• The following words and phrases – wherever they appear in this Law – shall have the meanings indicated next to them, unless the context requires otherwise:

  • Ministry: Ministry of Labor.

  • Minister: Minister of Finance.

  • Law: Law on Unemployment Insurance.

  • Organization: General Organization for Social Insurance.

  • Board of Directors: Board of Directors of the General Organization for Social Insurance.

  • Regulation: Implementing Regulation of this Law.

  • 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 this Law.

  • Employer: Any natural or legal person – to whom this Law applies – who employs one or more Employees who meet the conditions stipulated in this Law.

  • Subscriber: Any person subject to this Law, whether male or female.

  • Beneficiary: The unemployed Subscriber who meets the eligibility conditions for Compensation according to the provisions of this Law.

• Unemployment insurance shall be deemed a branch of social insurance and shall guarantee payment of compensation to unemployed subscribers in accordance with the provisions stipulated thereunder.

• 1. This Law shall apply to all Saudi workers without discrimination on the basis of gender, provided that the worker is under the age of fifty nine at the time this Law enters into force.

• 2. A worker's subscription shall terminate upon reaching the age of sixty.

• 3. Subject to paragraphs 1 and 2 of this Article, this Law shall apply to any person covered by the Annuities Branch under the Social Insurance Law.

• 1. Employers shall comply with this Law and its Regulations. The application of the Law and the Regulations shall commence on the date the conditions provided for therein are satisfied by the subscriber.

• 2. The Regulations shall specify the manner of registration with GOSI for employers and subscribers covered by this Law.

• GOSI shall coordinate with the Ministry in applying this Law. The coordination shall be as follows:

  • 1. GOSI shall have the following responsibilities:

    • a) Register subscribers and collect subscription fees.

    • b) Pay compensation to beneficiaries.

    • c) Manage and invest the account designated by this Law.

    • d) Verify satisfaction of the conditions provided for in Article 8(1)(a, b, d, and g) and Article 15(1)(a, b, h and i) of this Law.

  • 2. The Ministry, or any public or private entity assigned thereby, shall have the following responsibilities:

    • a) Register unemployed subscribers.

    • b) Provide necessary training.

    • c) Verify satisfaction of the conditions provided for in Article 8(1)(c, e, f, h, i, j and k) and Article 15(1)(c, d, e, f and g) of this Law.

• Pursuant to a decision by the Minister, a committee comprising representatives of the Ministry and GOSI shall be formed to coordinate between both parties in implementing the provisions of this Law. The Regulations shall specify the rules governing the work of said committee.

The contributions in this law are determined by a decision from the Council of Economic and Development Affairs based on a proposal from the Minister after the Board of Directors has expressed its opinion according to a mechanism specified in the regulation, at a rate not exceeding (2%) of the salary subject to contributions and not less than (0.5%), provided that the employer pays half of the specified contribution monthly and the participant pays the other half.

• 1. A subscriber may receive the compensation provided for herein upon satisfaction of the following:

  • a) Be a Saudi citizen;

  • b) Complete the period specified in Article 14 hereof.

  • c) Not have been dismissed from work due to a fault of his own.

  • d) Does not have any income from private business.

  • e) Not to have willingly left employment.

  • f) Be able to work. g) Not to have reached the age of sixty.

  • h) Be registered with the Ministry.

  • i) Be actively seeking employment.

  • j) Be committed to the training specified by the Ministry.

  • k) Comply with instructions and directions issued by the Ministry.

• 2. The Regulations shall specify the application of the preceding paragraph.

• A beneficiary shall be entitled to compensation from the first day of the month following the date on which the conditions provided for in Article 8 hereof are satisfied, provided that his registration is within the period set forth in Article 10 of this Law.

• 1. A subscriber must register with the Ministry within 90 days from the date on which an employment covered by this Law is terminated.

• 2. A beneficiary must notify the Ministry within a period not exceeding seven days from the date of any of the following:

  • a) Not satisfying any of the conditions for compensation.

  • b) Any change in the data and information provided to the Ministry.

• 3. The employer shall provide the Ministry with the requested information concerning the subscriber’s employment and reasons for termination thereof.