KSA Approves New Social Insurance Law for New Employees

The General Organization for Social Insurance (GOSI) has provided details on the Council of Ministers' decree that introduces a New Social Insurance Law applicable exclusively to new employees. This new law affects those joining the public and private sectors without prior contribution periods under the existing Civil Pension or Social Insurance laws.

For current contributors, the existing Civil Pension and Social Insurance laws will remain in effect, except for changes to the statutory retirement age and required contribution periods for pension eligibility. These amendments will impact contributors with less than 20 years of service and those under 50 Hijri years as of the effective date.

The statutory retirement age for affected individuals will gradually increase to between 58 and 65 years, beginning with a four-month extension based on the contributor's age at the time of the amendment. Early retirement will require a contribution period ranging from 25 to 30 years, starting with an additional 12 months based on the existing contribution period.

Contributors who are 50 Hijri years or older or have 20 or more years of contributions as of the effective date will continue under the current laws without changes. The new law and amendments will take effect on July 3rd, 2024.