The new Social Insurance Law's provisions came into effect on Tuesday, July 1, 2024, after being published by Royal Decree on July 2, 2024. This was announced by the General Organization for Social Insurance (GOSI), which also pointed out that the law only applies to newly hired government servants without any prior contribution periods under the present Social Insurance or government Pension Laws who are joining the public or private sectors.
As per the modified law, the retirement age will be gradually raised, but the benefits for current GOSI subscribers would remain unchanged. According to the group, the mandatory retirement age for those impacted by the changes will fall between 58 and 65 years old.
By consolidating insurance provisions under a single law, this law will help to broaden the scope of insurance coverage to include more categories and achieve flexibility in job transfers between the public and private sectors without affecting subscribers' insurance rights, according to the organization.
The new rules, which will be implemented for new Social Insurance System members, call for a gradual increase in pension branch subscription rates of 0.5 percent per year beginning in the second year of the system's existence and continuing until the fifth year, for a total increase of 2 percent. As a result, the employer and subscriber pay an 11 percent subscription fee rather than a 9 percent one.
The law emphasized that in order to protect the rights of workers who are subject to the system, companies must pledge to pay subscriptions on the designated dates.
Beginning on Tuesday, July 1, the maternity benefit will also be introduced. Maternity compensation is provided by the GOSI to female subscribers, Saudi or non-Saudi, for three months after giving birth. The GOSI advised all of its clients—subscribers and employers alike—to go over all the information pertaining to these clauses using the GOSI app or the awareness platform on the company's website.
