Saudi Arabia Raises Retirement Age to 65 in New Social Insurance Law

Saudi Arabia has introduced a new Social Insurance Law that increases the maximum retirement age for new employees to 65.

The General Organization for Social Insurance (GOSI) details the new law, applicable only to new public and private sector workers who haven’t contributed to existing pension schemes.

Existing Laws Remain for Current Contributors

Current employees remain covered by existing Civil Pension and Social Insurance Laws, with exceptions for retirement age and contribution periods for those impacted by the new decree.

The law implements a gradual rise in the retirement age for affected individuals. This starts with an additional four months to the current age, based on the employee’s age on July 3, 2024 (27/12/1445 H), the effective date.

Early Retirement Requirements

For early retirement under the new law, the required contribution period increases gradually by 12 months from the current requirement, ranging from 25 to 30 years depending on the employee’s existing contribution period.

The reform won’t impact employees who are 50 Hijri years old or older, or those with at least 20 years of contributions as of the effective date. These individuals will continue to be covered by the existing Social Insurance Laws.

GOSI Announces Implementation Date

GOSI confirmed the new law and its provisions regarding retirement age and contribution periods will officially take effect on July 3, 2024 (27/12/1445 H).

Also read: Saudi Tourism Boom: Tourist Spending Surges in Q1