Beneficiary (26)

According to Paragraph (8) of Article (2) of the Social Insurance Law, the following are the family members entitled to pension:

1.Widow: The wife of the contributor until the date of his death.

2.Widower: The one whose contributing wife died and is suffering a loss of earning capacity until he is no more incapacitated. The widower is considered as disabled if he attains 60 and does not work.

3.Sons of the deceased contributor: The sons who are under 21 years of age until they complete such age. This age is extended to 26 years if they are continuing their studies in educational or vocational institution. No age limit is set so long as they are unable to engage in any occupation by reason of chronic disease or infirmity.

4.Daughters of the contributor until they marry.

5.The grandsons and granddaughters whose father died during the lifetime of the contributor and were supported by the contributor until the date of his death, subject to the same conditions as prescribed in respect of the sons and daughters.

6.The father of the contributor who was supported by the contributor himself at the time of his death, provided that the father is unable to work or over sixty years of age and not working.

7.The mother of the contributor who was supported by the contributor himself at the time of his death.

8.The grandfather of the contributor who was supported by the contributor himself at the time of his death, subject to the same conditions required in respect of the father.

9.The grandmother who was supported by the contributor himself at the time of his death.

10.The brothers and sisters, subject to the same conditions required in respect of the sons and daughters, provided that they were supported by the contributor at the time of his death.

The Pension is the amount periodically paid under the Annuities Branch. The Benefit is the amount periodically paid under the Occupational Hazards Branch. The two terms have the same meaning

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.

In case the incapacitated son, brother or grandson is no more incapacitated, the benefit payable to him should be discontinued and his share should be distributed to the other eligible family members. If he is re-incapacitated, however, the suspended payment of his share should be returned to him.  In case such share has already been wholly or partially redistributed among certain eligible survivors, their shares should be reduced by the same amount.

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.

Originally, the entitlement is the contributor’s right or his family members. He is not allowed to waive his rights nor it is allowed to seize his dues, except in accordance with the provisions of the Labor and Workmen Law.

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.

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 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