Ean Libya, 14 October 2024: The Saudi General Organisation for Social Insurance announced the details of the new retirement system and the minimum age for early retirement.

The organisation has stated that the minimum age for early retirement for subscribers to the new system is 55 years old.

The organisation has announced that one of the conditions for obtaining a retirement pension is having 30 years of service for the retiree, with their cessation of work subject to the provisions of the system when they wish to receive the retirement pension.

It has been explained that the retirement age in the new system is 65 years old, but retirement can be taken ten years before this age.

It has been pointed out that the minimum retirement pension will be 4,000 riyals for those whose subscription period is 40 years.

If the subscription period is less than that, this minimum will be reduced for each 12 months of subscription and each month proportionately, provided that it does not fall below 2,000 riyals.

Regarding the mechanism for calculating the retirement pension, the Saudi General Organisation for Social Insurance has explained that the average wage or salary will be calculated based on the highest wages or salaries subject to subscription for 180 months of the subscription periods in the new system.

Then, the average wage is multiplied by 2.25%, and the result is multiplied by the number of subscription months, then divided by twelve.

In the case of early retirement, the subscriber will be deducted 3% for each year that their subscription period falls short of 40 years.

The Saudi General Organisation for Social Insurance has also pointed out an increase in the subscription deduction rate by 0.5% for each year during the next four years, raising the deduction rate from the employee’s salary from 9% to 11%, in addition to a ‘sand’ deduction of 0.75%, bringing the total deduction from the employee’s salary to 11.75% monthly.

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