The contributor is entitled to a retirement pension provided that he meets the following conditions: 
1. Ceasing to carry on any work subject to the scheme.
2. Attaining the age of sixty or over. 
3. Having a contribution period no less than 120 months, or at least 60 months provided that the contributor adds the complementary period to reach 120 months. 

The retirement pension is calculated as follows: 
a.The pension for the period prior to 01/01/1422 H.; (average wage over the last two years of the full contribution period × number of previous months of contribution ÷ 600). In case there are dependents, a percentage is added on the pension amounting 10% for one dependent, 15% for two dependents, and 20% for three or more dependents. 
b.The pension for the period after 01/01/1422 H.; (average wage over the last two years of the full contribution period × number of future months of contribution ÷ 480) and the result of the two paragraphs (a & b) is the total pension to the contributor. If the total pension is less than S.R. 1,983.75, it will be raised to this amount. 

Example of retirement pension
A contributor having a contribution period of 120 months, started in 01/01/1416 H. and left employment on 30/12/1425 H. He reached the age of 60 years in 01/07/1426 H., and the average wage of his service in the last two years from the time of his contribution is S.R. 10,000. What is the amount of his pension? 

 

Whenever a contributor is deemed unable to earn a wage equaling at least one third of his previous wage due to his health condition, and this disability continues for a period more than six months, he is entitled to receive a disability pension provided that he meets the following conditions: 
1. The disability must have occurred before the contributor reaches the age of sixty and while in employment. 
2. The contribution must have no less than 12 consecutive months or 18 inconsecutive months. 
3. Determine the disability by the competent medical boards within 18 months as a maximum from the date of discontinuing contribution. 

- The non-occupational disability pension is calculated the same way that the retirement pension is calculated, provided that the amount is no less than S.R. 1983.75 or 50% of the average wage over the last two years, whichever is greater. 
- The disabled contributor undergoes periodic medical examinations to make sure that the disability is continuing until he reaches the age of sixty. Then the pension becomes permanent. 
- The non-occupational disability pension will increase 50% if the competent medical board decides that the contributor needs the assistance of other, provided that the allowance does not exceed the amount of S.R. 3,500. The contributor undergoes medical examinations until he reaches the age of sixty five, then the allowance become permanent. 
- If the non-occupational disability occurred after the contributor leaves employment covered under the scheme, he is entitled to a retirement pension without waiting for attaining the age of sixty years, provided that he has no less than 120 months, or at least 60 months provided that the contributor adds the complementary period to reach 120 months.

Example of non-occupational disability: 
A contributor having a period of contribution reaching 12 consecutive months, and he suffered from a non-occupational disability while in employment. His average wage is 10,000.SR What is the amount of his pension? 

 

Average wages during the last two years of the entire subscription period (X) 50%
Average wage	X 50%	If he is in need of a third aid, he shall be granted 50% of the pension
10,000 SR	Pension: = 5,000 SR	In case of need of third aid: Total pension 5,000 + 2500 = 7,500 SR

 

Some categories of contributors may receive a pension before attaining the age of sixty if they apply for pension payment.

 

They are: 
1. The contributor who has an actual contribution period no less than 300 months and left employment covered under the scheme.  
2. The contributor who is engaged in arduous or unhealthy occupations; reached the age of fifty five years or more; left employment covered under the scheme; had a contribution period no less than 120 months; and proved that he actually practiced this type of work for the past five years of his period of contribution. 
3.The contributor who is sentenced to imprisonment for three months or more, had a contribution period no less than 120 months and his contribution discontinued, his family members are entitled to receive a pension. 
4.The contributor who is missing or absent is treated as a contributor who is deceased and his family members are entitled to receive a pension. 
5.The contributor who sustained a non-occupational disability, or died. 
The minimum pension in the paragraphs First, Second, Third and Fourth is 1983.75. SR

In the case of the return of a retirement pensioner to an employment covered under the scheme, he is treated as follows: 
1. If his age on the date of his return to employment is less than sixty, he will be mandatory subject to the scheme and payment of his pension will discontinue. 
2. If his age on the date of return to employment is between sixty and sixty five, he will be given a choice between exemption from contribution for the duration of his recent employment or continuing payment of his contribution. In case he choose to pay his contribution, if the wage he is receiving from employment is less than the average wage on which basis his pension was calculated or less than his previous wage which entered into the calculation of this average (whichever is greater), he will be paid the difference from his pension. 
3. If his age on the date of return to employment is 65 years and over, he will not be subject to the scheme and the payment of his pension will continue. 

For the non-occupational disability pensioner who returns to employment subject to the scheme before reaching the age of sixty, he should be presented to the competent medical board. If it decides that he is cured, his pension will discontinue. However, if the board decides that he is still considered disabled, he will be treated with the same treatment of the retirement pensioner returning to employment covered under the scheme.

If the necessary conditions for payment of pension are not met, the contributor, or his family members, in the event of his death, is entitled to receive a lump sum compensation, which is calculated as follows: 
1. For the period prior to 01/01/1422 H., the compensation is calculated by 6% of the average wage over the last two years for each month of contribution in the first sixty months, and by 7% for each month over that. 
2. The period after that date, the compensation is calculated by 10% of the above mentioned average for each month of contribution in the first sixty months, and by 12% for each month over that. The amount of compensation is distributed equally among family members. 

Cases of paying lump sum compensation before reaching the age of sixty or sustaining a non-occupational disability: 
1. If the contributor joins an employment subject to the Civil and Military Retirement Scheme, and has less than one year of contribution in the social insurance scheme. 
2. If the contributor is a woman. 
3. If the contributor is among those engaged in arduous or unhealthy occupations. 
4. If the contributor had been sentenced to imprisonment for five years or more. 
5. If the contributor's Saudi nationality was revoked.

Repay lump sum compensation:
The contributor who returns to employment covered under the scheme after receiving a lump sum compensation pursuant to the provisions of the new law may repay the compensation in exchange for re-calculating the preceding period into his contribution, provided that the amount of compensation is paid in full within one year from the date of his return to employment.