Riyadh: The General Organization for Social Insurance (GOSI) clarified the details of the Council of Ministers' decree, which approved the New Social Insurance Law that is applicable exclusively to new employees. Furthermore, the decree affirmed the continued application of the existing Civil Pension and Social Insurance laws for current contributors, with 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 clarified further 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.

The provisions of the current Civil Pension and Social Insurance laws will continue to be effective for current contributors, with 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 and those with ages below 50 Hijri years as of the date the amendments come into effect.

Furthermore, GOSI stated that the statutory retirement age for individuals affected by the amendments will range between 58 and 65 years Gregorian. This will involve a gradual increase, starting with an addition of 4 months to the current statutory retirement age, based on the contributor's age at the date the amendments come into effect.

While for early retirement, the required contribution period will range from 25 to 30 years Gregorian, with a gradual increase starting with an addition of 12 months to the current required contribution period, depending on the contribution period at the date the amendments come into effect.

On the other hand, 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 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. More details can be found at awareness.gosi.gov.sa.