Due to several inquiries about the cost of living allowance, GOSI has issued an explanatory statement on how to calculate the cost of living allowance paid to retirees of the Social Insurance Scheme.
In the explanatory statement, GOSI Assistant Governor Mr. Fahad bin Abdulrahman Al-Howaimel said that GOSI calculates the cost of living allowance, recently approved by the Cabinet and paid to retirees of the Social Insurance Scheme, on the basis of 5% for the first year, 10% for the second year and 15% for the third year only of the basic pension or benefit. The basis of calculation does not include "the allowance for the need for assistance of others" or the "allowance for dependants". However, the cost of living allowance is paid to the family members on the basis of the death pension or benefit due to them.
"The cost of living allowance is calculated neither for lump sum compensations paid under the Annuities Branch or the Occupational Hazards Branch nor for the marriage and death grants," Al-Howaimel added.
"The cost of living allowance is calculated in accordance with the rules approved by GOSI Board of Directors," Al-Howaimel concluded.