The Saudi General Organization for Social Insurance (GOSI) has announced that the newly approved Social Insurance Law will apply exclusively to new civil employees joining the public and private sectors without prior contribution periods under the current Civil Pension Law or Social Insurance Law.

The revised law mandates a gradual increase in the retirement age while maintaining existing benefits for current GOSI subscribers.

Key Points of the New Social Insurance Law:

Gradual Increase in Retirement Age: The statutory retirement age for new contributors will range between 58 and 65 Gregorian years, with an initial addition of four months based on the contributor’s age at the time of the amendments' effect.

Early Retirement Adjustments: For early retirement, the contribution period required will range from 25 to 30 Gregorian years, with an initial addition of 12 months based on the contribution period at the time of the amendments' effect.

Current Subscribers Unaffected: Current subscribers who are 50 Hijri years or older or have 20 or more years of contributions will not be affected by the changes. The existing Civil Retirement Law and Social Insurance Law provisions will continue to apply to them.

Effective Date: The new law and provisions related to retirement age and required contribution periods will take effect on July 3, 2024.

Exclusions: The amendments do not affect current pensioners or beneficiaries of deceased pensioners' family members, who will retain their existing benefits.

Maternity Compensation: The new law includes provisions for maternity compensation, aimed at enhancing women's empowerment and employment opportunities in the labor market, and reducing financial burdens on employers.