RIYADH — The Saudi General Organization for Social Insurance (GOSI) clarified that the new Social Insurance Law, approved by the Council of Ministers on Tuesday, and came into effect on Wednesday, is applicable exclusively to new civil employees, joining the public and private sectors, who do not have any prior contribution periods in the current Civil Pension Law or Social Insurance Law.
The amended law stipulates gradual increase in retirement age while there will be no change in the benefits for the current subscribers of GOSI.
GOSI emphasized that the provisions of the Civil Retirement Law and Social Insurance Law will remain in effect for current subscribers and there will be an exception in the provisions related to the statutory retirement age and the legal pension entitlement period for some categories, the Saudi Press Agency reported quoting the GOSI sources.
These categories include subscribers having contribution periods of less than 20 years and whose ages are less than 50 Hijri years on the date when these amendments take effect, the organization clarified.
GOSI stated that the statutory retirement age for individuals affected by the amendments will range between 58 and 65 Gregorian years. This will involve a gradual increase, starting with an addition of four months to the current statutory retirement age, based on the contributor’s age at the date when the amendments come into effect. While for early retirement, the required contribution period will range from 25 to 30 Gregorian years, with a gradual increase starting with an addition of 12 months to the current required contribution period, depending on the contribution period at the date the amendments come into effect.
The GOSI indicated that the current Civil Retirement Law and Social Insurance Law will continue to be in effect without change to the remaining subscribers who are 50 Hijri years of age or older or have subscription periods of 20 years or more on the effective date of these amendments. The organization revealed that the new law and the provisions related to the statutory retirement age and the required contribution periods for pension eligibility will take effect on July 3, 2024 and that more details can be had at awareness.gosi.gov.sa.
It is noteworthy that the amendments to the current law do not include current pensioners or beneficiaries of family members of the deceased pensioner, as they retain the same benefits without change. Regarding new entrants to the labor market, the new law allows them to easily move between jobs in the public and private sectors, and the GOSI contribution rates will be gradually increased over a period of four years at a rate of 0.5 percent for each year, starting from the second year.
According to informed sources, maternity compensation will contribute to enhancing the empowerment and employment of women in the labor market, and reduces the financial burdens on employers and entities, with the institution bearing the benefit for working women upon maturity.
Source: Zawya
