the calculation and recording of social insurance for employees in these regions.
Feature Overview
Social insurance contributions are mandatory for GCC nationals and vary by country. The rates are predefined by local laws and are based on the employee's basic salary and fixed allowances. Keka HR's system has been updated to automatically calculate these contributions to ensure compliance with GCC regulations.
Social Security benefits are provided to employees in GCC countries (UAE, Oman, Kuwait, Bahrain, Saudi Arabia, and Qatar) by their respective governments. Each of the GCC countries have their own policies and regulations regarding social security and employee benefits, the contribution rates and applicability for which are stated as shown below -
| Scheme | Employees’ Contribution | Employer’s Contribution | Applicability |
|---|---|---|---|
| General Pension And Social Security Authority (GPSSA) | 5.00% | 12.50% | UAE Citizens |
| General Organization for Social Insurance (GOSI) | 9.00% | 9.00% | Saudi Arabian Citizens |
| Social Insurance Organization (SIO) | 7.00% | 12.00% | Bahrain Citizens |
| Public Authority for Social Insurance (PASI) | 7.00% | 10.50% | Oman Citizens |
| Public Institution for Social Security (PIFSS) | 7.50% | 11.00% | Kuwait Citizens |
| General Retirement and Social Insurance Authority (GRSIA) | 7.00% | 14.00% | Qatar Citizens |
Step-by-Step Guide for Setting Up Social Insurance Contributions
1. First, navigate to the Payroll (1) section in your Keka HR dashboard and select click on Settings (2).
2. Select the Pay group for which you want to enable social insurance and click on the Gear icon in actions.
3. Under the Contributions (1) tab, you will see an option for Social Insurance (GOSI) by clicking on the three dots (2), you can enable or disable Social insurance by using the toggle switch (3).
Social Insurance in Salary Structure Configuration
- The social insurance contributions will be shown in the salary structure as can be seen in the screenshot below. The contribution wage is automatically configured depending on the legal entity's country of incorporation. However, you can change the contribution wage as required by your organization.
Social Insurance Options on Employee Finance section
1. Employee Preferences Page:
- To view the Social Insurance status, navigate to the Finances (1) tab on employee profile. Under the Preferences (2) section, locate Statutory Information (3) where you can find Social Insurance Information. This section displays your Social Insurance status and number, indicating whether contributions are enabled for the employee.
- Here, you can enable or disable social insurance for the particular employee by clicking on the edit icon within the Statutory Information card.
- Switch the toggle (1) to enable or disable social insurance contribution and you can enter other details like the employee social insurance number, then click on Save (2).
- Enabling/disabling social insurance at employee level can be managed in bulk using a financial import named "Import Financial Information" under Payroll >> Payroll Admin >> Operations.
- 2. Employee Salary Details
- In the Finances (1) tab, click on Salary (2) to view your compensation details. Within the salary breakdown, there's a specific line for Social Insurance Employer (3), showing the contribution amount made by your employer on your behalf.
3. Salary Breakup Documentation
- Social Insurance contributions will be listed under the 'Deductions' section, displaying both monthly and annual contribution amounts
Reflection of Contribution on Pay Slips
- The social insurance contributions will be itemized on employee pay slips, showing the amount contributed to social insurance.
This update is part of Keka's commitment to providing a comprehensive and compliant HR platform for businesses across the globe. For more information on this feature, please contact one of our product experts!