11 hours ago
Saudi Arabia's new Social Insurance Law takes effect from today
Saudi Arabia's new Social Insurance Law, issued last year on July 2 by a Royal Decree, came into force this Tuesday.
The General Organisation for Social Insurance (GOSI) stated that the law applies exclusively to new civil employees joining the public and private sectors, who do not have any prior contribution periods in the current Civil Pension Law or Social Insurance Law.
#التأمينات_الاجتماعية تعلن بدء تطبيق أحكام نظام التأمينات الاجتماعية المعلن عنها سابقاً اعتباراً من يوم غدِ الثلاثاء 1 يوليو 2025م.
📎|
— التأمينات الاجتماعية (@SaudiGOSI) June 30, 2025
New Social Insurance Law takes effect
The amended law stipulates a gradual increase in retirement age. There will be no change in the current GOSI subscriber benefits. The organisation stated that the statutory retirement age for individuals affected by the amendments will range between 58 and 65 years.
The law will expand the scope of insurance coverage to include more categories and will achieve flexibility in job transfers between the public and private sectors without affecting subscribers' insurance rights by unifying insurance provisions under a single law.
The new regulations, to be applied to new subscribers to the Social Insurance System, include a gradual increase in the pension branch subscription rates by 0.5 per cent annually, starting from the second year of the system's validity until the fifth year. The cumulative increase will be 2 per cent, which means the subscription rate becomes 11 per cent instead of 9 per cent for the subscriber and the employer.
To preserve the rights of employees, the law stressed the need for employers to commit to paying subscriptions on their specified dates.
The maternity benefit also come into effect from Tuesday, July 1. Female subscribers, whether Saudi or non-Saudi, are entitled to maternity compensation for three months upon giving birth.
The GOSI has urged all customers, both subscribers and employers, to review all the details related to these provisions through the awareness platform on the organisation's website or on the GOSI app.
