The Saudi General Organization for Social Insurance announced the details of the new retirement system, andMinimum early retirement age.
The Corporation reported that the minimum early retirement age for subscribers to the new system is 55 calendar years.
The Foundation announced that one of the conditions for obtaining a retirement pension is that the retiree must have 30 years of service, with the retiree ceasing to work subject to the provisions of the system if he wishes to obtain the retirement pension.
She explained that the retirement age in the new system is 65 Gregorian years, provided that it is possible to retire only 10 years before this age. She pointed out that the minimum retirement pension will reach 4,000 riyals (about 1,067 dollars) for those whose contribution period has reached 40 years, and in the event that the contribution period is short. Moreover, this limit will be reduced for each year (12) subscription months and each month in proportion to that, provided that it is not less than 2000 riyals.
Regarding the mechanism for calculating the retirement pension, “Insurance” stated that the (average wage or salary) will be calculated at the highest wages or salaries subject to subscription for 180 months of subscription periods in the new system, then the average wage is multiplied by 2.25%, with the result multiplied by the number of months of subscription. Then divide by 12.
In the event of requesting early retirement, 3% will be deducted from the participant for each year in which the period of his contribution is less than 40 years.
“Insurance” indicated that the contribution deduction rate would be raised by 0.5% for each year during the next four years, so that the deduction rate from the employee’s salary would increase from 9% to 11%, in addition to the “Sand” deduction of 0.75%, bringing the total deduction from the employee’s salary to 11.75% per month. .
It is noteworthy that every 1 dollar is equivalent to 3.75 Saudi riyals.
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