Regulations for Implementations of the Unemployment Insurance Law

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Minister of Labor Decision No. (181/ Insurance) dated 6/6/1435 AH

The Minister of Labor,

After reviewing the Unemployment Insurance Law issued by Royal Decree No. (M/18) dated 12/3/1435 AH, and Article (Twenty-Eight) of the Unemployment Insurance Law which states that "The Minister shall issue the regulation – based on the approval of the Board of Directors – within sixty days from the date of publication of this law, and it shall be published in the Official Gazette," and after reviewing the decision of the Board of Directors of the General Organization for Social Insurance No. (1101) dated 1/6/1435 AH regarding the approval of the Implementing Regulation of the Unemployment Insurance Law.

Decides the following:

Article One: - Issuance of the Implementing Regulation of the Unemployment Insurance Law in the attached form.

Article Two: - The provisions of this Implementing Regulation shall be considered complementary, explanatory, and detailed to the provisions of the Law.

Article Three: - The Governor of the Organization may delegate some of his powers stipulated in this Implementing Regulation to employees he designates from the Organization’s staff.

Article Four: - This decision and the attached regulation shall come into effect as of (1/11/1435 AH) for establishments following the Hijri calendar and as of (1/9/2014 AD) for establishments following the Gregorian calendar.

Article Five: - This decision and the attached regulation shall be published in the Official Gazette.

Minister of Labor

Adel bin Mohammed Faqih

Article 1

Previous Amendments

The following words and phrases - wherever they appear in this Regulation - shall have the meanings indicated next to them unless the context requires otherwise:
Law: Law on Unemployment Insurance.
Unemployment: The loss of an Employee's job for reasons beyond their control, while being able and willing to work, and actively seeking employment.
Compensation: The monetary benefits provided by the Law.
Ministry: Ministry of Labor.
Organization: General Organization for Social Insurance.
Fund: Human Resources Development Fund.
Board of Directors: Board of Directors of the General Organization for Social Insurance.
Minister: Minister of Labor.
Governor: Governor of the General Organization for Social Insurance.
Employer: Any natural or legal person - to whom the Law applies - who employs one or more Employees who meet the conditions stipulated in the Law.
Subscriber: Anyone subject to the Law, whether male or female.
Beneficiary: The Subscriber who is unemployed and meets the conditions for entitlement to Compensation according to the provisions of the Law.
Job Seekers Database: The database of job seekers maintained by the Fund.

Article (2)

  • In the application of the provisions of paragraphs (1) and (2) of Article (3) of the law, the age of the worker shall be at the beginning of the application of the law to him under the age of fifty-ninth and shall cease his participation if he reaches the age of sixty on the job. Before he reaches the age of fifty-ninth and then returned to work subject to the law at the age of fifty-ninth and above and under the age of sixty apply to the law at the date of return taking into account the suspension of participation if he reaches the age of sixty on the job. The law shall be applied on a mandatory basis to the Saudis who are subject to the pension branch under the social insurance law according to the following details:

    • 1. Subject to the law:

      • (A) Workers who have an contractual relationship with the employer to perform a work mainly in the Kingdom for a remuneration, whatever the nature, form or duration of the relationship, and regardless of the amount of remuneration paid or of its kind.

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Article (3)

  • 1- The registration shall be registered in the institution for both employers and subscribers subject to the law in accordance with the same registration provisions stipulated in the Registration Regulations and Contributions to the Social Insurance Law in accordance with the nature of the provisions of the Law,

  • A / Registration in accordance with the provisions of the registration regulations and contributions to the social insurance law is sufficient to register in the law.

  • (B) The time limit for the employer to register his workers or the worker specified for the registration of himself in the case of the employer's waiver may not exceed that of any period of work.

  • 2- The rules of the establishments that are terminated shall be determined in accordance with the same rules specified in the registration regulations and contributions to the social insurance law.

Article 3 bis

Previous Amendments

In the application of the provisions of Article (7) of the Law, the contributions are determined and adjusted according to the following mechanism:
1 - The contributions are set at a rate of (2%) two percent of the wage subject to contributions if the total assets of the branch account do not exceed (7) seven times its expenses in the year preceding the effective date of the amendment to Article (7) of the Law.
2 - The contributions are adjusted - at a rate not exceeding (2%) two percent and not less than (0.5%) half a percent of the wage subject to contributions - based on the results of the financial condition assessment of the branch account every three years as follows:
A- The contributions are reduced by (0.5%) half a percent if the total assets of the branch at the end of the three years exceed (7) seven times its expenses in the last year.
B- The contributions are increased by (0.5%) half a percent if the total assets of the branch at the end of the three years are less than (7) seven times its expenses in the last year.

Article (4)

  • Shall be applied in respect of the performance of contributions provided for in the Law with the provisions of the Registration and Contributions Regulations of the Social Insurance law in accordance with the nature of the provisions of the Law.

Article (5)

  • The age of the participant shall be recorded at the start of the subscription as required by the provisions of Article (17) of the Law and the provisions specified in the Registration and Subscription Regulations of the Social Insurance law

Article 6

Previous Amendments
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Article (7)

  • In the application of the provisions of Articles (9 and 10) of the Law, the following shall be observed:

    • 1. The contributor shall register with the Fund no later than ninety (90) days from the date of leaving the work subject to the law in accordance with the mechanism and documents specified by the Fund.

    • 2- The coordination between the organization and the Fund shall be carried out to verify the availability of the conditions of entitlement to compensation provided for in Article 8 of the Law as follows:

      • (A) The organization shall verify that the contributor has met the following conditions:

      • - To be a Saudi national in accordance with the provisions of paragraph (1) of Article (6) of these Regulations.

      • - He is still alive.

      • - He must have the terms of contribution eligible for eligibility in accordance with the provisions of Article (XIV) of the law.

      • - He must not have attained the age of 60 in accordance with the provisions of paragraph (3) of Article (6) of these regulations.

      • - Does not have any special activity or income from work in accordance with the provisions of paragraphs (4) and (5) of Article (6) of these Regulations.

      • - has not been dismissed from work due to a fault of his own in accordance with the provisions of paragraph (6) of Article (6) of these regulations.

      • - Has not willingly left employment in accordance with the provisions of paragraph (7) of Article (6) of these Regulations.

    • B) The Fund shall verify that the contributor has met the following conditions:

      • - Registration with the Fund within (90) days from the date of leaving the work subject to the law.

      • - The participant's ability to work according to the provisions of paragraph (8) of Article (6) of these regulations.

        • - Serious research on work and commitment to training and compliance with the instructions and directives as provided for in paragraph (9) of Article (6) of these Regulations.

          • 3. After the provisions of paragraph (2) above, the contributor shall apply to the organization to apply for compensation according to the mechanism and documents specified by the Governor. The date of completion of registration with the Fund shall be the date of availability of the conditions of entitlement.

          • 4. The organization and the Fund shall verify the availability of the conditions of entitlement to compensation to the Beneficiary, each in his own capacity, throughout the period of disbursement of the compensation.

          • 5. The preceding paragraphs shall be complied with at each time of maturity.

Article (8)

  • In the application of the provisions of paragraph (2) of Article (10) of the law, the beneficiary shall abide by the following:

    • 1- Notification of the Fund within a period not exceeding seven days in the event of any change in the data and information provided to the Fund.

    • 2 - notice of the institution within a period not exceeding seven days in the event of any change of data and other information relating to the application of the provisions of the law.

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