Contributor (291)

Yes, the recipient of a pension can apply for transferring his entitlements from one bank to another for the subsequent months

Yes, it is allowed for the contributor to work for more than one employer, this is known as duplication of insurance.The contribution is calculated based on the total wages paid by employers, under the condition that the total wages does not exceed 45.000 Riyal

Compulsory contributors are:

a. The worker who has had contractual relationship with the employer for carrying out a work primarily within the Kingdom of Saudi Arabia in consideration of a wage, regardless of the nature, form or duration of such relationship or of the amount or kind of the paid wage.

b. The Saudi worker who works abroad for an employer who has a head office within the Kingdom is covered under the Annuities Branch so long as the work relationship is established to have been existing between the worker and the employer.

c. The employee of the State bodies and semi-State bodies who does not benefit from the Civil or Military Retirement Schemes.

d. Occupational Hazards Branch is applied on a mandatory basis to all workers without distinction of sex, nationality or age.

e. Occupational Hazards Branch is applied on a mandatory basis to all Saudis workers without distinction of sex, provided that the worker is under the age of sixty when first applied to the Scheme.

The minimum wage under the Annuities Branch is S.R. 1,500, and S.R. 400 for Occupational Hazard Branch, while the maximum wage is S.R. 45,000

The minimum limit of the monthly pension is no less than SR 1983.75

The contributor can move, more than once, from onescheme to another. He also can apply for aggregation of contribution periods.In this case, last scheme is the one that covers the employment to which the contributor returns

• The contributor should submit the aggregation application form within two years from the date of entry in the last employment.

• The period to be aggregated must not be less than one year.

• The contributor's age must not exceed 59 upon applying for aggregation of contribution periods.

• The pension under the first scheme should not be payable as a result of disability.

If a contributor works for more than one employer at a time, each employer is liable to pay the contribution. The pension is calculated on the basis of the total wages received by the contributor from the employees

The contributions for the Occupational Hazards Branch is fixed at 2% of the contributory wages of the contributor, and is payable by the employer. This rate of contribution may be increased to double the amount for employers who refuse to abide by the instructions issued by the competent authorities in regard of the safety and health of workers

The pensions should be entitled to with effect from the beginning of the month immediately following the date of application for payment

Under the Law, a contributor who returns to employment after receiving a lump sum compensation after 1/1/1422H may request adding his previous service to a new contribution period, provided that he returns the compensation in full within one year from the date of his return.

No, the contributor can voluntarily apply for aggregation of contribution periods

a.The percentage of contributions to the Annuities Branch is 18% of the contributory wage, of which 9% is payable by the employer and 9% is payable by the contributor.

b.The percentage of voluntary contributions is 18% of the income category chosen by the contributor. This percentage is wholly payable by the contributor

He is any worker who have had contractual relationship with an employer for carrying out a work primarily within the Kingdom of Saudi Arabia in consideration of a wage, regardless of the nature, form or duration of such relationship or of the amount or kind of the paid wage. The Saudi worker who works abroad for an employer who has a head office within the Kingdom is covered under the Annuities Branch so long as the work relationship is established to have been existing between the worker and the employer

GOSI bears all the expenses for the transport of the body of the contributor who dies as a result of an employment injury or the deceased recipient of a permanent disability benefit, to his home country along with other related expenses.

The injured person may be moved from the treatment body to his home country if it is discovered that his physical condition is hopeless and, a permanent total disability is existing and there is a need for other's help in his movement and performance of his everyday life activities, in which case the employer will complete the formalities for moving him and pay the expenses thereof. GOSI will refund the cost of the economy class air-ticket of each the injured person and his companion in addition to the costs of such medical facilities as the Primary Medical Board deems necessary for the injured person.

The maximum contributory wage is SR 45,000.  This limit may be raised by the Regulations as revealed by a revision of wage levels to be made from time to time. The minimum contributory wage is SR 400.

The contributor, who moves from an employment covered under the Civil or Military Retirement Scheme to another employment covered under the Social Insurance Scheme, or vise versa, has the right to aggregate his period of contribution under the first scheme to his period of contribution performed under the last scheme.

The Law provides a specific table of monthly income categories from which the voluntary contributor can choose. It begins with S.R. 1,200 up to S.R. 4,5000. Each category is multiplied by 18% and fully beard by the contributor.
For example: If the contributor chooses the category S.R. 5,000 (this category will be considered as the contributory wage) and the due contribution wage to GOSI is 5,000 × 18% = S.R. 900 monthly. 

 The field inspection includes all the fields related to the application of the system and the regulation, especially ensuring that all workers are registered and their real wages.

 If the employer works for two (employers) at the same time, each employer is obliged to pay the contributions on the basis of the remuneration he receives from each of them so that the total wage may not exceed (45000) riyals. Is subject to participation at a rate commensurate with the wage due to him ascribed to the total wage. If we assume that the participant receives a wage from the employer (A) of (30000) riyals and receives at the same time a wage from the employer (B) of (35000) (65000) riyals is reduced to (45000) riyals, and the amount to be performed contributions on the basis of the following:

Employable remuneration (a) = 30000 x 45000/65000 = SR 20769.24           

Employable remuneration (b) = 35000 × 45000/65000 = SAR 24230.80

Contributor's age at the date of system application must be under 59

In emergency cases, the injured person may resort to a licensed private treatment body such as a physician, private medical clinic or private hospital, provided that his condition does not tolerate transporting him to the treatment body already designated by GOSI, and that the injured person or the employer should notify the appropriate office to this effect within three days from the date of resort to the said treatment body. The Office physician will decide whether or not an emergency case exists. The Office Director may, for justifiable reasons, forego the delay in reporting

GOSI has the right to transfer the injured person to the treatment body already designated if his condition allows such transfer.

GOSI will pay the expenses of the treatment of the injured person at the treatment bodies referred to (a physician, private medical clinic or private hospital).

If the required medical treatment is not available at the treatment body entered into contract with GOSI where the injured person is admitted as an inpatient, he will be transferred to such other treatment body where the required treatment is available regardless whether GOSI has or has not entered into contract therewith, in which case GOSI will be responsible for the cost of his treatment at the medical center to which he has been transferred.

a.The percentage of contributions to the Annuities Branch is 18% of the contributory wage, of which 9% is payable by the employer and 9% is payable by the contributor.

b.The percentage of voluntary contributions is 18% of the income category chosen by the contributor. This percentage is wholly payable by the contributor

The following requirement must be met by the Contributor:
· The Contributor shall be a Saudi national.
· Availability of contributions entitling to compensation.
· Contributor shall not be dismissed from work for a reason attributed to him.
· Contributor shall not have income from private work or business.
· Contributor shall not have willingly left work.
· Contributor shall be capable to work.
· Contributor shall not have attained the age of sixty.
· Registration shall be at the MLSD (through the Human Resources Fund).
· Contributor shall be seeking job actively and seriously.
· Contributor shall commit to training as determined by HRDF.

Contributor shall adhere to the instructions and directives issued by HRDF.

Yes, the Law allows any contributing worker, whose compulsory contribution to the Annuities Branch is discontinued, to continue his contribution to that branch in order to complete the qualifying period for entitlement to a pension. This is subject to submitting a request whereby the worker undertakes to pay the prescribed contributions payable by both the employer and the worker (18% of the wage category) in addition to refunding the lump sum compensation if its is paid after 01/01/1422 H. (the date of applying the new Law).

The amount of the daily allowance is assessed at the rate of 100% of the injured person's daily contributory wage for the month preceding the month in which the injury was sustained or for the month in which he entered into employment if the injury was sustained in such month, and no increase in wage granted after the injury was sustained will be regarded for any reason whatsoever.

The amount of daily allowance will be reduced to 75% while the injured person is under treatment at GOSI's expense at a treatment body.

GOSI is responsible for printing these forms. Nevertheless, employers may, by GOSI's approval, print these forms, provided that such forms contain all the basic data with the same format and only for their own use. They are not allowed to be sold.

The month in which the contributor left the employment is not considered as a contribution month unless it is a complete month. However, the incomplete month in which the worker leaves employment is reckoned as complete contribution month, if such reckoning enables the contributor to complete the period qualifying for pension, provided that such month is not taken into account in the computation of the pension. If, for example, a contributor has 119 contribution months and left the employment on 03/01/1422 H., the contribution period will be 120, but when calculating the pension it will be 119.

This provision is not applied to the contributor who applies for an early retirement pension.

According to the Law, any agreement or settlement that violates the Law is invalid; if these agreements affect the rights of beneficiaries or impose extra liabilities on the contributors or their families.

GOSI should notify the beneficiary of all the particulars related to the pension or compensation due to him, the amounts withheld, if any, the net amount due for payment, the agency through which payment will be made, and the conditions under which such payment should continue to be made

Yes, the disability percentages can be combined for repeatedly sustained injuries and the injured person will accordingly be entitled to a monthly benefit or lump sum compensation on the basis of the total of these percentages

Yes, the Medical Board may request making any laboratory tests if the contributor’s condition necessitates such tests in the opinion of the Board. GOSI bears the costs of the medical reports and examinations made within the Kingdom so long as they are made upon the request of the Medical Board. GOSI does not bear the costs of the medical reports and examinations made outside the Kingdom except in such cases as may be approved by the Governor

If the permanent partial disability resulting from an employment injury is less than 50%, the injured person is entitled to a lump sum injury compensation equivalent to 60 times the monthly benefit for permanent partial disability, if he was not over 40 years on the date he  sustained the injury. (Example: If the contributor age is 39 and the disability percentage is 32% and the average wage is SR 1,000, the contributor is entitled to a compensation as follows: 32% × 1000 × 60 = SR 19,200).
If injured person was over 40 years, the said compensation is reduced by a number of monthly benefits equivalent to the number of years in excess of his  40 years of age, provided that the amount of compensation is not less than 36 times the assumed monthly benefit and is not more than SR 165,000. The fractions of a year is considered as one whole year if they are equivalent to or exceeding six months. (Example: If the contributor age is 47 and the disability percentage is 32% and the average wage is SR 1000, the compensation is reduced by 7 monthly benefits as follows: 32% × 1000 × 53 = SR 16,960).

The entitlement to the daily allowance is terminated in the following cases

a. If the injured person regains his capacity for work and is completely cured of his injury. This is determined by a decision of the treatment body or the appropriate Medical Board.

b. If the Primary Medical Board decides that his treatment is completed after his discharge from the hospital and his condition is stabilized with an inherent permanent disability, be it total or partial.

c. If the injured person dies.

The entitlement to daily allowance will not expire with the termination or suspension of employment relationship for any reason during the disability period.

Under medical care, treatment whatsoever should be provided for the injured person according to his physical condition and for as long as his condition requires such treatment until he is fully recovered or his condition is stabilized, as decided by the treatment center. The appropriate office should follow-up the treatment and examine the patient at the treatment center to make the proper decision as to the discontinuity of the need for the treatment as a result of recovery or stabilization of the condition. Treatment includes the following:

a. Treatment of disfiguration resulting from the injury to enable the injured person to continue performance of his work satisfactorily, or because the disfiguration affects his normal social life.

b. Rehabilitation of the injured person and preparing him physically and professionally if his condition so requires.

c. Provision and maintenance of artificial limbs and compensatory appliances and the like and replacement thereof, as needed, within the Kingdom, if their damage or breakage is not due to the injured person's negligence or his failure to observe treatment instructions.

d. Treatment of illness which will result in the injured person's recovery from the employment injury as determined by the treatment body.

e. Treatment of illness that may be caused to the injured person sustaining an employment injury during his admission to the hospital for the treatment of the injury regardless whether such illness is caused by the complications of the injury or results from the method of treatment or caused by infectious virus arising out of his hospitalization for the treatment of his employment injury or due to his exposure to casual incident during his hospitalization for that purpose. The disability resulting from the said illness cases will not be considered as an employment injury unless the illness is caused by complications of the injury.

f. Treatment of deterioration or complication of the injury notwithstanding that the injured person may have not been in an employment covered under the Law at the time of occurrence of the injury.

The Occupational Hazards Branch will discontinue to be applied to contributors who are serving abroad on mission in favor of the employer and to those who are permitted to go on scholarship abroad until the date of their return. The employer will no more pay the contributions for such workers with effect from the beginning of the month immediately following the date of their travel, but he should resume payment of contributions with effect from the beginning of the month of their return to the Kingdom.

The following workers are excepted from the preceding paragraph:

a. The crews of the Saudi aircrafts: They continue to be covered under the Occupational Hazards Branch during their work on board of the aircrafts or during their trip from the airport to their dwelling or vice versa in the countries abroad to which such flights reach.

b. The crews of the Saudi land and sea means of transportation during their work on board of the transportation means or during their trip from the port to their dwelling or vice versa in the countries abroad to which such trips reach.

Yes, the Medical Board may subject the recipient of pension or benefit to a medical examination after he reaches age sixty in non-occupational disability cases, and after the lapse of five years from the allocation of benefit in occupational disability cases, in order to verify whether the beneficiary is still in need of assistance of others in performing his everyday life activities.

The allowance determined for this purpose becomes final by completion by the contributor of sixty five years of age for non-occupational disability and by the lapse of ten years from the date of allocation of benefit for occupational disability.

1.The missing contributor shall be treated the same as the deceased after the lapse of at least six months from his date of missing.

2. If it is established by GOSI through a decisive evidence that such missing has taken place during or by reason of the work and the missing contributor has been covered under the Occupational Hazards Branch, the entitlements of his family members will be determined in accordance with the provisions of the said Branch.

3. If the missing contributor is discovered to be alive, the amounts already paid by GOSI to discharge its obligation will be on credit in respect of the contributor and will be deducted from his entitlements.  If such amounts are in excess of his entitlements, the recovery of the balance will be disregarded.

The age of the contributor is determined by means of his birth certificate or by a certificate duly issued by appropriate authorities. If it is impossible to produce such documents, the age should be determined by one or more physicians to be designated by GOSI. Such age may not be amended after it is recorded, even if other documents showing a different age may appear later. The contributor’s age recorded upon his initial registration with GOSI may only be amended in the following cases:

a. If the amendment is made only for the correction of material errors committed upon recording the age of the contributor at the time of his first registration.

b. If the contributor is registered before the Social Insurance Law and Regulations are put into effect and his age has not been recorded in accordance with the national identification card, passport (for non-Saudis) or decision of the appropriate Medical Board.

In case the date of birth is not specified by day and month, the birth is deemed to have taken place on the first day of the seventh month of the relevant Hijrah or Gregorian year, as per the calendar recorded

1. If the employer refuses to abide by the instructions issued by the appropriate authority in relation to occupational safety and health, or if the insurance inspector fails to verify the same.

2. If the employer insists to refrain from registration of his workers, or a dispute arises in respect of the work relationship, period of service, or wage earned by the worker.

The recipients of a pension and benefits formerly paid are treated as follows:

1.The old age pensions and the non-occupational disability pensions payable to the contributor under the old Law and continue to be payable on the effective date of the new Law were raised to SR 1983.75 if they are less than such amount. The allowance for the need for assistance of others payable to the recipients of non-occupational disability pension is 50% of the pension after it is raised to the minimum limit.

2.The pension shares of the family members payable under the old Law and continue to be payable on the date the new Law is put into effect will be revised by having their deceased breadwinner's pension amount raised to SR 1983.75, if it is less. If, after such raise, the share of any family member is less than SR 396.75 per month, it will be raised to that much, provided that the total amount of the shares of the family members does not exceed SR 1983.75 per month or the average wage taken as a basis for the computation of the breadwinner's pension, whichever is greater.

If the deterioration or complication has occurred while the contributor is in employment insurable under the Occupational Hazards Branch, the benefit is computed on the basis of the average contributory wage for the three months preceding the original injury or the deterioration or complication, whichever average is greater.

If the deterioration or complication has occurred after the termination of the employment relation or while the contributor is in another employment that is uncovered under the Occupational Hazards Branch, the benefit is computed on the basis of the average wage for the three months preceding the original injury.

If the period recorded for either one of the two cases mentioned in the above two paragraphs is less than three months, the average monthly contributory wage for the recorded period is applied.

All Contributors will be automatically registered with pensions branch under unemployment insurance system without any further procedures.

The Beneficiary is entitled to compensation from the beginning of the month following the date on which the contributor meets eligibility conditions, and registered with MLSD represented by HRDF within three months of leaving the work.

Compensation period shall be 12 months. The contributor shall be assisted to find a job, and may, after the end of such period, join other unemployment support programs provided by the State. If the contributor reaches the age of 60 years and is not entitled to a pension, he shall be entitled to continue receiving the compensation until the expiry of the payment period (12 months). However, he shall not be paid for more than 12 months at each time of entitlement.

The minimum limit of the monthly pension is no less than SR 1983.75.

The average monthly wage of the injured person on which the assessment of benefit is based should be one third of the total contributory wages during the three months preceding the month in which the injury was sustained. If his recorded contribution period or periods recorded is or are less than that, his average monthly wage for the recorded period under the Occupational Hazards Branch should be applied

The Occupational Hazards Branch covers the employment injuries occurring within the Kingdom of Saudi Arabia except the following cases:

a. The crews of the Saudi aircrafts: They continue to be covered under the Occupational Hazards Branch while on board or on their way from the airport to their place of residence or vice versa in the countries to which such aircrafts fly outside the Kingdom. If any of the crew members is injured during that time, the employer arranges for his medical treatment in the country in which the injury is sustained, if necessary. GOSI refunds him the treatment expenses in accordance with the prices agreed with the treatment bodies contracted with GOSI in the Kingdom and within the limits determined by the Medical Board as to the requirements and duration of treatment. Should the injured person continue to be in need of the treatment after his return to the Kingdom, the employer moves him to the medical center previously designated by GOSI for the treatment of his workers. GOSI pays the treatment expenses and daily allowances due as provided earlier.

b. The crews of the Saudi land and sea means of transportation: They continue to be covered under the Occupational Hazards Branch during the international trips outside the Kingdom in accordance with such controls.

If the contributor was disabled before his registration, he can be covered under the Law but the non-occupational disability provisions will not be applied to him. Such contributor will be entitled to the pension payment if he attains the age of sixty, ceases the work covered under the Law and has a contribution period of no less than 120 months or 60 months in addition to a credit period completing the period of 120 months. The contributor's family members will be entitled to pension payment in the event of his death. However, if the appropriate Medical Board has discovered that the infirmity or disease has deteriorated after joining the employment which deterioration has resulted in an increase in the percentage of his incapacitation for work, the contributor can receive a non-occupational disability pension

GOSI or the contributor may withdraw the appeal submitted to the Appeal Medical Board at any time before the Board issues its decision

In case the disability percentages are combined for repeatedly sustained injuries and the injured person has accordingly been entitled to a monthly benefit or lump sum compensation, the monthly benefit or lump sum compensation due is computed on the basis of the average contributory wage for the three months preceding the month in which the last injury is sustained. In case such average is found to be lower than that taken as a basis for the computation of the first compensation, the new benefit or compensation is computed on the basis of the higher average wage

The system provides the unemployed contributors with the following:
- Material income.
- Training and qualification for work.
- Help finding job opportunities.
 

Claims for transportation and lodging allowances and decedent's family grant are not accepted after the expiry of one year, and claims for the remaining benefits are not accepted after the expiry of five years from the date on which the entitlement to benefit arises, unless there is an excuse acceptable to GOSI, with due regard to the following rules:

1.The application for payment submitted by one of the beneficiaries will interrupt the prescribed period in respect of the remaining beneficiaries who have not applied for payment of their entitlements.

2. The application submitted for payment of any kind of benefits will be deemed an application for payment of the remaining benefits due. Likewise, the application submitted by a contributor for establishment of his non-occupational disability will be deemed an application for payment of entitlements due under the Law.

3. If the application for payment is submitted as provided for in the preceding two paragraphs with complete address and paying agencies shown therein, and such application is received within the time limit, the entitlement to pension will remain valid until the beneficiary receives his first pension from GOSI notwithstanding that the completion of documents and information may be delayed. However, in case of an application with incomplete documents and information, GOSI will endeavor to contact the beneficiary by using all available means of communication, including advertising in the information media and approaching the employer and the beneficiaries' relatives if known to GOSI, in which case the time limit will restart on and from the date of the first letter issued by GOSI for the completion of the required documents and information.

4. As for the regular pensions due after the payment of the first pension, the prescription provision will be applied to each such pensions, should the beneficiary fail to apply for payment thereof.

5. If the application for payment is submitted to GOSI after the lapse of the specified time limit and GOSI accepts the excuse for delay, GOSI will pay to the beneficiary his full entitlements due with effect from the date on which such entitlement arises. However, if GOSI refuses his excuse, it will pay the monthly pension with effect from the pensionable month in which the application is submitted in addition to the pensions payable for the past twelve months.

- Registration of unemployed contributors.
- Identification and provision of training needs.
- Checking the availability of eligibility requirements for beneficiaries related to training, qualification and job opportunities

- Registration of contributors and subscriptions collection.
- Compensation payment to beneficiaries.
- Manage and invest the account of this system.
- Check the other entitlement conditions for beneficiaries.

There is no higher limit for combination as per the compensations stipulated in Article 19 of Unemployment Insurance Law.

The state and semi-state bodies and state-owned or shared companies, or joint stock companies requires the employer dealing with them to submit a certificate issued by the appropriate GOSI field office evidencing that his firm has been registered with GOSI and that he has discharged all his obligations towards GOSI. Otherwise, he is not subject to the provisions of the Law, upon:

a.    Claiming his due payments in accordance with the rules and procedures followed in the collection of entitlements of the Zakat and Income Department;

b.    Tendering for execution of any works, supply, operation or maintenance contracts;

c.    Applying for amending, reviewing or making an addition to his commercial register;

d.    Applying for receipt of the aid determined for him by the State;

e.    Considering liquidation of his firm or firms;

f.    Applying to the competent authorities for approval of recruiting workers from abroad; or

g.    Applying for a license for any project or for renewal of such license.

The voluntary contribution applicant should submit the following documents:

a. Application for contribution on the approved form.

b. Document showing his engagement in the activity.

c. A copy of the national identification card or family register.

d. Medical report issued by a government treatment body or a private treatment body contracting with GOSI. The medical report should be on Form No. (24/Medical-Board).

1. To accept his application for early retirement prior to reaching age sixty, the voluntarily contributor should produce to GOSI such documents as may prove the discontinuation of his activity or employment on which basis he has participated in the Scheme, such as cancellation of the commercial register or sale or liquidation of the establishment, provided that he has not been engaged in any of the activities or employments covered under the Law.

2. If a voluntarily contributor has received early retirement pension and has, subsequently, resumed any activity or employment that permits the contributor to qualify for voluntary or compulsory coverage before age sixty, his pension will be put on hold even if he has not requested to have a voluntary coverage, in which case the pension will remain on hold until the date on which he leaves such activity or employment or attains sixty years of age and continues to be unwilling to participate in the Scheme again, whichever of the two dates is earlier.

Without prejudice to any more severe penalty stipulated under another law, any person who deliberately submits incorrect data for the benefit of third parties from compensations shall be subject to a fine not exceeding SAR 2,000 riyals, which shall be doubled in case of repetition.

Any person who deliberately submits incorrect data for benefiting from compensations shall be subject to a fine not exceeding the amount of compensations, which unlawfully paid to him, and shall be obliged to pay back the amount of compensation he received.

The Annuities Branch is compulsorily applied to all Saudi workers, provided that the covered worker is under 60 years of age upon his initial coverage under the Law. Where a worker, who has been previously covered by the Social Insurance Law, has re-engaged in an employment subject to the Law at age 60 or over, he should be treated as follows:

a. If he has already been entitled to pension for his previous period of contribution, he is given the choice either to be exempted from contribution for his new period of employment or to continue his contribution, provided that he is under 65 years of age. However, if he has reached the said age on the date of his re-engagement in employment, this Law should not be applicable to him in respect of his subsequent period of employment.

b. If he is not a pensioner, the Law applies to him irrespective of his age on the date of his re-engagement in employment.

The lump sum compensation already paid to the injured person for his first injury will be recovered by deduction from the monthly benefit he is entitled to for the total disability percentages pertaining to the two injuries. Such deduction is made by installments over a number of months equivalent to that on which basis the lump sum compensation has been computed after deducting half the accumulated benefit amount which has not been paid to him yet

If the injured person's need of the assistance of others in the performance of his everyday life activities is established by the appropriate Medical Board, the permanent disability benefit is raised by 50% of the benefit amount as assistance allowance, provided that the amount of such allowance does not exceed SR 3,500

Endorsement of this system has passed through all legislation stages in force for the approval of statutes within the KSA, and no step was skipped. It was submitted to His Royal Highness, studied by the Bureau of Experts, the Supreme Economic Council and the Shura Council. Then, the Royal Decree No. M/18 dated 12/03/1435 AH was issued in this regard. SANED system is not new, but is one of the forms of social insurance systems aimed at social solidarity, from which the beneficiaries benefit such as pensions and occupational hazards. This system also realizes the public interest of the contributor and his family members by protecting him against need, when he is dismissed from work and loses his income by providing alternative sources of income. It also protects society against further cases of poverty and homelessness because of unemployment, and hence it is a kind of social solidarity systems aimed at protecting the individual, family and society and is an addition to other social insurance systems in force such as pensions and occupational hazards.

A- The employer shall be required to register the employee within 15 days of the month following his employment.
B- The employee shall have the right to require its registration within 15 days following the expiry of the employer's deadline for the registration of employment

- Any person who deliberately submits incorrect data to help other party to obtain the compensation shall be charged a penalty not exceeding SAR 2000 and the amount shall be doubled in case of repetition. 

A person who submits incorrect data for the benefit of the compensation shall be charged a penalty not exceeding the value of the unjustly paid compensation as well as recovery of payment made of such compensation.

An employer who does not comply with any of the provisions of the Law and Executive Regulations shall be liable to a penalty not exceeding SAR 10,000 and the amount shall be doubled in case of repetition. The penalty shall be multiplied by the number of joint employees for whom the employer has committed one or more violations.

The Law singled out a special treatment for the contributor who paid more than the wage amount specified in the new Law. The insurance rights are calculated either on the basis of the paid wages whatever the period was, or on the basis of the last wages at the end of the contribution period, whichever is better for the contributor

1. The contributor’s case is presented to the Office physician who may medically examine the contributor or refer him to the appropriate medical body for undergoing the necessary medical examinations before being presented to the Board. The contributor should submit his medical reports to the said Office physician.

2. Where all the medical reports and examinations deemed to be necessary by the Office physician are completed, the Secretary to the Medical Board refers the contributor to the Board on the fixed date for the session and notifies the contributor of the fixed time of the session.

If the disability percentage is amended as a result of the medical re-examination of a recipient of a permanent disability benefit, due regard should be given to the following:

1. If the medical re-examination results in an amendment of the disability percentage and the injured person remains entitled to monthly benefit, the benefit amount is revised according to the new percentage of disability with effect from the first day of the month immediately following the month in which the Medical Board's decision amending the disability percentage is issued. However, if the amendment of the percentage of disability renders the amount of benefit to be reduced, and the decision issued by the Medical Board to this effect is appealed against, the decision is only applied after it becomes final, and the benefit is consequently be reduced with effect from the beginning of the month immediately following the issuance of the relevant decision of the Appeal Medical Board.

2. If the benefit percentage becomes less than 50% as a result of the medical re-examination, payment of the monthly benefit is stopped and a lump sum compensation is determined for him according to the new percentage of the disability.

3. The benefit or lump sum compensation amended as a result of amendment of the disability percentage is computed on the basis of the average monthly wage taken as a basis for the computation of the benefit prior to amending the disability percentage.

4. If the injured person is established to have recovered as a result of the medical re-examination, payment of the benefit is stopped with effect from the first day of the month immediately following the issue of the Medical Board's decision.

Yes, there are periodic checkups during the first five years following disability report and become lifelong over the five years referred to and limit the dates of examination by the medical committees.

If the injured person regains his ability to work and fully recovered from the injury without disability by a medical decision, or his condition stabilized with total or partial disability, and also ends in case of death.

If the applicant for payment is a guardian, custodian or an agent of the recipient of a pension or compensation or of his eligible family members, the applicant should attach to the application for payment:

a. A power of attorney issued by the appropriate authority or a power of attorney signed by two witnesses to be prepared by the proxy before the competent employee and approved by GOSI Office Director. The legal document issued by the appropriate authority should be accepted in respect of payment to a female eligible family member only; and the power of attorney for overseas pension payment should be accepted in respect of pensions payable to Saudis only. The power of attorney should be renewed every three years.

b. The decision appointing him as guardian, custodian or agent of an absentee, as applicable.

c. Bank account number to which the pension will be transferred by GOSI.

In case the injury deteriorates or becomes complicated, the injured person will be entitled to the daily allowance computed on the following basis:

1. If, at the time of deterioration or complication, the injured person is engaged in an employment covered under the Occupational Hazards Branch with the previous or a subsequent employer, the daily allowance is computed on the basis of his contributory wage for the month preceding the occurrence of the said deterioration or complication. However, if it has occurred in the month of his entry in the latest employment, the daily allowance is computed on the basis of the wage for such month.

2. If the injured person is not engaged in an employment at the time of occurrence of the deterioration or complication or is engaged in an employment uncovered under the Occupational Hazards Branch, the daily allowance is computed on the basis of the same wage taken as a basis for the computation of the allowance payable for the original injury.

These program controls have international and valid standards in many countries of the world, and is one of the protection programs deployed in the international community. It was developed in cooperation with the International Labor Organization after studying similar experiences that are applicable in the world. Taking into account views of employers and beneficiaries in Saudi Arabia in order to achieve financial balance between contributions and expenses. Knowing that the Government will ensure payment of compensation and all dues to beneficiaries even if the program expenses exceeded the contributors' contributions. The program aims to achieve benefit to all parties by facilitating the transition period for the employee who lost his/her job for reasons beyond his/her control through payment of financial compensation. The program will also reduce the fear of job instability in the private sector and thus attract more national cadres to the private sector. As with any insurance program, when the sun is bright, people does not feel the need for an umbrella to protect them from the rain and only feel the umbrella importance, when rain falls.

An independent account was created for this system in the General Organization for Social Insurance as a branch of social insurance

SANED system is mandatory applied for all Saudis under the age of 59, who are subject to the pension branch under the social insurance system. If the contributor reaches the age of 60, his or her contribution in SANED shall be ceased.

The beneficiary is entitled to combine this compensation with the following social insurance benefits:

• Lump-sum compensation and single payment compensation due to the beneficiary according to occupational hazards and pensions.
• Proceeds due to the beneficiary according to occupational hazards branch.
• The pension due to the beneficiary as a member of the family according to the pension branch.

According to the following reasons:
- If the beneficiary has a monthly income from work or incapable to work.
- If the beneficiary is no longer a Saudi national.
- If the beneficiary has a special activity.

The Occupational Hazards Branch compulsorily covers all Saudi and non-Saudi workers.

The employers or contributors or the ones who act for them will have the right to appeal against any decision issued by any agency of GOSI in connection with the coverage or non-coverage under the Law; or the determination of the contributory wage. An appeal should be submitted to the agency immediately above that which issued the decision (the Governor of GOSI as regards decision made by the Office Director; and the Board of Directors as regards decision made by the Governor)

The payment of the daily allowance shall not cease by the termination of the employment for any reason during the payment period .

Application shall be submitted Online through the website of General Organization for Social Insurance
www.gosi.gov.sa 

The average wage, on which the benefit is estimated, is the total contributory wages paid during the three months preceding the month in which the injury was sustained.  If the injured person had not worked  for a sufficient period with the employer in whose location the contributor sustained the injury, the average of his monthly contributory wage due during the registration period is computed.

GOSI pays the retirement pension to the family of the contributor who is sentenced for a term of imprisonment no less than three months, though he may be under sixty years of age, so long as he has no less than 120 contribution months and the employer has notified GOSI of the termination of employment of the contributor.

The right to the retirement pension commences at the beginning of the month following the date on which the contributor was imprisoned, or at the beginning of the month following the termination of three-month period during which the contributor remained in prison.

The right to the pension expires at the end of the last day of the month in which the imprisoned contributor is released, with the next months added thereto.

The pension of the contributor's family members is paid to such person as may be designated by the contributor to receive the pension on behalf of the family members. If such designation is not made, GOSI may pay the pension to the person designated by his eligible family members. If they do not designate anyone, the pension is paid to the wife or otherwise to the eldest member.

The retirement pension payable to an imprisoned contributor becomes final, if such contributor attains sixty years of age in the course of his term of imprisonment.

The monthly benefit becomes due from the date on which payment of daily allowance is stopped and permanent disability of the injured person is established. In case the allowance is not due, the benefit becomes payable on and from the first day of the month immediately following the date on which the injured person's condition is finally stabilized with a permanent disability established to be afflicted with by the injured person. Payment is made in advance with effect from either of the said two dates, as applicable.

The case will be established to have been stabilized with a resulted in permanent disability by a decision of the Primary Medical Board after the completion of the treatment and stabilization of the case.

No, leaving the job must be for a reason beyond the employee will.

Yes, if other eligibility conditions are met.

a. If the injured person regains his capacity for work and is completely cured of his injury. This is determined by a decision of the treatment body or the appropriate Medical Board.

b. If the Primary Medical Board decides that his treatment is completed after his discharge from the hospital and his condition is stabilized with an inherent permanent disability, be it total or partial.

c. If the injured person dies.

The contributor afflicted with a non-occupational disability after leaving employment will receive a retirement pension if he has a contribution period of no less than 120 months or at least five years in addition to a credit period completing the period of 120 months. The pension amount will not be increased by 50% (the minimum amount of non-occupational disability pension), but the contributor will receive the minimum pension which SR 1983.75 if the pension is less than this amount

Yes, the case is presented to the Medical Board to determine the relation of the disease with the occupation he was exercising before he left employment, without prejudice to the provisions of the Schedule of the Occupational Diseases. The Medical Board should take into account that the occupation which caused such disease to the contributor is one of the causative occupations shown opposite to the respective diseases in the Schedule of the Occupational Diseases.

The term "contribution year" means the year for which the contribution is payable and which starts from Muharram or January according to the calendar being used.

In case of permanent partial disability (50% - 99% disability), the Saudi injured contributor is entitled to a monthly benefit equivalent to the product of multiplying the percentage of such disability by the permanent total disability benefit to which he might have been entitled had he sustained a total disability. For example, if the partial disability percentage is 55% and the average wage of the Saudi injured contributor is SR 2,000, the partial disability benefit is 55% × 2000 = SR 1100.

Compensation shall not be less than the subsidy amount provided to job seekers, provided that compensation does not exceed the contributor average monthly salary before leaving the job.

The contributor is entitled to a non-occupational disability pension if :

- the disability has occurred before the contributor attains the age of sixty and while the contributor is in employment covered under the Law

-the contributor has a contribution period of no less than 12 consecutive months or 18 non-consecutive months 

- the state of disability is established by the Medical Board within 18 months at the most from the date of termination of the contribution period

The fines for delay will no more be raised once they represent 100% of the contributions on which payment of such fines are payable.

The employer who is cooperative with GOSI may be exempted from all fines for delay for justifiable reasons if the period of delay is not more than ten days.

The Governor may exempt the cooperative employer from payment of the fines for delay to the extent of 50%. The exemption of a higher rate will be subject to a decision to be issued by GOSI Board of Directors

For the purposes of entitlement to benefits, the age is determined in accordance with the Hijrah calendar. However, if the date of birth is indicated in Gregorian, the corresponding date in Hijrah is taken. In case the day and month of birth are not specified, the date of birth is the first day of the seventh month of the Hijrah or Gregorian calendar year of birth, as applicable

Yes, the benefits can be combined within the following limits:

1.The contributor may combine both the benefit and pension within a limit not exceeding 100% whichever is greater between the following two amounts:

a.The average wage taken as a basis for the computation of the occupational disability benefit after it is raised by an assumed annual increment of 7% (seven percent) for each full year falling between the date of establishment of his disability and the date of his retirement provided that it should not exceed age sixty.

b.The average wage taken as basis for the computation of the pension.

2. The contributor or eligible survivors (as applicable) may combine the lump sum compensation payable under the Occupational Hazards Branch with the benefits payable under the Annuities Branch. They may also combine the refund of contributions payable under the Annuities Branch and the benefits due under the Occupational Hazards Branch.

3.The sons and daughters eligible for pension or benefit may combine their entitlement in respect of their father with their entitlement in respect of their mother.

4.The grandsons and granddaughters may combine their monthly benefit or pension payable in respect of the contributor with that payable in respect of their father or mother.

5. The widow may combine the benefit or pension payable in respect of herself with that payable in respect of her husband, and the same provision should be applied to the qualifying widower.

6.The family member who is eligible for pension may combine the monthly pensions with the benefits due to him if he is suffering an earning incapacity.

7.If a person qualifies for more than one pension or a pension and benefit, he will only be paid the higher between them. However, if the higher benefit or pension is less than SR 3,000, he will be paid from the amount of the other benefit or pension such portion as may make up his total amount to reach the said maximum.

8.The widow may combine her benefit or pension share payable in respect of her contributor husband with her work income.

9. If any of the eligible family members, save for the widow of the contributor, works for a wage equivalent to or exceeding his pension or benefit share, his pension or benefit payment will be suspended. Should the amount of pension or benefit exceed the amount of wage, the former will be reduced to match the latter. Nevertheless, he may combine the two within the limit of SR 3,000, and if the wage is less than the said maximum limit, he will be granted the balance to make up such maximum limit.

10.Each family member may combine more than one grant payable in respect of more than one contributor.

The employer should immediately provide the necessary first-aid, carry the injured person, if necessary, to the treatment center already designated for him and entered into contract with GOSI or to the public hospitals or health centers belonging thereto

The period of compensation is 12 months, whether consecutive or interrupted, within 24 months at each time of entitelment 

Yes, the employer may extend the grace period for further one month maximum, if it is discovered that the employer is ready to respond

The contributor who has attained age sixty or over or the contributor who is afflicted with a non-occupational disability, if he fails to qualify for a retirement or disability pension, will be entitled to a lump sum compensation assessed at the rate of 10% of the average contributory wage taken as basis for the computation of the retirement pension, for each month of contribution in the first five years and at the rate of 12% for each month in excess thereof.

The lump sum compensation payable for the period of contribution completed before this Law is put into effect is computed at the rate of 6% of the said average wage for each month of his contribution in the first five years and at the rate of 7% for each month in excess thereof.

In the event of death of a contributor who failed to satisfy the conditions qualifying for survivors’ pension, his family members are entitled to the compensation amount computed in accordance with the provisions of the preceding paragraph, which compensation will wholly be divided among the family members who are eligible for pension in their respective proportions. Where only one eligible member is available, the total amount of compensation will be paid to him.

The term "period of delay" means the number of delayed months starting from the day immediately following the fifteenth day prescribed as the time limit for payment of contributions and ending with the day of actual payment thereof, counting each fraction of a month as a complete month.

The employer must notify the appropriate GOSI office of any new worker who joins employment provided that the notification should be effected within the first fifteen days of the month immediately following the month in which the worker has joined employment. The employer must notify the appropriate GOSI office of any worker who leaves employment provided that the notification should be effected within the first fifteen days of the month immediately following the month in which the worker has left employment. Such notification should be made by completing the approved form.

The worker have the right to notify the appropriate GOSI office of his entry into employment and request for registering him, if the employer fails to do so, provided that such notification is made within the fifteen days immediately following the time limit prescribed for the employer to register his workers. The appropriate office should, in this case, force the employer to register such worker, so long as he has met the requirements of his registration.

Compensation is paid at 60% of the monthly average salaries, which are subject to contribution for each of the first three months and 50% of this average for each additional month.

For the purposes of computation of the monthly wage of the daily-paid contributor, the daily wage is multiplied by 30, and the product so obtained will be the monthly wage subjected to contributory deduction. The monthly wage of the contributor who receives his wage on an hourly basis is computed on the grounds that every 240 paid hours are equivalent to one month.

The monthly wage of the contributor who receives his wage on a piece-work basis, or as percentage of the sales value or on production amount basis should deemed to be the monthly average of the wages he received for his actual period of work in the preceding year.

The contributory wage of a newly-engaged contributor is the average wage of a similar contributor in the same establishment.

According to the Law, there are some differences with regard to qualifying periods for benefit as follows:

1.    A voluntarily contributor with less than 300 months of contribution is not eligible for early retirement pension (before the age of sixty) unless he proves the end of the activity on which he was register with the scheme.

2.    If the voluntarily contributor age was less than 50 years at the beginning of his contribution, the qualifying period for non-occupational disability pension shall not be less than 12 continuous months or 18 non-continuous months. If the contributor started with the scheme after attaining the age of 50 years, the qualifying period for non-occupational disability pension shall not be less than 24 continuous months or 36 non-continuous months, provided that such a disability prevents the contributor permanently or continuously from engaging in any employment activity.

3.    If the contributor registered voluntarily after attaining the age of fifty, the qualifying period for survivor’s pension should be 12 continuous months or 18 non-continuous months. Registering before the age of fifty, the contribution period should be at least three continuous months or six non-continuous months.

The disease is considered an occupational disease if it is included in the Schedule of Occupational Diseases and the occupation causing such disease to the contributor is among the causative occupations listed in the said Schedule. No benefit is payable for the occupational disease if it is established by the Medical Board that such disease in its state has been contracted by the injured person prior to the commencement of his contribution to the Occupational Hazards Branch.

Workers engaged in forests or land farming, crops watching or agricultural machine operating and servicing, or on naval vessels for fishing or transport are not be subject to the Law. This exception is not applied to the following categories of workers who are engaged in such activities:

In the event of the death of a contributor after leaving an employment covered under the Law, his family members will be awarded the retirement pension which is paid with effect from the beginning of the month immediately following date of death, if he has completed 120 months of actual contribution or 60 months in addition to a credit period completing the period of 120 months. The contributor's family members will 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 pays 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.

The following cases are considered as an employment injury:

1. Any accident suffered by the contributor during performance or by reason of work.

2. Any accident suffered by the contributor on his way from his dwelling to his workplace and back, or on his way from his workplace to the place where he usually takes his meal or gives his prayer and back.

3. Accidents suffered by the contributor during movements he makes for the purpose of doing an assignment required by the employer.

4. Disease established to be caused by work.

5. Occupational diseases determined in accordance with the schedule issued by the Board of Directors of GOSI.

The medical care is provided for the injured person by the medical bodies entered into contract with GOSI for this purpose. If the required medical treatment is not available at such places, GOSI should provide it at the public hospitals or its own health centers, according to the available facilities.

GOSI may agree with any private medical center or any of the employers who have special centers for the treatment of and provision of the necessary medical care for their injured workers regardless whether or not such bodies have entered into contract with GOSI.

The contributions, due for the increases in the contributory wage of the worker, are no more paid with effect from the date on which he reaches age fifty except to the extent of 10% of the wage of the previous year. If this provision was not applied to the contributor, the average should not exceed 150% of the contributory wage received at the beginning of the last five years of the contribution period.

The term "basic wage" means the amount received by the contributor, who is compulsorily covered under the Law, in consideration of his work by virtue of a written or unwritten contract regardless of the method of payment or computation of such wage, less the allowances that may be granted according to the work nature, risk or place, or for overtime working hours or for any other reasons no matter under whatever titles they are granted for, and less the grants, annual bonuses and benefits in kind. The commission, the percentage of the sales value, and the percentage of the profit are considered as basic wage notwithstanding that such amount may be paid alone or in addition to a fixed wage.

For entitlement to a retirement pension, the compulsory contributor should cease to be engaged in any work subject to compulsory coverage and the voluntarily contributor should cease to be engaged in any work subject to voluntary or compulsory coverage

The establishments whose activities are discontinued should be dealt with according to the following rules

a.The fines for delay should be ceased to be applied from the date determined for discontinuation of activity. GOSI Governor may exempt the employers from payment of all or part of the fines for delay due from the establishment whose activity is discontinued for the period preceding the said date

b.If the discontinuation of activity is limited to one branch of the employer's business and it is discovered that he has other branches or activities registered with the GOSI, the debit and credit balances should be transferred to the office where the employer's account and activity are still operating within the jurisdiction of such office

c.If the amount payable to GOSI or to the employer is one thousand Saudi Riyals or less, no claim may be made after the lapse of one year from the date of issue of the decision providing for the discontinuity of activity

d.If the amount payable to GOSI or to the employer is more than one thousand Saudi Riyals, no claim may be made after the lapse of seven years the date of issue of the decision providing for the discontinuity of activity

e.The employer's account should be closed after the lapse of the periods prescribed in the preceding two paragraphs (c) and (d), in which case the amounts due to GOSI should be considered as dead debts

f.Contributions in respect of the contributors should be payable as of the date determined for discontinuation of activity, and such date should be the date determined for discontinuation of contribution period of workers in this establishment

The contributor is entitled to the pension payment if he is no more engaged in any activity covered under the Law; has attained the age of sixty; and has a contribution period of no less than 120 months

Entitlement to compensation begins on the first day of the month following the date of entitlement conditions and compensation shall be paid in advance from that date.

The contributor is any person who is subject to insurance, whether male or female. He may be a voluntary or compulsory contributor. 

The raise in the contributory wage recorded for the compulsory contributor at the beginning of each insurance year should not exceed 10% of his wage recorded for the previous insurance year. This should be applicable with effect from the first insurance year immediately following his fiftieth anniversary or from the date on which he attains such age if it happens to be the first day of the insurance year, and it should continue to be applied until his membership in the Scheme is terminated. The wage increase exceeding the said percentage should not be subject to contributory deduction.

As an exception of the provisions of the preceding paragraph, the wage increase exceeding 10% for workers covered under both the Annuities and Occupational Hazards Branches should be recorded in the cases and within the limits as follows:

a. In case of the increase in the wages of the contributors employed in state and semi-state bodies.

b. In case of the increase in the contributory wages specified by the employer for the worker who has resumed employment and has had previous contribution period for which he has received lower contributory wages, so long as the new wage specified by the employer is SR 1,500 or less.

c. If the wage specified by the employer exceeds SR 1,500 and is 10% higher than the last contributory wage received by the worker for his previous employment, a compounded percentage of 4% of the wage per year for his previous employment would be added to his current wage as a prescribed increase multiplied by the number of the whole years falling between the date of leaving previous employment and the date of re-employment. Accordingly, the wage recorded for the worker would be the resultant wage (including the presumed increase) or the wage for his previous employment plus 10% whichever is greater, provided that the recorded wage does not exceed the wage specified by the last employer.

d. The new wage of a worker who resumes membership is only accepted for the worker who is covered under the Occupational Hazards Branch.

The amount that is paid in installments includes the contributions due from the employer not paid by him as of the date of issue of the decision for installments; the fine for delay due in respect of the contributions not paid as of the date of issue of the said decision; and the fines for delay in payment of each installment until it is paid in full, provided that the total amount of such fines does not exceed 100% of the amount of contributions.

The issue of a decision to accept payment by installments does not prejudice the right of the employer to settle the amounts due from him in one payment or to pay the remaining installments before the relevant due times.

a) If the employer has numerous branches of the same activity, the group of branches falling within the jurisdiction of one office should all be treated as one employer. However, each of the branches falling within the jurisdiction of various offices should be treated as an independent employer. The submission of forms and payment of contribution is done for each branch separately, also the payment can be made by the main office of the establishment.

b) If the employer has various activities of which each has its own independent financial entity, each activity is considered as an independent employer, notwithstanding that such activities fall within the jurisdiction of one office. However, the payment can be made by the main office of the establishment, or all branches can be considered as one independent entity when dealing with GOSI. The certificate issued by GOSI will not be granted to the employer unless he is committed to all liabilities.

The rectification of the contributory wages taken as a basis for the payment of contributions to GOSI may not be considered, unless the application for rectification is submitted during the insurance year in which the contribution has been paid or during the first three months of the subsequent year at the most. The amendment of such wages may be considered in case the employer has not fixed the contributory wages in a legal way, even after the above-mentioned period

The Occupational Hazards Regulations specified the dates of reporting work injury as well as the deterioration or complication of injury as follows:

1. The injured person, if his condition so permits, or the one who acts on his behalf, should notify the employer within seven days after the injury’s occurrence, deterioration or complication takes place or the disease is discovered even if his case does not prevent him from continuing to perform his duty. If the injured person fails to report the injury to the employer, he will not be entitled to claim the daily allowance. If he reports the injury after the prescribed period, he will not be entitled to claim the allowance for the period preceding the notification unless failure or delay to notify is caused by justifiable reasons acceptable to the director of the appropriate office.

2. The employer, or the one who acts on his behalf, should notify the appropriate office of the employment injury for which first-aid is insufficient, within three days after he is informed of the injury or takes note of its occurrence. In the event of his delays in reporting the injury, without an acceptable reason left to the discretion of the office director, GOSI will ask him to pay the daily allowance due to the injured person for the period preceding the notification. The receipt of a notification of injury or a copy thereof by the office from the treatment center or a notification of occurrence of injury from any government agency will be deemed as a reporting of the injury.

In case of various employer's activities of which each is founded according to the applicable laws and has a legal entity and independent financial liability, any of the activities is treated as an independent employer (separate establishment) in terms of the starting date of coverage.

In case the activities do not have the previous characteristics, all employer's activities and branches are considered an integrated unit so long as the owner of each activity or branch is the same owner of all other activities or branches.

Under the Social Insurance Law, it is allowed for the contributor who attains the age of sixty and had at least 60 months of contribution, or his family members in case of his death, to apply for complementary period aggregation which will entitle the contributor or his family members to a pension up to a maximum of five years. The contributor or his family, in case of his death, shall pay the shares of the employer and the contributor i.e., 18%. The credited period is paid in full or by installments.

The employer must pay a delay penalty 100% maximum of the contributions period due, that is equivalent to 18% of the monthly wage for the period required to be registered, taking into account the following:

a. In case where the employer deducts the monthly contribution from the worker, kept it for himself and did not pay it to GOSI, he is then must pay a delay fine 2% for each month with no maximum limit.

b. The establishments that take the initiative to apply for registration, and they and their workers have accordingly become covered for the first time and it has been discovered that the establishments and their workers should have been retroactively covered. Such establishments may be exempted from paying all or part of the fines.

The members of the family of the deceased contributor are entitled to benefits if the contributor was a recipient of a permanent total or partial incapacity benefit or died in employment by reason of an employment injury.
The benefit is paid to the eligible family members on equal basis, at the following rates:
•    100% for three members or over.
•    75% for two members.
•    50% for one member.
The share payable within the Kingdom to any family member should not be less than SR 396.75, and that their total shares should, accordingly, not exceed the average wage taken as a basis for the calculation of the deceased contributor’s benefit or SR 1983.75 per month whichever is greater.  If their total shares exceed such amount, their individual shares should be reduced proportionately

The minimum limit of the benefit due in case of total disability is SR 1983.75 The minimum limit of the benefit for the family members is SR 396.75

The pension amount should not exceed 100% of the average wage on which basis the pension was computed. The average wage during the last two years should not exceed 150% of the contributory wage received at the beginning of the last five years of the contribution period. This provision not applicable to the contributor whose pension was increased by 10% for the last five years of his contribution period.

The contributory wage is the total amount prior to making any other deductions for taxes, fees, debts, installments or disciplinary penalties, fines, hours of lateness or days of absence without pay, or the like. Contributions payable by the employer and deductible from the contributor’s wages during the year are paid in full on the basis of the whole contributory wage agreed upon and received in the month of Muharram or January of each year, subject to the calendar adopted by the employer, notwithstanding that the contract of employment may be suspended or that his wage may be insufficient for payment of the contributor’s share of contribution, in which case the contributor’s share duly paid by the employer is regarded as a loan. The contributions payable in respect of the contributor who enters employment during the year (Hijra/Gregorian) are collected on the basis of the full contributory wage for the month of his entry into employment until the end of the insurance year, and they are thereafter be treated on the basis of the first month of the beginning of the insurance year

The term "contributory wage" means the wage of the compulsory contributor according to which the monthly contribution is payable.

Any civil or military government retiree who joins the private sector is compulsory subjected to the Scheme. He may also request a voluntary contribution if he is a tradesman, or conducts, for himself, or in partnership with others a commercial, industrial, agricultural or service activity, or if he is one of the workers who are employed abroad but have no work relationship with an employer who has a head office within the Kingdom, or working in foreign diplomatic missions in the Kingdom and is not compulsorily covered.

 In the previous cases, the contributor must be under the age of sixty when applying to register

Non-occupational disability pension and death pension are calculated with the same equation used to calculate the retirement pension, provided that the pension amount is not less than 50% of the average wage on which the pension was calculated. The contributor must be in employment at the time of disability or death.

Where it is discovered that a worker of the categories excepted from the Scheme coverage has been registered or a non-Saudi worker has been covered under the Annuities Branch or that the registration has involved any violation, the relevant period of contribution so registered will be annulled and the amount of contributions will be refunded and the membership for such period will be considered as non-existing

The contributor should submit the application form directly to the competent institution or its field offices/branches, or through his own employment. He can also send the application form by registered mail to the competent institution.In all cases, the competent institution records must prove that the application had arrived within the time-limit.

 Contributions, fines and other amounts due to GOSI should be paid through SADAD payment system using ATMs, phone-banking or internet-banking. You can also pay such amounts by direct cash deposits in ATMs or by visiting your bank branch. The contributions should be paid within the first fifteen days of the month immediately following the month for which such contributions are due.

GOSI had previously granted one year as of 01/01/1428H. to apply for retroactive registration of any employment periods preceding this date. After the end of this time limit, it is not allowed to apply for retroactive registration unless according to the following provisions:

a) The fulfillment by the employer and the worker of the conditions of compulsory coverage under the Law during the period required to be registered on the basis of documents as may be satisfactory to GOSI.

b) The periods required to be registered, must not exceed the maximum of two years preceding the date of applying for registration.

The transaction will be first approved, then compensation amount will be transferred to the account number registered upon submission. The compensation amount will be transferred at the beginning of every Hijri month, if the eligibility for compensation continues.

The contribution periods must not be supplementary periods entitling to a pension prior to the age of 60 in the last scheme. The contributor must complete the period required by this scheme. This restriction is not applicable when termination of service is of disability, death, dismissal or privatizationreasons

The Law for Portability of Benefits Rights does not allow for entitlements paid to the contributor for a previous employment under the Civil or Military Retirement Scheme to be paid back in order to aggregate the service under the Social Insurance Scheme

If the last scheme was the Civil or Military Retirement Scheme, the pension is calculated using the whole periods in both schemes in accordance with the provisions of the Civil or Military Retirement Scheme and on the basis of the employee's last salary in that scheme.

If the last scheme is the Social Insurance Scheme and it appears that the average wage, which the pension is based on, according to its regulations, exceeds the last wage in the first scheme, multiplied by the defined factor mentioned in Table (5) and its provided rules attached to the Law, the payable pension is calculated for the two periods as follows:

a. A pension is calculated for contribution period served under the Social Insurance Scheme, based on contribution wage determined according to scheme regulations.

b. Another pension is calculated for contribution period served under the first scheme, based on the last wage in that scheme, multiplied by the defined factor mentioned in Table (5) and its provided rules attached to the Law.This pension is added to the allocated pension in paragraph (a) above, and the total is paid to the contributor as one pension.

The pension is calculated by the following:

a. The contribution period completed under the old Law "prior to 01/01/1422 H." (the average wage during the last two years of the whole contribution period × the former contribution period ÷ 600) is added to the dependants allowance (20% for three family members – 15% for two family members – 10% for one family member).

b. The contribution period completed under the new Law "after 01/01/1422 H." (the average wage during the last two years of the whole contribution period × the subsequent contribution period ÷ 480).

c. The outcome of the two paragraphs is the pension due to the contributor.

If the employer fails to pay the contributions and fines for delay within the 15 days following the due payment month, GOSI may take the measures for issuance of a court order for attachment and compulsory execution on the funds of the employer after giving him a notice to this effect and a grace period of 15 days for the payment of contributions and fines for delay. GOSI will thereafter effect such measures or otherwise give him such further grace period as it may determine in the light of the employer's circumstances.

The measures for attachments and compulsory execution are taken through the official authorities after obtaining a court order for compulsory execution on funds owned by or due to the employer from any government or non-government agency, or individual.

The employer's appeal does not interrupt the grace period he is given for payment. In the event that he wishes to suspend application of the fines for delay, he will pay on account all amounts claimed. If his appeal is accepted, such payments will be refunded to him and if it is not accepted, he will be deemed to have paid his dues within the limits of the payment he has already made.

The contributions due to GOSI as well as fines for delay will not be waived by lapse of time for any reason whatsoever. The amounts due to GOSI will not be forfeited by the death of employer and his heirs must be jointly liable to pay such amounts, each within the limits of his inherited share. Nor should such amounts, be forfeited by dissolution, liquidation or merger of the establishment with another establishment, or by division or by ownership transfer by will, sale or relinquishment or by conversion to another legal form or by any other action. Both the old and the new employers are jointly liable to pay all the amounts falling due to GOSI before any of the aforementioned actions takes place; but any amounts falling due thereafter are solely payable by the new employer.

The earnings subjected to deduction of contributions are the basic wage, and housing allowance paid in cash according to the amount agreed to between the employer and the contributor, or housing of which the contributory value is equivalent to a two-month basic salary.

The term "social insurance number" means the permanent number of the contributor’s registration with GOSI

The contributor whose period of contribution has been terminated prior to putting the new Law into effect and has not received the lawfully payable benefit for such period and is not qualified for pension under the old Law will be entitled to receive a pension subject to the following conditions and provisions:

1.The contributor, who has completed a contribution period of at least 120 months and has attained or exceeded age sixty before or after the Law is put into effect, is entitled to claim payment of a retirement pension.

2. The contributor who has completed a contribution period of at least 300 months before the Law is put into effect, may claim payment of early retirement pension.

3.The female contributor who has completed a contribution period of at least 120 months and has attained or exceeded age fifty five before or after the Law is put into effect may claim payment of retirement pension.

4.The contributor who is engaged in arduous and unhealthy works and has completed a contribution period of at least 120 months and has left employment before the Law is put into effect, may claim payment of retirement pensions.

5. If the contributor is sentenced for three or more months and has a contribution period of 120 months, his family members may receive the retirement pension notwithstanding that the term of sentence is issued before or after the effective date of the new Law.

6. The contributor who has attained age sixty or over before or after the Law is put into effect (01/01/1422 H.) and has a contribution period of 60 or more months but less than 120 months, (or his family members in the event of his death) may claim to have credit periods.

7. The contributor who is afflicted with a non-occupational disability or dies before or after the new Law is put into effect (01/01/1422 H.), or his family members, as applicable, will receive the respective pension payable under the old Law. However, in case of failure to satisfy the conditions qualifying for the said pension, he or they, as applicable, will be paid the pension payable to the contributor who is afflicted with a non-occupational disability or dies after leaving employment by inclusion of the credit period.

According to the following reasons:
- Death 
- If the beneficiary reaches the age of sixty and is entitled to a pension in accordance with the provisions of the insurance system.
- Stay outside the Kingdom for more than 60 days -connected or intermittent- during the period of the compensation payment.
- If beneficiary refused three suitable work offers -consecutive or sporadic- from HRDF or any other party assigned by HRDF.
- If the beneficiary did not enroll or succeed in a training course, including distance training for four periods –consecutive or sporadic– without any excuse accepted by HRDF.
- If the beneficiary does not attend on the dates determined by HRDF for interviews four times -consecutive or sporadic- without any excuse accepted by HRDF.
- In case of not accessing the electronic profile in the database of job applicants at least once a week for six consecutive weeks or different without an excuse accepted by HRDF.
- In case of not attending at HRDF or any agency authorized by HRDF to obtain qualification, training or employment services for four consecutive or sporadic periods without an excuse accepted by HRDF.
- If the beneficiary is not serious in the search for work or qualification as determined by HRDF.