Saudi Arabia’s General Organization for Social Insurance (GOSI) has recently revealed that the new Social Insurance Law has raised the retirement age to 65. GOSI stated that the statutory retirement age for individuals affected by the amendments would range between 58 and 65 years.
The new Social Insurance Law outlines that this increase is gradual, starting with an addition of four months to the current statutory retirement age, based on the contributor’s age at the date the amendments come into effect.
As 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. This also depends on the contribution period at the date the amendments come into effect.
The new law also states that 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.
GOSI clarifies decree details
Saudi Arabia’s GOSI recently clarified the details of the council of ministers’ decree, which approved the New Social Insurance Law that applies exclusively to new employees.
The decree affirmed the continued application of Saudi Arabia’s existing civil pension and social insurance laws for current contributors. However, it outlined exceptions to provisions related to the statutory retirement age and the required contribution periods for pension eligibility for the affected groups as stipulated in the decree.
GOSI also clarified that the New Social Insurance Law will apply only to new employees joining the workforces in the public (civil) and private sectors who do not have any prior contribution periods in the current civil pension or social insurance laws.
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The provisions of the current Civil Pension and Social Insurance laws will continue to be effective for current contributors. However, it stated the exception of provisions related to the statutory retirement age and the required contribution periods for pension eligibility prior to reaching the statutory retirement age for:
- Contributors with less than 20 years of service.
- Those with ages below 50 Hijri years as of the date the amendments come into effect.
Saudi Arabia’s GOSI 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 27/12/1445 H, corresponding to 03/07/2024 G.
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