Middle East: Penalties Introduced for Late Payment of Social Insurance Contributions
October 20, 2026
Effective October 2026, Saudi Arabia’s General Organization for Social Insurance (GOSI) has begun imposing penalties for late payment of monthly social insurance contributions for Saudi nationals employed in other Gulf Cooperation Council (GCC) countries. The penalty is 0.1% of the monthly contribution amount per day on any outstanding payment of social insurance monthly contributions not paid by the 15th day of the next month. The penalty was previously announced in 2025 and is now being implemented.
Other GCC social security authorities (in Kuwait and Bahrain) began implementing similar penalties last year. Other social security authorities in the GCC region are expected to begin imposing similar penalties in the future.
Employers in all GCC countries should ensure that social insurance contributions for their Saudi national employees are paid to GOSI within the deadlines. Late payment may result in additional financial costs for the employer, as penalties will accrue for each day that the required contribution remains outstanding.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.
