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Riding the Wave of Reform
Last year, we introduced you to a new chapter in Saudi Arabia’s social insurance reform — a bold initiative by GOSI to unify pension systems and gradually raise retirement age and contribution rates. At the time, we were still shaping our response. But today, the solution is no longer on the horizon — it’s live.
This blog highlights what has changed since our first post what SAP has delivered, and what’s next on the compliance roadmap.
What Changed Since Our Last Blog?In our earlier blog, we introduced the law’s intent and outlined three employee groups based on age and GOSI contribution history. Back then, the solution was still in discussion.
Since then, several assumptions have been simplified:
No new fields are needed for first contribution tracking.No contribution proration is required between July 1–2 and July 3 — the effective date for the new SI group (SN) was adjusted to July 1st.A combination of popup messages and business rules now guides users in assigning the correct SI Group — without requiring external GOSI data.What Has SAP Delivered?1. Effective Date AdjustmentTo ensure calculation consistency, the effective date for the SN contribution percentage is now July 1st (2025–2028), avoiding monthly proration.
2. SI Group Assignment