Saudi Arabia’s General Organization for Social Insurance (GOSI) has recently announced an increase in the retirement age to 65 under the new Social Insurance Law. This amendment sets the statutory retirement age for those affected to be between 58 and 65 years.
The law specifies a gradual increase, beginning with an addition of four months to the current retirement age, based on the contributor’s age when the amendments take effect.
For early retirement, the required contribution period will now range from 25 to 30 years, starting with an additional 12 months to the current requirement. This adjustment depends on the contribution period at the time the amendments come into force.
The new law ensures that existing civil pension and social insurance laws will remain unchanged for contributors who are 50 Hijri years old or older, or who have 20 or more years of contributions as of the amendment date.
GOSI clarifies decree details
Saudi Arabia’s GOSI has provided further details on the council of ministers’ decree, which approved the New Social Insurance Law, applicable exclusively to new employees.
The decree confirmed that the existing civil pension and social insurance laws will continue for current contributors, with exceptions for the statutory retirement age and required contribution periods for pension eligibility as specified.
The New Social Insurance Law will only apply to new employees joining the public (civil) and private sectors who do not have any previous contribution periods under the current civil pension or social insurance laws.
