Regulations for the Implementation of the Social Insurance Law - Annuities Branch Benefits

Decision of the Minister of Labor and Social Affairs No. (128/Social Insurance) dated 25/10/1421 H.

Previous Amendments
  • 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 registration rules and procedures, determining and collecting contributions, classifying establishments, the principles of 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. 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. He may also clarify or detail what needs to be clarified or detailed from the provisions of those regulations.

      • 2- The Governor may, as deemed necessary for the proper functioning of work, require 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 shall take effect from the specified date for the implementation of the law. 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

SECTION I: METHOD OF COMPUTATION OF CONTRIBUTION MONTHS

Article 1

Previous Amendments
  • In calculating the months of Participation in accordance with the provisions of Article (47) of the Law, the following rules shall be observed:

  • 1- Each calendar month for which a Participation fee is due to the institution based on the full monthly salary subject to Participation according to the provisions of the Law and the Registration and Contributions Regulation shall be considered a month of Participation, whether this is based on the method of fixing the Participation salary on the basis of the salary of the first month of the insurance year, the actual wages method, or any other method followed by the institution in determining the due contributions.

  • 2- A participant who is treated according to the actual wages method shall be treated for the periods for which he has not received his full monthly salary, and which have not previously been included in the period calculated for him according to the provisions of the previous paragraph, as follows:

    • A- If he receives his salary monthly, he shall be credited with one month of Participation for every (30) thirty days for which he received a salary.

    • B- If he receives his salary hourly, he shall be credited with one month of Participation according to the provisions of paragraph (2) of Article (18) of the Registration and Contributions Regulation.

    • C- If he receives his salary daily, he shall be credited with one month of Participation for every (30) thirty days for which he received a salary.

    • D- In the process of aggregating months of Participation according to the previous paragraphs, any remaining working days that amount to (13) thirteen days or more after aggregation shall be considered as one month of Participation, and if the remaining days are less than this amount, they shall be disregarded.

    • E- If his Participation period includes a period for which he is entitled to a daily allowance for injury, this period shall be included in the calculation of the pension or compensation due to him according to the provisions of the pensions branch as if he had received his full salary for it and paid the due contributions.

  • 3- In cases where the Participation fee is collected according to the Gregorian calendar, the differences in days between the Gregorian and Hijri years for the duration of Participation shall be added, if this would enable the participant to meet the qualifying period for entitlement to a pension, particularly in cases of pension entitlement stipulated in paragraphs (1/A), (1/C), (1/D), and (2) of Article (38) of the Law, as well as in cases of disability and death, without these added differences being included in the calculation of the pension.

Article 2

Previous Amendments
  • 1- The day on which the participant's service ended is considered a Participation day, even if no wage was received for that day.

  • 2- If the last month of service is not completed for those whose contributions are calculated based on fixed Participation wages, it is deemed equivalent to a full Participation month for the application of the provisions of paragraphs (1/a), (1/c), (1/d), and (2) of Article (38) and Articles (39) and (40) of the Law, provided that this allows the participant to meet the qualifying period for entitlement to the pension without this month being included in the pension calculation.

  • 3- In the context of determining the qualifying period for entitlement to the non-occupational disability pension and the death pension according to the provisions of paragraph (1) of Article (39) and paragraph (1) of Article (40) of the Law, the Participation months are considered continuous if they relate to periods of work subject to the Law without any time gap between them.

  • 4- In applying the provisions of the previous paragraph, the month of leaving service is not considered a time gap if no Participation is due for it, for participants who pay contributions based on the wages of the first month of the year. However, for participants who pay contributions based on actual wages, periods of absence, unpaid leave, or periods of suspension of the Work Contract that the participant spends with the employer, if no Participation is due for them, are not considered a time gap. Additionally, any period that separates two Participation periods and is less than thirty days is not considered a time gap, provided that the mentioned periods are not included in the Participation duration on which pensions are calculated.

Article 3

Previous Amendments

In the application of the provisions of paragraph (3/e) of Article (38) of the Law, if the subscriber has worked for more than one employer and is entitled to a full subscription from each of them for one month, one month of subscription shall be calculated in favor of the subscriber or their beneficiaries, as applicable, for each calendar month. The total monthly wages that the subscriber is entitled to from multiple employers during the last two years of their subscription period shall be used as the basis for calculating the pension, taking into account the application of the provisions of paragraph (2) of Article (19), paragraph (3) of Article (38) of the Law, and Article (8) of the Compensation Regulations for the Pension Branch.
The governor shall provide the necessary details and examples for the application of this article.

SECTION II: BENEFITS PAYABLE TO CONTRIBUTORS AND METHOD OF COMPUTATION THEREOF

Article 4

Previous Amendments
  • 1- In applying the provisions of Article (38/1) of the Law, it is required for entitlement to a retirement pension that the subscriber has ceased to engage in any work subject to mandatory subscription for mandatory subscribers, and any work subject to optional or mandatory subscription for optional subscribers.

  • 2- In applying the provisions of paragraph (1/b) of Article (38) of the Law, a subscriber who has not reached the age of sixty has the right to apply for the disbursement of the retirement pension once their subscription period has reached at least (300) three hundred months.

  • 3- In applying the provisions of paragraph (1/c) of Article (38) of the Law, subscribers who work in the arduous or health-hazardous jobs specified below have the right to request a retirement pension at the age of fifty-five or older, provided that they have a subscription period of no less than (120) one hundred and twenty months:

    • A- Miners who work inside the mine.

    • B- Quarry workers who are involved in breaking, blasting, and packing stones and raw materials.

    • C- Workers in the field of metal smelting such as iron and steel who work in front of high-temperature furnaces.

    • D- Divers whose usual work requires diving into the depths of the seas.

  • It is a condition for the subscriber to benefit from the provisions of this paragraph that they have continued to engage in the aforementioned jobs effectively throughout the last five years of their subscription period, which is proven by an inspection report approved by the office manager.

  • 4- Notwithstanding the provisions of paragraph (1) of this article, entitlement to the pension in paragraphs (1/b), (1/c), and (1/d) of Article (38) of the Law begins from the first of the month following the submission of the pension disbursement application if submitted before reaching the age of sixty.

Article 5

Previous Amendments
  • 1- In the application of the provisions of paragraph (1/d) of Article (38) of the Law, the institution shall pay the pension to the family of the imprisoned member temporarily before reaching the age of sixty, provided that the qualifying period for entitlement to this pension is met, in addition to the following conditions:

    • A- A judgment or order has been issued against him by the competent authority sentencing him to imprisonment for a period of no less than three months, or the member remains in prison for that duration.

    • B- The employer has notified the institution of the termination of the member's service.

  • 2- The entitlement to the pension stipulated in paragraph (1) of this article begins from the first month following the date the member enters prison for those against whom a judgment or order has been issued by the competent authority, and from the first month following the expiration of three months for those who remain in prison for that duration. The right to the pension ends at the close of the last day of the month in which the member is released from prison, in addition to three subsequent months. The relevant office must coordinate with the prison administration to ascertain the actual date of the member's entry and exit from prison.

  • 3- The pension shall be disbursed to the family members of the imprisoned member mentioned in Article (8/2) of the Law through a person designated by the member from among them, with a declaration approved by the prison administration where he is held. If no one is designated, the institution may disburse the pension to a representative appointed by his family members. If they do not appoint anyone, the pension shall be paid to the wife (or to the husband if the imprisoned member is a woman) or to their legal heirs.

  • 4- The pension entitlement due to the imprisoned member under paragraph (1/d) of Article (38) of the Law becomes final if he reaches the age of sixty while in prison. If he dies before that, or suffers a non-occupational disability as stipulated in Article (39) of the Law, his pension shall be recalculated, and he shall be treated as someone who died or suffered a disability after leaving the work subject to the Law, and before reaching the age of sixty.

  • 5- If the imprisoned member is released before reaching the age of sixty, and the deadline specified under paragraph (2) of this article has expired, he shall be treated as any member whose subscription period ends before reaching the age of sixty.

  • 6- Subject to the provisions of the preceding paragraphs, the pension due to the imprisoned member shall be subject to all provisions of the Law and these regulations, especially regarding the conditions for the continued right to receive the pension.

Article 6

Previous Amendments

In the application of the provision of paragraph (2) of Article (38) of the Law, a participant who applies for the disbursement of their pension at the age of sixty or older, and has a participation period of at least (60) sixty months and not exceeding (120) one hundred and twenty months, and ceases to engage in any work subject to the law, has the right to request the inclusion of a notional period to the extent that qualifies them to receive the pension, provided that the period to be included does not exceed five years. The participant must pay a total of contributions for the pension branch at a rate of (18%) for each month of the included period, calculated based on the average monthly wage for the participation on which the pension is estimated. The participant must pay these contributions either in a lump sum or by deducting the accumulated pension due to them from the date of their retirement and paying the remaining amount in monthly installments at a rate of (25%) of the value of their monthly pension until the full amount due is settled. If they pass away before settling the full amount, the institution's right to the remaining installments is forfeited.

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