The General Organization for Social Insurance (GOSI) has clarified the specifics of the Council of Ministers’ decree approving a new Social Insurance Law tailored exclusively for newly employed individuals. The decree stipulates that current contributors will remain under the existing Civil Pension and Social Insurance laws, with exceptions related to statutory retirement age and required contribution periods for pension eligibility as outlined in the decree.
GOSI further clarified that the New Social Insurance Law applies solely to new employees entering both the public (civil) and private sectors without prior contribution periods under the current Civil Pension or Social Insurance laws.
For current contributors, the provisions of the current laws will continue, except for those related to statutory retirement age and required contribution periods for pension eligibility before reaching statutory retirement age, applicable to contributors with less than 20 years of service or aged below 50 Hijri years as of the effective date of the amendments.
Additionally, GOSI specified that the statutory retirement age for affected individuals will range between 58 and 65 Gregorian years, with a gradual increase beginning with an addition of 4 months to the current retirement age, based on the contributor’s age at the effective date of the amendments.
Early retirement under the new law will require a contribution period ranging from 25 to 30 Gregorian years, with a gradual increase starting with an additional 12 months to the current required period, depending on the contributor’s contribution period at the effective date of the amendments.
Meanwhile, the current Civil Pension and Social Insurance laws will remain unchanged for contributors aged 50 Hijri years or older or with 20 or more years of contributions as of the effective date of the amendments.
GOSI announced that the new law, along with provisions related to statutory retirement age and required contribution periods for pension eligibility, will come into effect on 27/12/1445 H, corresponding to 03/07/2024 G. For more details, visit awareness.gosi.gov.sa.
