Penalty for registering an employee with an incorrect wage in social security
The General Organization for Social Insurance in the Kingdom of Saudi Arabia stressed the need for employers to adhere to transparency and credibility when registering employee data, emphasizing that tampering with registered wages or failing to register employees is a clear violation of the system that warrants punishment.
Strict penalties to protect subscribers' rights
The General Organization for Social Insurance (GOSI) clarified that the system guarantees workers' rights by imposing strict oversight on establishments. In this context, GOSI stated that an employer's failure to register their employees in the system, or registering them with incorrect wages (whether by increasing or decreasing them to circumvent the system), constitutes a serious violation.
This violation incurs a fine of up to (10,000) ten thousand Saudi Riyals . The authority did not stop there, but indicated that this limit is doubled in case of repeated violations, and the fine is multiplied according to the number of violations and the number of workers involved, meaning that establishments could face hefty fines if they fail to comply.
The importance of accurate wage recording
These measures are part of the Kingdom's commitment to regulating the labor market and safeguarding employees' social security rights. Registering with actual wages guarantees subscribers a fair retirement pension commensurate with their actual income at the end of their service, and ensures they fully benefit from the unemployment insurance program (SANED) and occupational hazard compensation. Any manipulation of this data negatively impacts the financial future of the worker and their family.
Documents required for disbursing family member benefits
In a related context, the authority specified the necessary documents that the subscriber's heirs or 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 any official certified document that specifies the date of death.
- A certified document listing the heirs, clearly indicating their ages.
- The widow's or widower's marriage contract, or an official document proving the marital relationship existing at the time of death.
- Proof of dependency for the applicant for disbursement (except for widows, sons and daughters).
- A document proving that the children or siblings (over 21 years old) are enrolled in school, and it is renewed annually until the age of 26 or graduation.
- Approved medical reports proving the inability to earn a living for health cases to be presented to the medical committee.
- Documents proving that the father, grandfather, or widower has reached the age of sixty, or is unable to earn a living if he is younger than that.
- Bank account number (IBAN) for pension transfer.
- National identity card or family card for eligible heirs.
Optional Subscription System
On the other hand, the social insurance system offers the option of voluntary participation in the pensions branch for a number of Saudi categories not subject to the mandatory system, in order to secure their retirement future. These categories include:
- Self-employed professionals who have obtained practice licenses.
- Self-employed craftsmen.
- Saudis working outside the Kingdom without being affiliated with an employer inside it.
- Saudis working in foreign diplomatic or military missions within the Kingdom.
- Subscribers whose mandatory subscription has stopped and who wish to complete the term.
