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Council of Ministers Approves Social Insurance Law for New Employees

The General Organization for Social Insurance (GOSI) explained the Council of Ministers’ decree approving the New Social Insurance Law for new employees. The decree also stated that current contributors will continue under the existing Civil Pension and Social Insurance laws, except for changes to the retirement age and contribution periods for pension eligibility as outlined in the decree.

GOSI clarified that the New Social Insurance Law will apply only to new employees in the public and private sectors who have no prior contributions to the current Civil Pension or Social Insurance Laws. The current laws will remain effective for existing contributors, except for provisions on statutory retirement age and required contribution periods for pension eligibility. This exception applies to contributors with less than 20 years of service and those under 50 Hijri years old as of the amendment date.

Amendments to Retirement Age

Furthermore, GOSI stated that the statutory retirement age for individuals affected by the amendments will range between 58 and 65 years. 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 when the amendments take effect. For early retirement, the required contribution period will range from 25 to 30 years. This will also see a gradual increase, starting with an addition of 12 months to the current required contribution period. Moreover, it depends on the contribution period when the amendments take effect.

The current Civil Pension and Social Insurance laws will remain unchanged for contributors who are 50 or older or have 20+ years of contributions when the amendments take 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 03/07/2024.

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