Social insurance is an obligatory system enforced by governments to protect workers (regular – irregular). The system is applied by the employer whereby they deduct a percentage of the employee’s salary each month and pay it to the social insurance as a protection to the Employment, whether regular or irregular, from the dangers of work.

Relevant Laws, Regulations, and Decisions
Social Insurance and Pensions Law No. 148 of 2019 and its amendments.
Prime Minister’s decree No. 2437 of 2021 regarding issuing the executive regulation for the Social Insurance Law and its amendments.
Law No. 12 of 2003 promulgating the Labor Law.
Resolution of the Minister of Manpower and Immigration No. 162 of 2019 regarding issuing financial and administrative regulations for the employment, care, and protection of irregular workers (contracting, agricultural, seasonal, and temporary Employment and the like).

What is the Contractor’s Social Insurance?
It is a sector regulated by the National Organization for Social Insurance “NOSI” Law no 148 of 2019 that imposes subscriptions on any construction contracts, whether governmental, or non-governmental, or private sector.

NOSI calculated the percentages from these contracts based on the types of works in each contract. These are percentages are stated in the executive regulation for the Social Insurance Law No. 2437 of 2021 and are imposed on all companies operating in the contracting sector based on uninsured (temporary) workers, and the contractor is obligated to open a social insurance file in the contracting social insurance office where the contract is executed and determine the subscription percentage of the work that shall be executed.