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Riyadh: The Kingdom of Saudi Araba (KSA) has approved a new Social Insurance Law that sets the retirement age to 65 years.
In a post on X, the General Organization for Social Insurance (GOSI) said that the new law was approved by the Saudi Council of Ministers, headed by Crown Prince Mohammad Bin Salman Al Saud.
GOSI clarified that the amended law applies exclusively to new employees in public and private sectors without prior contribution periods in current civil pension or social insurance laws.
It stated that civil retirement law and social insurance law will remain in effect for current subscribers, with exceptions for statutory retirement age and legal pension entitlement period for certain categories.
The amendments will apply to subscribers with contribution periods under 20 years and ages under 50 Hijri years on the date of their effect.
Furthermore, GOSI plans to gradually increase the statutory retirement age for individuals affected by amendments from 58 to 65 years Gregorian, starting with a four-month extension.
Early retirement contributions will increase from 25 to 30 years Gregorian, with a gradual increase starting with a 12-month extension, depending on the amendments’ effect date.
On the other hand, the current Civil Pension and Social Insurance laws will continue to be in effect without changes to contributors who are 50 Hijri years of age or older or have 20 or more years of contributions as of the date the amendments come into effect.
This post was last modified on July 4, 2024 4:28 pm