• The Minister of Labor and Social Affairs

• After reviewing the Social Insurance Law issued by Royal Decree No. (M/33) dated 3/9/1421 AH.

• And the executive regulations of the previous Social Insurance Law in the areas of rules and procedures for registration, determining and collecting contributions, classifying establishments, and the principles for submitting objections, rules and procedures for applying the pensions branch, rules and procedures for applying the occupational hazards branch, rules and procedures for organizing work in inspection bodies, and rules and procedures for the work of medical committees issued by the decisions of the Minister of Labor and Social Affairs No. (2/Insurance) dated 11/9/1392 AH, No. (15/Insurance) dated 28/1/1395 AH, No. (19/Insurance) dated 7/11/1395 AH, No. (61/Insurance) dated 6/4/1402 AH, No. (104/Insurance) dated 12/3/1411 AH, and the amended decisions thereto.

• In light of the requirements of the new law for the necessity of issuing new executive regulations that take into account the provisions it has introduced and the amendments it has made.

• Based on the decision of the Board of Directors of the General Organization for Social Insurance No. (735) dated 25/10/1421 AH regarding the executive regulations it approved as a replacement for the aforementioned regulations.

• The following is decided:

  • Article One

    • The attached regulations regarding the implementation of the provisions of the Social Insurance Law issued by Royal Decree No. (M/33) dated 3/9/1421 AH shall be enforced as follows:-

      • 1- Registration and Contributions Regulation.

      • 2- Pensions Branch Compensation Regulation.

      • 3- Occupational Hazards Branch Compensation Regulation.

      • 4- Medical Committees Regulation.

  • Article Two

    • In the context of defining the terms mentioned in the regulations referred to in the previous article, reference is made to their meanings as stated in Article Two of the law in addition to the definitions included in each of the attached regulations for the terms unique to them, in addition to the meanings specified next to the following terms:-

      • 1- The Law: The Social Insurance Law issued by Royal Decree No. (M/33) dated 3/9/1421 AH.

      • 2- The Previous Law: The Social Insurance Law issued by Royal Decree No. M/22 dated 6/9/1389 AH.

  • Article Three

    • The provisions of these executive regulations are considered complementary, explanatory, and detailed to the provisions of the law.

  • Article Four

    • 1- The Governor of the General Organization for Social Insurance shall determine the form and specifications of the necessary models and certificates for implementing the attached regulations, the conditions and terms of their use, and the deadlines for their submission, and he has the authority to make any changes regarding them, whether by amending them through deletion or addition, or by merging some with others, or canceling any of them, or creating any new models or certificates, and he may clarify or detail what needs to be clarified or detailed from the provisions of those regulations.

    • 2- The Governor may, as required by the interest of the smooth operation, obligate all or some employers to comply with electronic dealings with the organization.

    • 3- The Governor may dispense with the requirement to submit the documents stipulated in the attached regulations if the organization has the data of those documents by any other means whenever it is easier for the organization’s work system, especially what is compatible with the automated methods for registration and disbursement of compensations.

    • 4- The Governor may delegate some of his powers stipulated in the attached regulations to those he designates from the organization’s employees.

  • Article Five

    • 1- In application of the provisions of paragraph (2) of Article (68) of the law, the executive regulations of the previous law issued by the ministerial decisions referred to in the introduction of this decision are canceled.

    • 2- The decisions issued previously that include special treatments for cases of certain categories of employers or categories of participating workers shall remain in effect, provided they do not conflict with the provisions of the law and the attached regulations.

    • 3- The decisions issued in the areas of organizing work or its implementation procedures shall remain in effect as long as they do not conflict with the provisions of the law and the mentioned regulations until they are amended or replaced by new decisions.

  • Article Six

    • This decision and the attached regulations shall be published in the official gazette, and it shall take effect from the specified date for the implementation of the law, and the Governor of the General Organization for Social Insurance shall take the necessary measures for its implementation.

•  

• Minister of Labor and Social Affairs

• Ali bin Ibrahim Al-Namlah

• In the field of defining the terms contained in this Regulation, reference is made to their meanings as stated in Article (2) of the Social Insurance Law and Article (2) of the Minister of Labor and Social Affairs Decision No. 128/Social Insurance dated 25/10/1421 AH regarding the issuance of the Regulation, in addition to the meanings specified next to the following terms:

• 1- Employer: Any natural or legal person who employs one or more employees, subject to mandatory participation, under a contract regardless of its duration, nature, or form, in exchange for a wage.

• 2- Establishment: The legal entity through which the employer conducts their activity, bearing their name or the trade name of this activity.

• 3- Employer's branches: The multiple locations through which the employer conducts a single activity.

• 4- Employer's participation number: The registration number of the employer or their branches with the institution.

• 5- Participant number: The fixed registration number of the participant with the institution.

• 6- Participation card: The card issued by the institution to the participant upon their first registration, bearing their fixed participation number.

• 7- Participation month: The Gregorian month for which the participation is paid.

• 8- Participation year: The year for which the participation is paid, starting from January.

• 9- Basic wage: The amount received by the participant who is subject to the law mandatorily in exchange for their work under a written or unwritten contract, regardless of the method of performance or calculation, after excluding allowances that may be granted based on the type of work, its degree of risk, or the place of performance, or for additional working hours, or for other reasons regardless of the title of what is granted in return, as well as after excluding grants, annual bonuses, and in-kind benefits. Commission and percentages of sales or profits are considered equivalent to the basic wage, whether the wage is limited to them or added to a fixed wage.

• 10- Participation wage: The wage of the employee who is mandatorily participating, for which the monthly participation is paid, as specified under the provisions of Article (16) of this Regulation. 

• 11- Income bracket: The monthly amount that the participant voluntarily chooses from among the income brackets specified in the attached Table No. (1), based on which the value of the monthly participation they pay and the value of the compensations they may be entitled to are calculated, and it is treated as the participation wage for the mandatory participant.

• 12- Participant's share:

  • A- The participation that the mandatory employee bears for each month of participation, deducted from their wage, as stipulated in paragraph 2/A of Article (18) of the law.

  • B- The participation that the participant voluntarily pays for each month of participation, as stipulated in paragraph (1) of Article (8), and paragraph 2/B of Article (18) of the law.

• 13- Employer's share: The participation that the employer pays on behalf of their participating employee in the system for each month of participation according to the provisions of paragraph (1) and paragraph (2/A) of Article (18) of the law.

• 14- Delay period: The number of months of delay starting from the day following the expiration of the fifteen-day period specified for the payment of contributions until the actual payment date, considering a part of a month as a full month.

• 15- Delay fines: The amounts that the employer or the participant is obligated to pay voluntarily for the delay in the payment of monthly contributions.

• Taking into account the gradual implementation stages of the Law, and the requirements set forth by the Law and its executive regulations for its application, the branch of occupational hazards applies to both Saudis and non-Saudis, while the application of the pensions branch is limited to Saudis only. The application may be mandatory or optional, depending on the circumstances, with consideration to the following details:

• 1- Those subject to the Law mandatorily:

  • A- Employees who have a contractual relationship with the employer to perform work primarily within the Kingdom for a wage, regardless of the nature, form, or duration of this relationship, and regardless of the amount or type of wage paid. In the context of applying the pensions branch, it is required that the employee's age does not exceed sixty years according to the Hijri calendar at the start of participation, taking into account the provisions of paragraph (2) of Article (4) of the Law in this regard. A trainee is not considered an employee under this definition unless their training is for the purpose of progression.

  • B- The Saudi employee who works outside the Kingdom for an employer whose main office is located within the Kingdom is subject to the pensions branch, provided that a work relationship is established between them and the employer.

  • C- Employees in government agencies and public institutions who are not subject to the civil or military retirement systems.

• 2- Those subject to the Law optionally: These are Saudis from the following categories: 

  • A- Those engaged in freelance professions such as doctors, engineers, attorneys, and owners of consulting offices, provided they obtain a license to practice the profession from the relevant authorities.

  • B- Those who operate for themselves or in partnership with others in commercial, industrial, agricultural, or service activities, and their engagement in these activities is evidenced by the commercial register, or the specific license for the activity, or other documents issued by the relevant authorities.

  • C- Craftsmen who practice their trades based on a license issued by the relevant authorities, such as blacksmiths, carpenters, plumbers, and similar professions.

  • D- Employees working outside the Kingdom, without being linked to a work relationship with an employer whose main office is located within the Kingdom, provided they present a certified certificate from the Kingdom's embassy in the country of residence confirming their employment.

  • E- Participants whose mandatory participation in the pensions branch has ceased due to their exclusion from the mandatory application, and who wish to continue participating in it, according to Article (8) of the Law.

  • F- Saudi citizens working in international, political, and military missions in the Kingdom - if they are not subject to mandatory participation - have the right to request optional participation in the Law, and in this case, they are treated as the categories specified in paragraph (4) of Article (4) of the Law.

• 3- Exempted categories:

  • A- Civil and military state employees who are subject to retirement systems, and this exemption does not extend to retirees among them who meet the conditions for participation in the Law.

  • B- Foreigners working in an international, political, or military mission: this refers to the employee or non-Saudi worker who works in any of these entities, regardless of the nationality unity between them and the entity they work for.

  • C- Workers engaged in agricultural, forestry, or pastoral activities: this refers to anyone working in forests, farming land, guarding crops, operating or repairing agricultural machinery, and this exemption does not extend to workers engaged in those activities if they belong to the following categories:

    • 1- Those working in agricultural establishments that manufacture their products.

    • 2- Those subject to the Labor Law.

    • 3- Employees in government agencies and public institutions.

    • 4- Employees in companies established under the provisions of the Companies Law or the Foreign Investment Law.

    • 5- Employees in individual establishments according to the regulations set by the governor.

  • D- Sailors: this refers to workers who work on maritime vessels for transport or fishing, and this exemption does not extend to workers in those activities if they belong to the following categories:

    • 1- Workers at the employer's headquarters, who have made maritime or fishing their profession, and if any of them are transferred to maritime work with the same employer, they continue to benefit from the Law if it has been applied to them.

    • 2- Sailors working in maritime establishments that manufacture what their vessels catch, and the governor defines the concept of manufacturing intended by this provision.

    • 3- Those subject to the Labor Law.

    • 4- Employees in government agencies and public institutions.

    • 5- Employees in companies established under the provisions of the Companies Law or the Foreign Investment Law.

    • 6- Employees in individual establishments according to the regulations set by the governor.

    • E- Domestic servants: this refers to household workers who perform domestic services.

    • F- Foreign workers brought to the Kingdom to perform tasks that typically do not take more than three months to complete, such as visiting doctors, consultants, and similar roles.

    • G- Independent workers: these are independent workers who work for themselves and do not employ any workers, and their place of work is their residence.

    • H- Family members of the employer who work in family establishments where no other workers are employed: these are the family members specified in paragraph (8) of Article (2) of the Law. The exempted categories in paragraphs (ز) and (ح) have the right to request optional participation as stipulated in Chapter Five of these regulations. The exemption for the categories specified in paragraphs (ج - د - هـ) does not preclude the possibility of subjecting them to the Law in the future according to the provisions of paragraph (2) of Article (5) of the Law.

The governor may require any of the parties subject to the provisions of this regulation to interact with the institution electronically.

• Employers and their workers in the private sector are registered according to the forms approved by the governor, and workers in the public sector are registered based on the appointment decision, while they are excluded based on the decision to cancel the registration. Additionally, voluntary participants are registered according to the approved form for that purpose.

• The governor may exempt from adherence to the approved forms or replace them with alternative forms whenever it is easier for the operational system of the institution, particularly in a manner that aligns with the automated methods of accounting for employers.

• The institution shall print the approved forms and distribute them, in exchange for a fee determined by the governor, and he may distribute them free of charge in cases he deems appropriate. With the governor's approval, employers may print all or some of these forms at their own expense, limited to the quantities necessary for their use only. Employers or others may not, under any circumstances, print these forms for the purpose of selling them to others without the governor's approval. In all cases, it is required that the forms printed by employers include the data contained in the approved forms from the institution, and that they adhere to the same specifications in terms of size, color, and areas, and that the number and date of the governor's approval for their printing is indicated on them.

• If the employer has multiple branches or activities, they shall be treated according to the following rules and procedures:

• 1- In the area of determining the start date of the subjection of each activity of the employer:

  • A- If the employer's activities are diverse and each activity has been established in accordance with the applicable regulations and has acquired legal personality and independent financial liability, then each activity is independent of the other activities and is treated as an independent employer, even if the owner of this activity is the same as the owner of the other activities.

  • B- In cases other than that specified in the previous paragraph, the total branches and activities of the employer are considered a single unit as long as the owner of each activity or branch is the same as the owner of all other activities and branches.

• 2- In the area of submitting forms and paying contributions:

  • A- If the employer has multiple branches and all are engaged in a single activity, then the group of branches located within the jurisdiction of one office is treated as a single employer, while branches located in different office jurisdictions are treated as independent employers.

  • B- If the employer's activities are diverse and each has an independent financial entity, then each activity is considered as an independent employer, even if those activities fall within the jurisdiction of one office; however, if they do not have an independent financial entity, they shall be treated according to the provisions of the previous paragraph.

  • C- The governor may, in the interest of business, consider the branches or activities of the employer as a single unit in their dealings with the institution, or accept centralized payment for all branches and activities through the main center, or decentralized payment through each of the different branches and activities, or centralized payment for some and decentralized payment for others, as deemed necessary to facilitate dealings with the employer and in a manner that does not conflict with the interests of the institution.