Saudi New Social Insurance Law Comes into Force
The provisions of the new Social Insurance Law, issued by a Royal Decree on July 2, 2024, came into effect on July 1, 2025. The General Organization for Social Insurance (GOSI) announced that this law applies exclusively to new civil employees in the public and private sectors who have no prior contribution periods under the existing Civil Pension Law or Social Insurance Law.
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Key Features of the New Law
Retirement Age and Benefits
- Gradual Increase: The retirement age will gradually increase, ranging from 58 to 65 years.
- Current Subscribers: There will be no changes to benefits for existing GOSI subscribers.
Insurance Coverage and Flexibility
- The law aims to expand insurance coverage and provide flexibility for job transfers between the public and private sectors, unifying insurance provisions under a single law.
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Subscription Rates
- Pension Branch Subscription Rates: These will increase gradually from the second to the fifth year of the system’s validity by 0.5% annually, resulting in a cumulative increase of 2%. Thus, the subscription rate will rise from 9% to 11% for both subscribers and employers.
Employer Obligations
- Employers must adhere to payment deadlines for subscriptions to protect employees’ rights under the system.
Maternity Benefits
- Starting July 1, GOSI will also implement maternity benefits, providing female subscribers (both Saudi and non-Saudi) with maternity compensation for three months upon giving birth.
Additional Information
GOSI encourages all subscribers and employers to review the details of these provisions through the awareness platform on their website or via the GOSI app.
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