New Social Insurance Law raises the retirement age

At a glance

• The new Social Insurance Law, approved by Saudi General Organisation for Social Insurance (GOSI), applies exclusively to new civil employees joining the public and private sectors, who do not have any prior contribution periods under the current Saudi Arabia Cabinet Decisions No. 939/1393 and No. 199/1421.
• The amended law states a gradual increase in retirement age, with no change in benefits for current GOSI subscribers.
• Exceptions apply to certain categories, including subscribers with contribution periods of less than 20 years and ages less than 50 Hijri years at the date of these amendments. 

GOSI has clarified that the new Social Insurance Law, approved by the Council of Ministers, applies exclusively to new civil employees joining the public and private sectors. These employees should not have any prior contribution periods under the current Saudi Arabia Cabinet Decision No. 939/1393 on the Approval of the Civil Retirement Law or Saudi Arabia Cabinet Decision No. 199/1421 on the Approval of the Social Insurance Law. 

The amended law states a gradual increase in retirement age while there will be no change in the benefits for the current subscribers of GOSI. GOSI has emphasised that the provisions of Saudi Arabia Cabinet Decision No. 939/1393 and Saudi Arabia Cabinet Decision No. 199/1421 will remain in effect for current subscribers.

However, there will be exceptions regarding the statutory retirement age and the legal pension entitlement period for certain categories. 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 organisation clarified. GOSI has stated that the statutory retirement age for individuals affected by the amendments will range between 58 and 65 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 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.