14% Bonus Of Annual Salary For Those Leaving Service Without Pension Benefit
Category: Saudi Arabia
14-bonus-of-annual-salary-for-those-leaving-service-without-pension-benefit-saudi

The new Civil Pension Law, approved by the Council of Ministers on June 14, provides a bonus of 14 percent of the annual salary of employees whose service ends without having reached the period entitles them to receive a pension.

As stated in the new law, if an employee's service is terminated due to resignation or termination as a disciplinary action, the bonus is calculated based on 10 percent of the annual salary for each year calculated from the number of years the employee served.

Umm Al-Qura published details of the new law, which includes changes to the previous Civil Pension Law, as well as the Law of Benefit Exchange between the Civil and Military Pension Laws and the Social Insurance Law in relation to employees' dues upon retirement as a reward or pension. The last weekly Cabinet meeting approved all of these laws.

In order to receive the bonus stipulated in articles 18 and 23 of the Civil Pension Law, one must be 60 years of age or have died, whichever comes first. When an employee reaches the age of 60 without reaching ten years of service that would entitle him to a pension, he is entitled to a pension in such a case.

In accordance with the Social Insurance Law, if a subscriber loses his job, he is entitled to a lump sum compensation in the event that he does not reach 60 years of age, or if he is disabled as per the law's executive regulations.

In accordance with the Law of Benefit Exchange, if an employee has at least five years of service and has reached the age of 60, he may request the inclusion of a nominal period, provided the added period does not exceed ten years, and he must pay the full contribution for each month of the added period, based on his last monthly salary.

During a merger resulting from transformation or privatization, it is not allowed to combine the retirement pension with the salary of the job covered by any of the civil and military pension laws.

The employer is responsible for the extra costs relating to the two laws if a public utility is privatized or its employees are transferred from one law to another, according to the law.

20 Jun, 2022 0 581
Posted Comments
FEEDBACK
@ www.arablocal.com All Rights Reserved
@ www.arablocal.com All Rights Reserved