The new Social Insurance Law in Saudi Arabia officially came into effect on Tuesday, July 1, 2025, bringing a series of significant reforms for new civil employees in both the public and private sectors. Issued by Royal Decree on July 2, 2024, the law is applicable only to individuals with no prior contributions under the existing Civil Pension or Social Insurance Law.
Who Does the New Law Apply To?
According to the General Organization for Social Insurance (GOSI), the law targets new entrants into the workforce who have not previously subscribed to any retirement system in the Kingdom. Current GOSI subscribers will retain their existing benefits without changes.
Key Features of the New Law
Gradual Increase in Retirement Age
The amended law stipulates a gradual rise in the statutory retirement age, which will now range between 58 and 65 years for new subscribers. This change aims to sustain the pension system and align with modern workforce dynamics.
Unified Insurance Coverage
By unifying public and private sector provisions under a single insurance framework, the law ensures flexible job transfers without affecting insurance entitlements. This move expands insurance coverage to a broader range of employees.
Subscription Rate Adjustments
New contributors will see a gradual increase in pension branch subscription rates, rising 0.5% annually from the second to the fifth year of implementation. The total contribution rate will eventually rise from 9% to 11%, shared between the employer and the employee.
Maternity Benefits for Female Workers
Effective July 1, GOSI will begin offering maternity compensation for three months to female subscribers—both Saudis and expatriates—upon childbirth. This is part of a broader commitment to inclusive social support.
Employer Responsibilities
GOSI emphasized that employers must pay insurance contributions on time to protect the rights of employees under the new system. Timely compliance ensures uninterrupted access to entitlements and benefits.
How to Learn More
GOSI encourages all subscribers and employers to review full details about the new Social Insurance Law through its official website or via the GOSI mobile application.
