SECTION II: BENEFITS PAYABLE TO CONTRIBUTORS AND METHOD OF COMPUTATION THEREOF
SECTION II
BENEFITS PAYABLE TO CONTRIBUTORS AND METHOD OF COMPUTATION THEREOF
ARTICLE (4)
1. For entitlement to retirement pension in all cases, in the application of the provisions of Article 38(1) of the Law, the compulsorily contributor shall have ceased to be engaged in any work subject to compulsory coverage and the voluntarily contributor shall have ceased to be engaged in any work subject to voluntary or compulsory coverage.
2. For the purposes of application of the provisions of paragraph 1(c) of Article (38) of the Law, the female contributor who attains fifty five years of age or over shall have the right to file a claim for payment of retirement pension if she has completed at least 120 (one hundred twenty) contribution months.
3. For the purposes of application of the provisions of paragraph 1(d) of Article (38) of the Law, the contributors who are engaged in arduous or unhealthy occupations listed hereunder may retire at age fifty five or over and receive retirement pension so long as each has completed at least 120 (one hundred twenty) contribution months:
a. The mining workers who work inside the mines.
b. The quarry workers who work in the breaking, exploding and packing of rocks and raw materials.
c. The workers who work in casting of metal such as iron and steel and do their job in front of furnace with high temperature.
d. The divers whose regular work requires diving deep into the sea.
To benefit from the provisions of this Article, the contributor shall have continued his actual engagement in the said works throughout the last five years of his contribution period, and this shall be established by the inspection report approved by the Office Director.
4. With due regard to the provisions of paragraph (1) of this Article, the pension due under paragraphs 1(b), 1(c) and 1(d) of Article (38) of the Law shall be paid on the first day of the month immediately following the date of filing the claim for payment of pension if such claim is filed before attaining age sixty.
ARTICLE (5)
1. For the purposes of application of paragraph 1(e) of Article (38) of the Law, the Organization shall pay the retirement pension to the family of the contributor who is sentenced for a term of imprisonment on temporary basis, though he may be under sixty years of age, so long as he has completed the period qualifying for entitlement to pension and satisfied the following conditions:
a. The contributor shall have been sentenced by virtue of a judicial decision or an order issued by the authorized person for a term of imprisonment of not less than three months, or if the contributor remains in prison for that period.
b. The employer shall have notified the Organization of the termination of employment of the contributor.
2. The right to the pension referred to in paragraph (1) of this Article shall commence at the beginning of the month following the date on which the contributor whom have been sentenced by virtue of a judicial decision or an order issued by the authorized person was imprisoned, and at the beginning of the month following the termination of three-month period during which the contributor remained in prison. However, the right to the pension shall expire at the end of the last day of the month, in which the imprisoned contributor is released, with the next months added thereto. The appropriate office shall coordinate with the prison administration to know the actual date of entry and release of the contributor.
3. The pension of the contributor family members provided for in paragraph (8) of Article (2) of the Law shall be paid to such person as may be designated by the contributor to receive the pension on behalf of the family members. Designation of such person shall be made by a statement of the contributor duly approved by the administration of the prison in which he is detained. If such designation is not made, the Organization may pay the pension to the person designated by his eligible family members. If they do not designate anyone, the pension shall be paid to the wife (or to the husband of the imprisoned female contributor) or otherwise to the eldest member.
4. The retirement pension payable to an imprisoned contributor by virtue of the provisions of paragraph 1(e) of Article (38) of the Law shall become final, if such contributor attains sixty years of age in the course of his term of imprisonment. If, prior to reaching that age, he dies or is afflicted with a non-occupational disability of the kind provided for in Article (39) of the Law, his pension shall be re-computed, and he shall be treated the same as the one who dies or is afflicted with a disability after he leaves insurable employment prior to reaching age sixty.
5. Where the imprisoned contributor is released prior to reaching sixty years of age and the time limit prescribed in paragraph (2) of this Article has expired, he shall be treated the same as any other contributor whose contribution period ends before attaining age sixty.
6. With due regard to the provisions of the preceding paragraphs, the pension payable to the imprisoned contributor shall be subject to all the provisions of the Law and these Regulations, particularly in relation to the conditions of continuity of entitlement to pension.
ARTICLE (6)
For the purposes of application of the provisions of paragraph (2) of Article (38) of the Law, the contributor who has completed 60 (sixty) or more but less than 120 (one hundred twenty) contribution months and is no more engaged in any activity covered under the Law and has filed a claim for payment of his pension at age sixty or over, may claim to be credited for an additional period to the extent required to qualify him for entitlement to pension, provided that the period to be credited for shall not exceed five years, and that he shall pay the total contributions to the Annuities Branch at the rate of 18% for each month of the credited period computed on the basis of the average monthly contributory wage taken as a basis for the computation of the pension. The contributor shall pay the said amount of contributions either in one payment or by deducting it from the accumulated pension due from the date of his retirement and paying the balance in monthly installments at the rate of 25% of the payable monthly pension until the whole due amount is settled. In the event of death of the contributor prior to settlement of the whole amount, the Organization's title to the balance of the installments shall be forfeited.
ARTICLE (7)
For the purposes of application of paragraph 3(a) of Article (38) of the Law, due regard shall be given to the following:
a. The contribution period for which the pension is assessed shall mean the total contribution months divided by 12 months.
b. The contribution period completed with effect from the date of implementation of the new Law shall be included in the computation of the pension at the rate of one fortieth of the average monthly contributory wage in the last two years of his contribution period.
c. The contribution period completed under the old Law shall be included in the computation of the pension at the rate of one fiftieth of the said average provided for in the paragraph (b), above. There shall be added to the pension payable for such period the family allowance provided for in paragraph (3) of Article (38) of the old Law in accordance with the relevant provisions applicable thereto.
d. As an exception of the provisions of paragraph (c) above, the said family allowance shall not be payable in respect of those to whom the provisions of the said paragraph apply, if the total amount of the pension and the allowance is equivalent to or less than the minimum prescribed for the retirement pension or non-occupational disability pension, in which case the pension shall be raised to the said minimum and the allowance shall be cancelled. However, where the said total amount exceeds the prescribed minimum, the pensioner shall continue to receive this total without having the pension raised to the prescribed minimum. In case, the amount of the allowance has been revised as a result of a change in the number of the dependants which revision renders the total amount to be equivalent to or less than the prescribed minimum, the pension shall be raised to such minimum and the allowance shall be cancelled. In the event of the death of the pensioner, the pension distributable among the family members shall not be less than the prescribed minimum.
ARTICLE (8)
1. For the purposes of application of paragraph 3(b) of Article (38) of the Law, due regard shall be given to the following:
a. The average monthly wage on which basis the pension is computed shall be one twenty fourth of the total contributory wages on the basis of which the contributions due have been paid during the last twenty four contribution months, with due regard to the provisions of the next paragraph.
b. The average wage taken as a basis for the computation of the pension shall not exceed 150% of the contributory wage at the beginning of the last five years of the contribution period, save for the contributor whose contributory wage has continued to be subject to the graduation provided for in paragraph (2) of Article (19) of the Law for at least five contribution years. If, as a result of application of this provision, the average wage taken as a basis for the computation of pension is less than the actual average wage in the last two contribution years by 10% or over, a separate pension shall be assessed for the excluded wage differences and such pension shall be added to the original pension in accordance with such details and examples as may be issued by Governor's decision.
2.1 For the purposes of application of the provisions of paragraph 3(d) of Article (38) of the Law, due regard shall be given to the following:
a. The provisions of the said paragraph shall be applied to the cases where the contributor's average monthly wage in the last two years of his contribution period is less than his average wage in any former year by 10% or over, due to an actual reduction in this wage or in consequence of the application of the provision of paragraph 3(c) of Article (38) of the Law.
b. The maximum number of periods which may be determined as separate periods shall be only two contribution periods including the final contribution period, provided that either periods shall not be less than two years and that the monthly average wage in the last two years of the first separate period shall be more than 10% higher than the monthly average wage for the final separate period.
c. In case the conditions provided for in the preceding paragraph are met by more than one contribution period, the contribution period immediately preceding the final separate period shall be elected.
d. If the contributor’s monthly average wage in the last two years of each separate period is less than his wage in any year preceding such period by 10% or over, the difference between them shall be taken for each year in which such difference arises and the monthly average thereof shall be produced. Then a separate pension shall be computed in respect of such differences and their respective period, which pension shall be added to the original pension of that period.
e. The provisions of paragraph 1(b) of this Article shall be applied to the average wage taken as a basis for the computation of the pension for each separate period.
f. A pension shall be computed for each separate contribution period, with due regard to the provisions of paragraphs (a), (b), (c), (d), and (e), above, and the ultimate pension shall be equivalent to the total amount of all pensions due for those periods.
2.2 In case the conditions provided for in the two paragraphs 2.1(a) and 2.1(b), above, are not satisfied by a contribution period, the provisions of paragraph 2.1.d, above shall be applied to that period.
3. For the purposes of application of paragraph 4(a) of Article (38) of the Law, the pensioner may not combine the wage he earns when he resumes an insurable work with a portion of his pension in the manner provided for in the said paragraph, unless he is sixty years old or is a recipient of a non-occupational disability pension referred to in paragraph (7) of Article (39) of the Law.
ARTICLE (9)
1. For the purposes of application of the provisions of paragraph (1) of Article (39) of the Law, the contributor shall be entitled to a non-occupational disability pension, if the disability has occurred while the contributor is in employment covered under the Law, the twelve or eighteen-month period is immediately following the completion of the formalities for his actual registration with the Organization, and the state of disability is established by the Medical Board within eighteen months at the most from the date of termination of the contribution period in addition to the other statutory conditions. If no decision establishing the disability is issued by the Medical Board within such period for the contributor’s own reason, he shall be treated as the contributor who is afflicted with a non-occupational disability after he leaves the covered employment provided for in paragraph (2) of Article (39) of the Law in addition to the next paragraph.
2. For the purposes of application of the provisions of paragraph (2) of Article (39) of the Law, the case of the contributor who is afflicted with a non-occupational disability after he left employment covered under the Law shall be presented to the appropriate Medical Board to consider the existence of the non-occupational disability required for entitlement to the retirement pension prior to attaining age sixty. The case may be presented to the Board at any time so long as the contributor’s right to claim has not elapsed by the expiry of the time limits provided for in Article (57) of the Law and the other statutory conditions for entitlement to such pension are fulfilled.
3. The pension payable to the contributor who is afflicted with a non-occupational disability after he leaves the employment covered under the Law as well as the one who is treated as such shall be deemed as a retirement pension to which all the relevant provisions shall be applied except that it is paid before reaching age sixty and due regard shall be given to the following:
a. He shall not be entitled to the said pension for the period preceding the date of leaving the employment covered under the Law.
b. The minimum-related provisions provided for in paragraph (3) of Article (39) of the Law as well as the provisions of paragraph (4) of the said Article shall not be applied to him.
c. This pensioner shall be subject to such periodical medical tests as may be determined by the Medical Boards until he attains sixty years of age.
The provisions of paragraphs (a) and (b), above, shall be applied to cases of entitlement to survivors pension as a result of the death of their contributing breadwinner after leaving his employment covered under the Law which cases are provided for in paragraph (2) of Article (12) of these Regulations.
ARTICLE (10)
For the purposes of application of the provisions of paragraph (4) of Article (39) of the Law, an allowance of 50% (fifty percent) shall be added to the non-occupational disability pension of the contributor if he is established by the Medical Board to be in need of the assistance of others in the performance of his everyday life activities, provided that such allowance shall not exceed the sum of SR 3,500 (three thousand five hundred Saudi Riyals). Entitlement to the allowance shall commence with effect from the date of entitlement to the disability pension or from the beginning of the month immediately following the month in which the Board decides his entitlement to the allowance, if the Board's decision is issued later. The Medical Board shall determine the continuity of the need of the assistance of others. The allowance shall become final if the need thereof continues to exist until the contributor attains sixty five years of age.
ARTICLE (11)
For the purposes of application of the provisions of paragraph 6(a) and (7) of Article (39) of the Law, due regard shall be given to the following:
1. The previous wage shall mean the contributor’s full contributory wage due for the last month of his contribution period or his full contributory wage preceding the date of establishment of his non-occupational disability whichever is greater.
2. The contributor shall not be deemed disabled if his disability is caused by suffering an infirmity or contracting a disease prior to the date of his actual registration with the Organization unless the appropriate Medical Board has discovered that the infirmity or disease has, after that date, deteriorated, which deterioration has resulted in a drop in the percentage of his incapacitation for work.
3. If a recipient of a non-occupational disability pension resumed work with any wage, his case shall be presented to the appropriate Medical Boards for consideration. However, if the appropriate Medical Board considers that the recipient of a non-occupational disability pension is cured, his pension shall be suspended, and if it considers that the work which he resumed is not harmful to his health, he shall be treated the same as the recipient of a retirement pension who resumed work under the Law in accordance with the provisions of paragraph (4) of Article (38) of the Law. However, if the Medical Board considers that the work which the contributor resumed may affect his health, he shall be asked to leave the work and if he failed to comply, his full pension shall be suspended.
ARTICLE (12)
For the purposes of application of the provisions of paragraph (1) of Article (40) of the Law, due regard shall be given to the following:
1. In the event of the death of a compulsorily contributor while he is in an employment covered under the Law, irrespective of his age, and the contributor has had a contribution period of not less than three consecutive months or six non-consecutive months following the completion of formalities for his actual registration with the Organization, his family members shall be entitled to heirs pension with effect from the beginning of the month immediately following the date of death. Such pension shall be computed in the same method as the non-occupational disability pension amount is computed.
2. In the event of the death of a contributor after leaving an employment covered under the Law, his family members shall be awarded the retirement pension which shall be paid with effect from the beginning of the month immediately following date of death, if he has completed ten years of actual contribution or has completed the same by adding the credited period provided for in paragraph (2) of Article (38) of the Law. In the latter case, the amount of the contributions due for the credited period shall be deducted from the accumulated pension payable to the deceased contributor prior to having it distributed between the family members; then one quarter of the pension share of each eligible family member will be deducted until the due amount is fully settled.
ARTICLE (13)
1. For the purposes of application of the provisions of paragraph (1) of Article (41) of the Law, the entitlement to the lump sum compensation at age sixty shall arise if the contributor has left the employment covered under the Law.
2. For the purposes of application of the provisions of paragraph (2) of Article (41) of the Law, the amount of compensation due shall wholly be divided among the family members on equal basis. Where only one eligible member is available, the total amount of compensation shall be paid to him.
3. For the purposes of application of the provisions of paragraph 3(a) of Article (41) of the Law, the lump sum compensation may be paid to the contributor who moves to another employment covered under the Civil or Military Retirement Scheme without having to wait until he attains sixty years of age, provided that his period of contribution under the Social Insurance Scheme is less than one year.
4. For the purposes of application of the provisions of paragraph 3(c) of Article (41) of the Law, the contributor may claim payment of the lump sum compensation without waiting until he attains sixty years of age in the following cases in addition to the cases provided for in paragraph (3) of the said Article:
a. If he is engaged in arduous or unhealthy occupations in accordance with the provisions and conditions in paragraph (3) of Article (4) of these Regulations.
b. If he is sentenced by virtue of a judicial decision or an order issued by the authorized person for a term of imprisonment of five years or over, in which case the amount of compensation shall be paid to him in accordance with the provisions of paragraph (3) of Article (5) of these Regulations.
c. If the contributor is deprived of his Saudi citizenship.
ARTICLE (14)
1. For the purposes of application of the provisions of paragraph (4) of Article (41) of the Law, the contributor may, in any of the following two cases, repay the lump sum compensation he has already received for a former contribution period in order to be credited to his contribution account:
a. The contributor who has been in an employment covered under the Law on the date the Law is put into effect and has received lump sum compensation under the old Law, may express his wish to re-include the relevant contribution period provided that he repays the compensation amount in full in one payment within one year from that date. However, if such re-inclusion does not render the contributor qualified for pension when his contribution to the Scheme is terminated thereafter, the re-included period shall be deleted and the contributor shall be refunded the compensation previously repaid by him.
b. The contributor who subsequently resumes employment and has already received lump sum compensation under the new Law may express his wish to re-include the relevant period, provided that he repays the compensation amount in full in one payment within one year with effect from the date of his re-employment.
2. If the contributor, who is entitled to the lump sum compensation, resumes an employment covered under the Law prior to payment of the said compensation, payment of such compensation shall not be effective, and the period of his new employment shall be added to his previous period of contribution in the computation of the total period of contribution, and his entitlement shall, upon termination of his contribution, be readjusted on this basis.
ARTICLE (15)
1. For the purposes of application of the provisions of paragraph (1) of Article (54) of the Law, if the contributor willfully injures himself or commits a criminal act causing contingency but remains alive, he shall not be entitled to the benefits provided for in the Law, but if he dies as a result thereof, his family members shall be entitled to the benefits payable under the Law.
2. For the purposes of application of the provisions of paragraph (1) of Article (55) of the Law, the pensions payable during the term of imprisonment of the contributor shall be paid to his family members in accordance with the provisions of paragraph (3) of Article (5) of these Regulations.
ARTICLE (16)
For the purposes of application of the provisions of Article (58) of the Law, due regard shall be given to the following:
1. There shall be submitted an official document satisfactory to the Organization, evidencing the missing of the contributor in an incident that is almost fatal within or outside the Kingdom.
2. Where the Organization is not satisfied that the incident causing the missing of the contributor has not been almost fatal, any of his family members or whom it may concern may submit to the competent court a request for issuance of an order whereby the missing person is considered as dead in accordance with the provisions of the Shariah Law, in which case the Organization shall be liable to execute the ensuing order.
3. The provisions of this Article shall also be applied to the case of missing of any of the family members who are eligible for pension, if the same is intended to re-distribute his share among the remaining eligible members.
4. The absent contributor shall be treated as the missing contributor if a judicial decision on his absence is issued.
ARTICLE (17)
1. For the purposes of application of the provisions of Article (66) of the Law, if a contributor covered under the old Law continues to be covered until the date on which the new Law is put into effect and his contributory wage has dropped as a result of excluding some allowances from the contributory wage elements pursuant to the provision of paragraph 1(a) of Article (19) of the Law or consequent to restriction to the maximum contributory wage provided for in paragraph 1(b) of the said Article, and the total of his two contribution periods under the two Laws reaches the level required to give him the right to receive a pension, his pension shall be adjusted by one of the following two methods, whichever is better for him:
a. The pension payable for the total of his former and subsequent contribution periods shall be computed in accordance with the provisions of paragraphs (b), (c) and (d) of Article (7) of these Regulations on the basis of the average contributory wage in the last two years of his contribution period.
b. A separate pension shall be awarded for his contribution period completed under the old Law regardless how small it is. This pension shall be computed in accordance with the provisions of paragraphs (c) and (d) of Article (7) of these Regulations and on the basis of the average contributory wage in the last two years of the said period or the average wage for the said period if less than two years. There shall be added another separate pension for the subsequent contribution period completed under the new Law regardless how small it is, and such pension shall be computed on the basis of the average contributory wage in the last two years of this period or the average wage for the entire said period if it is less than two years, with due regard to the provision of paragraph (b) of Article (7) of these Regulations.
Provided always, the number of periods to be deemed as separate shall not be more than two periods of which the first is the one completed before the effective date of the new Law and the second is the one completed thereafter.
2. If the contributor referred to in the preceding paragraph is entitled to a lump sum compensation under paragraph (1) of Article (41) of the Law, such compensation shall, with due regard to the rates provided for in the said paragraph of the Law, be computed in either one of the following two methods whichever is better for him:
a. To compute the compensation for both periods on the basis of the average monthly contributory wage in the last two years of the last period.
To compute the compensation for each period separately on the basis of the average monthly contributory wage in the last two years of the respective period or the average wage in the entire period if it is less than two years.