COUNCIL OF MINISTERS DECISION

NO.199 DATED 17/08/1421 H (13/11/2000 G)

THE COUNCIL OF MINISTERS,

Having reviewed the letter received from the Presidency Bureau of the Council of
Ministers under No. 7/6103/R dated 05/05/1420 H enclosing the letter of H.E the
Minister of Labour and Social Affairs who is also the Chairman of the Board of
Directors of the General Organization for Social Insurance No. 331/1/Kh dated
28/02/1416 H. concerning the draft Social Inusrance Law;

Having reviewed the Social Insurance Law issued under Royal Decree No, M/22
dated 06/09/1389 H;

Having reviewed the minutes prepared by the Experts Commission under No, 85
dated 30/03/1418 H;

Having reviewed the recommendation of the General Committee of the Council of

Ministers No. 350 dated 09/07/1420 H;

Having reviewed the minutes prepared by the Experts Commission No. 281 dated
07/09/1420 H;

Having considered the Decision of the Consultative Council No. 45/66 dated
23/02/1420 H;

Having reviewed the two recommendations of the General Committee of the

Council of Ministers No. 273 dated 19/07/1421 H. and No.301 dated 10/08/1421
H,

DECIDES AS FOLLOWS :

First: The Social Insurance Law is hereby approved in the form attached hereto
A draft Royal Decree to that effect, copy attached hereto, has been prepared.

Second: A committee is hereby formed under the chairmanship of H.R.H the

Minister of Interior and Chairman of the Manpower Council and membership of
H.E the Minister of Civil Service, the Minister of Finance and National Economy,
the Minister of Labour and Social Affairs, the Minister of Commerce, the Minister
of Industry and Electricity and the State Minister and Cabinet Member Dr. Musaad
Al-Eban, for the study of the issue of co-ordination between the Civil and Military
Retirement Schemes and the Social Insurance Scheme, with a view to reach to
firm rules for the exchange of benefits between the said Schemes. Such
Committee shall submit its recommendations within a period not exceeding one
year.

Third: The Retirement Pension Fund and the General Organization for Social
Insurance shall urgently prepare the actuarial valuations required for the study
referred to in item (Second) above and present them to the said Committee
within a period not exceeding six months.

President
Of the Council of Ministers
• Chapter I : SOCIAL INSURANCE BRANCHES AND DEFINITIONS
• Chapter II : SCOPE OF APPLICATION
• Chapter III : ADMINISTRATIVE ORGANIZATION
• Chapter IV : REVENUES AND FINANCIAL ORGANIZATION
• Chapter V :SECTION 1: BENEFITS UNDER THE OCCUPATIONAL
HAZARDS BRANCH / SECTION 2: BENEFITS UNDER THE ANNUITIES
BRANCH
• Chapter VI: GENERAL PROVISIONS
• Chapter VII : TRANSITIONAL AND CONCLUDING PROVISIONS
Chapter I : SOCIAL INSURANCE BRANCHES AND DEFINITIONS

ARTICLE (1)

1. This Law shall be called “Social Insurance Law” and shall constitute the
following insurance branches :

a. Occupational Hazards Branch which provides benefits in cases of employment

injuries
b. Annuities Branch which provides benefits in cases of non-occupational
disability, old-age, and death.

2. The insurance branches constituted hereunder may be extended to provide

other kinds of benefits in accordance with the statutory methods.

ARTICLE (2)

Unless otherwise is provided for herein, the terms used herein shall have the
meanings explained below:

1.The term “Minister” means the Minister of Labour and Social Affairs.

2.The term “Insurance” means social insurance provided for herein.

3.The term “Organization” means the General Organization for Social Insurance.

4.The term “Regulation or Regulations” means the decisions that embrace

organizational rules or general implemental provisions in conformity with this
Law.

5.The term “benefits” means the benefits afforded by each of the branches of this
Law notwithstanding that they may be cash benefits such as pensions, benefits or
allowances or services such as treatment services and whatever is related
thereto.

6.The term “employer” means any natural person or legal entity (to whom this
Law applies) employing one or more workers satisfying the conditions provided
for herein.

7.The term “contributor” means any person who is subject to insurance, be he a

man or woman, thus the use thereof in a masculine form in any provision shall
include the woman insofar as it is appropriate. The contributor is described as a
compulsory contributor if he is one of the workers referred to in paragraph (3) of
Article (4) and as a voluntary contributor if he is among the categories provided
for in paragraph (4) of Article (4) and paragraph (1) of Article (8).
8.The term “family members” means the following members:

a. The widow or widower of the deceased, and the widower is the one whose
contributing wife died and is suffering a loss of earning capacity until he is no
more incapacitated.

b. The sons who are under twenty one years of age until they complete such age
and the daughters until they marry. The maximum age limit prescribed for the
sons shall be extended until they complete twenty six full years if they are
continuing their studies in educational or vocational institution, and no age limit is
set so long as they are unable to engage in any occupation by reason of chronic
disease or infirmity.

c. 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.

d. The parents of the deceased contributor who were supported by him at the
time of his death, provided that the father is unable to work, or otherwise is over
sixty years of age and not working.

e. The grandfather and grandmother, subject to the same conditions required in

respect of the parents.

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

9.The term “employment injury or injuries” means the accidents occurring during
or by reason of employment and the occupational diseases laid down in Article
(27)

ARTICLE (3)

1. The Minister may issue rules that permit the employers, individually or
collectively, to set up private welfare institution for the purpose of granting their
workers and their workers’ families, if need be, additional benefits over and above
those provided for in this Law, provided that such rules shall include the
conditions for establishment of institution and the method of management and
liquidation thereof.

2.The provisions of this Law shall not prejudice such other social insurance cash
benefits as may have already been payable to the contributor or his family
members by private institutions

[ menu ] [ top ]
Chapter II : SCOPE OF APPLICATION

ARTICLE (4)

With due regard to the provisions of Articles (5) and (6), the Occupational
Hazards Branch and the Annuities Branch shall apply according to the following
details :
1.The Occupational Hazards Branch shall be compulsorily applied to all workers
without any discrimination as to sex, nationality or age.

2.The Annuities Branch shall be compulsorily applied to all Saudi workers without
any discrimination as to sex, provided that the covered worker shall be 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 shall be treated as follows:

a. If he has already been entitled to pension for his previous period of

contribution, he shall be 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 shall not be applicable to him in
respect of his subsequent period of employment.

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

3.For the purposes of application of the provisions of the paragraphs (1) and (2)
of this Article, the worker shall have been employed by virtue of an employment
contract for the benefit of one or more employers regardless of the duration,
nature or form of the contract or the amount or kind of the wage paid, provided
that his employment is mainly performed within the Kingdom, or that the worker
is a Saudi national if he works abroad for an employer whose head office is within
the Kingdom, as laid down by the Regulations.

4.The Annuities Branch shall voluntarily apply to the Saudi citizens who are
engaged in liberal professions or who conduct, for themselves or in partnership
with others, a commercial, industrial, agricultural or service activity, or
tradesmen, or Saudi nationals employed abroad and have no employment
relation with an employer whose head office is within the Kingdom, in accordance
with the provisions of the Regulations. The Occupational Hazards Branch may, by
decision of the Minister on the approval of the Board of Director, be applied to the
said categories as provided for by the decision.

5.Without prejudice to the provisions of Article (5), and by decision of the

Minister on the approval of the Board of Directors, special measures may be
taken to extend coverage under any of the insurance branches to citizens outside
the categories provided for in this Article.

6.The provisions of each of the insurance branches that will eventually be

instituted shall prescribe its scope of coverage.

ARTICLE (5)

1.Excepted from coverage by the insurance provided for in the Law are:

a. Civil servants and members of the armed forces and the police, who are
covered under the retirement pension plans for the civil servants and military
personnel.

b. Foreign employees working in foreign international or diplomatic or military

missions

c. Workers employed in agricultural, forestry, or pastoral works, and save for

these subject to the Labour and Workmen Law and those employed in state
bodies and semi-state bodies as well as those employed in private establishments
and companies which satisfy the criteria and controls prescribed by the
Regulations.

d. Sea-men including the sea-fishermen, save for those subject to the Labour and
Workmen Law, as well as those employed in the marine establishments and
companies and fishing companies which satisfy the criteria and controls
prescribed by the Regulations.

e. Domestic servants.

f. Foreign workers who come to the Kingdom to engage in works which usually
take no more than three months to complete, and the Regulations shall prescribe
the works intended for the purposes of this provision.

g. Artisans (workers working in their homes)

h. Employer’s family members who work in the family firms where no workers
other than them are employed.

Nevertheless, any of those referred to in sub-paragraphs (g) and (h) above, may
request to benefit form the provisions of this Law as provided by paragraph (4) of
Article (4).

2.Some or all of the categories mentioned in sub-paragraphs (c), (d) and (e) of
the preceding paragraph may be covered under the Law, by decision of the
Minister, on the approval of the Board of Directors and in accordance with the
provisions of Article (6).

ARTICLE (6)

The actual application of the social insurance branches provided for in Article (1)
shall take effect in stages to be determined by a decision of the Minister on the
recommendation of the Board of Directors.

ARTICLE (7)

1.The employers employing workers shall be liable to apply the Law and the
Regulations thereof, and the application shall take effect on the day the
conditions provided for in this Law and its Regulations and in the Ministerial
Decisions made pursuant to the provisions of Article (6) are satisfied.

2.The Regulations shall prescribe the method of registration with the Organization
of the employers and the contributors covered by this Law.

ARTICLE (8)

1. Any contributing worker whose contribution to the Annuities Branch is

discontinued and who is no more satisfying the conditions provided for herein,
shall have the right to continue his contribution to the said branch, provided that
he submits, within the time limit prescribed by the Regulations, a request
whereby he undertakes to pay the prescribed contributions payable by both the
employer and the worker for insurance under the Annuities Branch.

2. If the period of contribution referred to in the preceding paragraph is

completed, and the contributor or his family members (as appropriate) have not
qualified for pension, his contribution shall be terminated and the contributions
paid for that period shall be refunded to him or to his family.

3. The contributor under the provisions of paragraph (1) shall, in respect of the
total of his two periods of contribution, be subject to the same rules for the
computation of the period of contribution and for the entitlement and calculation
of the benefits which apply to all contributors.

4. The Regulations shall set forth the rules and procedures for the implementation
of this Article.
 Chapter III : ADMINISTRATIVE ORGANIZATION
ARTICLE (9)

1. The Organization shall administer the social insurance and implement the
provisions of this Law. It shall be a legal entity, enjoy administrative and financial
independence and be guaranteed and controlled by the State.

2.The administrative agencies of the Organization shall comprise Head Office in

Riyadh and offices to be established, as needed, throughout the Kingdom by
decisions of the Board of Directors.

3.The Organization may, by decision of the Board of Directors, establish or

participate in establishment of companies or acquire private investment units on
full ownership basis and shall manage its investments in accordance with the
same business practice of management of similar investments in private sector
and in conformity with the Regulations to be issued by the Board of Directors of
the Organization.

ARTICLE (10)

1. The Organization’s Board of Directors shall be composed of eleven members

including Chairman and the Vice-Chairman, as follows:

- Minister of Labour and Social Affairs, Chairman

- Governor of the Organization, Vice Chairman

- Three members representing Ministry of Labour and Social Affairs, Ministry of

Finance and National Economy and Ministry of Health, and each such members
shall be nominated by the Minister concerned provided that the nominated
member shall not be lower than grade 14.

- Three members form among the contributors to the scheme who are highly
qualified in their work.

- Three members from among the employers.

2. The Board members, excluding the Chairman and the Vice Chairman, shall be
appointed by resolution of the Council of Ministers on the recommendation of the
Minister, and their term of membership shall be three years only.

3. The Board shall hold at least one ordinary meeting every three months upon
convocation by the Chairman or Vice Chairman. The Board may also be convoked
for a meeting upon a request made by at least seven members. Decisions shall be
made by majority vote in the presence of at lest seven members. In case of equal
voting, the opinion of the side comprising the Chairman shall be taken, provided
that in all cases, the number of members voting in favour of the decision shall not
be less than four.

4. The Board may call experts or specialists to attend its meetings without having
the right to vote.

5. Remunerations for the Chairman, Vice-Chairman, and the rest of the members
shall be fixed by the resolution of the Council of Ministers on the recommendation
of the Minister and paid from the Organization’s budget.
6. The Board shall lay down its own rules of procedures in conformity with the
provisions of this Law.

7. The member of the Board of Directors shall be disqualified in any of the

following cases :

a. If he does not attend four consecutive Board meetings without an acceptable

excuse, or it becomes impossible for him to attend to the basic duties of his office
for six consecutive months.

b. If he is sentenced to a penalty for a financial crime or for a crime affecting

honor or public interest.

c. If any of the employer’s representatives is declared bankrupt.

In all cases, the membership disqualification shall be announced by decision of

the Chairman of the Board of Directors.

ARTICLE (11)

The decisions which are made by the Board of Directors under the chairmanship
of the Vice-Chairman and require, by virtue of the Law, approval by the Minister,
shall be referred to the Minister within eight days from the date of issue thereof.
If, within fifteen days from the date of such referral, such decisions are not
approved by him, they shall become effective. The Minister may, within the said
period, remand to the Board of Directors decisions which are not approved by
him, showing the reasons for disapproval thereof, provided that the remanded
decisions shall be placed on the agenda of the following Board meeting, and such
decisions shall become effective if at least seven of the present members vote in
favour thereof.

ARTICLE (12)

The Board of Directors shall have the following prerogatives:

1. Supervising the implementation of the Law and Regulations, achieving the

objectives of the Law and to improving the Organization’s work progress.

2. Approving the organizing and implementing regulations.

3. Proposing the application stages in accordance with the provisions of Article (6)
hereof and the institution of new insurance branches.

4. Approving establishment of the Offices of the Organization

5. Approving the accounting plan, the balance sheet, the financial report and the
final account of the Organization.

6. Announcing the Organization’s annual financial position and investment

activities.

7. Devising and approving the general plan for the investment of the
Organization’s funds and approving the fields of investments which it deems
useful for the employment of such funds within the framework of the said plan.

8. Expressing its opinion regarding any matter referred to it by the Board

Chairman or Vice-Chairman.
9. Performing such other duties as may be entrusted to it by virtue of the
provisions of this Law or the Regulations issued in implementation of the
provisions hereof or any other legislative provision.

10. Accepting donations and bequests.

ARTICLE (13)

1. The affairs of the Organization shall be managed by a Governor who shall be

designated by Royal Decree on the recommendation of the Minister.

2. The Governor shall:

a. represent the Organization before the court and other agencies and may
authorize such other persons as he may wish to do so;

b. implement the decisions of the Board of Directors and shall directly report to
such Board; and

c. manage the interests of the Organization and supervise its employees, handle
its administrative and financial operations which fall within his jurisdiction and
ensure the proper progress of its business.

3. The Governor may delegate some of his prerogatives to his assistance or other
employees of the Organization.

ARTICLE (14)

1. There shall be formed a Control Committee composed of a Chairman and two

members. The Chairman of this Committee shall be designated by the Minister.
One of the two members shall be designated by the Minister of Finance and
National Economy, and the other shall be designated by the Governor of the
Saudi Arabian Monetary Agency. The term of office of the Committee shall be two
years and may not be renewed for more than two consecutive times.

2. The Committee shall perform the following functions:

a. To control the works of the financial management of the Organization

b. To ensure the proper procedures followed in the investment of the funds of the
Organization.

c. To express the opinion in respect of the Organization’s annual budget and

account prior to presentation thereof to the Board of Directors and to ascertain
the statutory and genuine contents thereof.

d. To examine the Financial and accounting system and the accounting plan and
propose development thereof.

e. To evaluate the internal auditing system of the Organization.

f. To verify the correctness of the accounting books.

g. To exercise such other prerogatives as may be entrusted to it by the Minister.

3. The Committee shall, at the end of the sixth month of each fiscal year, prepare
a report showing its remarks on the Organization’s activities in the last six
months and shall, at the end of the fiscal year, prepare an annual report. The
Committee’s report shall be presented at once to the Minister, Board of Directors
and Governor of the Organization.

4. For the proper performance of its functions, the Committee shall be assisted by
a number of specialized employees who will be attached to it by the Governor in
response to the request of the Chairman. Such employees shall remain
responsible solely before the Chairman throughout the period of their assignment
with the Committee.

5. The Committee shall draw up its own rules of procedures.

6. The remunerations of the Committee members shall be fixed by the Minister.

ARTICLE (15)

1.The Board of Directors shall, on the recommendation of the Governor,

determine the organizational structure of the Organization, including the
numbers, categories, grades and salaries of the employees.

2.The Board shall issue employment regulations that determine the conditions
governing the appointment, discipline and termination of the services of the
employees of the Organization and set forth their rights and duties.

ARTICLE (16)

1.The Minister shall exercise the state control over the Organization and may, in
addition to his powers and prerogatives provided for in this Law and its
Regulations, request the Organization to give him all necessary information and
to place at his disposal such books, files and documents as he may deem
necessary to exercise this control.

2.To achieve the same purposes, the Organization shall, at the end of each year,
submit to the Minister a report on the works performed in that year.
 Chapter IV : REVENUES AND FINANCIAL ORGANIZATION

ARTICLE (17)

The revenues of the Organization shall consist of:

1. the contributions of the employers and contributors provided for in Article (18),
the contributions imposed to finance other branches of insurance in accordance
with the provisions of Articles (1) and (4) of this Law, and the contributions paid
in accordance with the provisions of paragraph (2) of Article (38);

2. the state annual subsidy allocated in the State general budget, as needed;

3. the additional amount provided for in paragraph (5) of Article (19) hereof in
respect of delay in payment of contributions;

4. the returns of investment of the Organization’s funds;

5. the donations and bequests made to the Organization; and

6. such other revenues as may be allocated for the Organization by virtue of the
provision of another law or regulations.

ARTICLE (18)

1. The contributions for the Occupational Hazards Branch shall be fixed at 2%

(two percent) of the contributory wages of the contributor and shall be 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 procedures for the
implementation of this last provision shall be prescribed by the Regulations. As
for the contributors of other categories mentioned in paragraphs (4) and (5) of
Article (4), each of such contributors shall pay the fixed contribution.

2. a. The contribution for the Annuities Branch in respect of the contributing

workers provided for in paragraph (2) of Article (4) shall be fixed at 18%
(eighteen percent) of the contributory wage, of which 9% (nine percent) shall be
payable by the employer and 9% (nine percent) shall be payable by the
contributor, with due regard to the provisions of Article (65).

2.b. The contribution for the Annuities Branch, in respect of the contributors of
the categories mentioned in paragraph (4) of Article (4) shall be fixed at 18%
(eighteen percent) of the assumed wage chosen by the contributor in accordance
with the provisions of Section 3 of Chapter V, which contribution shall wholly be
payable by the contributor.

3. The rate of contribution provided for in the preceding two paragraphs may be
modified by a decision of the Council of Ministers issued on the recommendation
of the Minister after the Board of Directors shall have expressed a motivated
opinion based on an actuarial study.

ARTICLE (19)

1.a.The contributions provided for in paragraphs (1) and 2(a) of the preceding
Article shall be computed on the basis of the basic monthly wage received by the
contributor. The Regulations shall prescribe the basic wage and may, for the
purposes of computation of contributions, add to the wage any of the allowances
and benefits in kind due to the contributor. The regulations shall also prescribe
the method of determining the contributory wages of the contributing workers
whose wages are determined by piece, as well as the method of computation of
the amount of contributions payable in favour of the apprentice worker.

1.b. The maximum contributory wage shall be SR 45,000 (forty five thousand
Saudi Riyals) per month. This limit may be raised by the Regulations as revealed
by a revision of wage levels to be made from time to time.

2. The contributions due under the provisions of paragraph 1 (a) for the increases
in the contributory wage of the worker shall no more be paid with effect from the
date on which he reaches age fifty except to the extent of the percentage
prescribed by the Regulations, with due regard to the wage levels and the various
increases therein.

3. The method of computation of contributions shall be determined by the

Regulations. The Regulations may provide for the contributions to be computed
on the basis of the wages referred to in paragraph 1 (a) and actually received
month by month including any reduction or increase therein or to be computed on
monthly basis without being affected by sudden reduction in such wage, or to be
computed for all months of the insurance year on the basis of the contributory
wages agreed for the first month of the year. The Regulations may also provide
for contributions to be payable on lump-sum basis or according to the wage
graduation in respect of certain categories of contributors. In all cases, benefits
shall be computed on the basis of the wages used for the purposes of determining
the due amount of contributions.

4. The employer shall pay to the Organization the full amount of contributions
due from him and from his contributing worker, and the employer alone shall be
responsible towards the Organization for the payment of such contributions. In
return, the employer may deduct from the wage of his contributing worker the
contributions due from the worker every time he pays him his wage. Should the
employer fail to withhold such contributions upon payment of the wages, he may
not withhold such contributions in any form thereafter.

5. Contributions shall be paid to the Organization within the first fifteen days of
the month immediately following that for which the contributions are due. If
payment is not affected within this period, the employer shall pay a fine for delay
at the rate of 2% (two percent) of the unpaid contributions for each month or
fraction of a month of delay. The Regulations shall prescribe the maximum fines
for delay and the cases in which payment of all or part of the fines may be
exempted.

6. All state and semi-state bodies and state-owned or shared companies, or joint
stock companies shall require the employer dealing with them to submit a
certificate issued by the appropriate insurance office evidencing that his firm has
been registered with the Organization and that he has discharged all his
obligations towards the Organization or otherwise that he is not subject to the
provisions of this 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 of the works, supply, operation or maintenance

contracts ;
c. applying for amending his commercial register, reviewing it or making an
addition to the date thereof;

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.

7. The Regulations shall specify the method of payment of the contributions. They
may also provide for payment of contributions due in respect of certain categories
of workers by means of stamps to be affixed to cards or booklets prepared for
this purpose.

8. The Employer shall, within the period prescribed in paragraph (5) of this

Article, submit to the Organization monthly payrolls in the forms specified by the
Organization.

ARTICLE (20)

1. The collection of contributions and fines imposed for delay is guaranteed as a

privileged claim in favour of the organization which comes immediately after
payment wages in the order of privileged claims.

2. The Organization may, after obtaining a court order, effect through the official
authorities, attachment or compulsory execution on any of the funds owned by
the employer or due to him from any government agency or individual for the
purpose of settlement of the amounts due to the Organization so long as the
statements of such amounts are duly approved by the Minister.

ARTICLE (21)

Each of the branches of insurance shall have accounts of its own. The Board of
Directors shall allocate to each branch its share in the administrative expenses
and shall lay down the rules governing the distribution among the various
branches of the revenues that do not belong to any particular branch.

ARTICLE (22)

The funds and revenues of the Organization shall only be used for providing the
benefits provided for in this Law and for covering the necessary administrative
expenses of the Organization.

ARTICLE (23)

The fiscal year of the Organization shall be the Hijrah year.

ARTICLE (24)

1.The financial Regulations shall regulate the following matters:

a. The budget and final account.
b. The accounts.
c. The balances of contributors’ entitlements which are not due yet.
d. The investment of funds.
e. Any other matter related with the financial management of the Organization
and has not been provided for in this Law.

ARTICLE (25)

A detailed study of the financial position of the Organization and each insurance
branch shall be made at least once every three years. The results of such study
may be taken as a basis for the revision of the contribution rates in accordance
with the provisions of paragraph (3) or Article (18). Should the study reveal an
actuarial deficit, the State shall cover such deficit by means of subsidy
appropriations in the general budget.

ARTICLE (26)

The administrative expenses of the Organization may not exceed 5% (five

percent) of its revenues. However, the Minster may, by decision of the Council of
Ministers on the recommendation of the Minister, reduce such rate or raise it up
to 7% (Seven Percent) as a maximum.
 Chapter V : THE BENEFITS

SECTION 1: BENEFITS UNDER THE OCCUPATIONAL HAZARDS BRANCH

ARTICLE (27)

1. Any accident suffered by the contributor during performance or by reason of work shall be
considered an employment injury. There shall also be considered an employment injury 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. The same shall
also apply to accidents suffered by the contributor during movements he makes for the purpose of
doing an assignment required by the employer.

2. The disease established to be caused by work shall be considered as employment injury, and so does
the occupational disease duly determined in accordance with the principles set forth in the next
paragraph, and the date of the first medical diagnosis of the disease shall be regarded as the date on
which the injury is sustained.

3. The occupational diseases shall be determined in accordance with such schedule as may be issued by
the Board of Directors which shall review it whenever the need thereof arises. The Regulations may fix
the maximum period during which the symptoms of the disease must appear in order to be considered
as occupational disease in cases where the symptoms of the disease appear on the contributor after he
has ceased to be engaged in an employment or occupation set forth in the schedule. The Organization’s
liability to award the benefits prescribed under this Law shall take effect on the date of cessation of the
contributor’s engagement in employment or occupation.

ARTICLE (28)

1. The contributor who has sustained an employment injury or his family members shall be entitled to
claim the following benefits:

a. The medical care required by the physical condition of the contributor.

b. The daily allowances for temporary work disability, if, by reason of the injury, the contributor
becomes temporarily unable to work.

c. The monthly benefit and lump sum compensation for permanent total or partial disability resulting
form the injury.

d. The monthly benefits for the family members.

e. The grant for the family of the injured person or recipient of the benefit in the event of his death.

2. There shall be no entitlement to any of these benefits unless the injury is sustained by the worker
after his registration is effected by the appropriate insurance office or within the time limit prescribed
by the Regulations for the employer to register his workers or within the time limit prescribed by the
Regulations for the worker to apply for his own registration if the employer has refused or failed to
register the worker. Once this condition is fulfilled, accrual of the right to receive the said benefits shall
not be subject to completing any period of contribution.

ARTICLE (29)

1. The medical care shall aim, through all possible means, at maintaining and restoring the health of the
injured person, or, should this be impossible, at improving his health condition and his ability to work
and to attend to his personal needs. Such medical care shall include the following :

a. The services of general practitioners, medical specialists and medical aids.

b. Dentistry services

c. Diagnostic examinations of any kind or nature.

d. Admission of the injured person to and his treatment in a hospital, convalescence center or in any
other adequate institution.

e. Medical substances required

f. Artificial limbs and the like or any medical or surgical appliances required to correct the injury in
addition to maintenance and replacement of these, as needed.

g. The expenses of transportation of the injured person and the companion, as needed, from and to the
workplace or from his dwelling to the medical center or hospital or medical clinic where he can receive
the treatment required by his condition and back, as well as their lodging expenses.

2. Medical care shall be provided without any time limitation and for as long as the condition of the
injured person requires.

3. The employer shall be liable to provide first-aid to the injured person and shall take the necessary
measures to meet this liability, taking into consideration the number of workers he employs and the
occupational hazards inherent in the performance of the operations carried out in his enterprise.

4. The medical care shall be provided by the hospitals, medical centers and clinics owned by the
Organization or entered into contract with for this purpose, or by the public health centers and aid
medical staff available at these centers which are likely to provide the proper care, without any charge
to the injured person. In emergency cases, the injured person may have recourse to any physician or
physician’s aid or private medical clinic or private hospital, and the Organization shall bear the ensuing
expenses, provided that it shall be notified of the same within three days from the date on which this
right is exercised, save if exceptional circumstances should prevent such notification, in which case the
period shall be extended accordingly.

5. The Organization may, if the financial position of the Occupational Hazards Branch so allows, set up
its own treatment centers or private hospitals for the treatment of injured persons and may establish
appropriate institutions to rehabilitate and prepare them both physically and vocationally. Also, the
Organization may, subject to the same conditions, establish special institutions for the employment of
those who have sustained employment injuries and of the disabled persons who are unable to find jobs
on the labour market.

6. The Regulations shall determine the manner in which the provisions of this Article will be
implemented, the methods and grace periods of the reporting of employment injury cases which must
be referred to the appropriate offices of the Organization, and the kinds of injuries that must be
reported.

ARTICLE (30)

1. If, as a result of duly recorded employment injury, the injured person is temporarily disabled, he
shall be entitled to a daily allowance for each day of work disability including holidays. The daily
allowance for injury shall be paid as of the day following the day on which the injury is sustained. The
entitlement to the daily allowance shall cease on the day of restoration of his work ability, his recovery,
establishment of his permanent disability, or his death.

2. The amount of the daily allowance for injury shall be assessed at the rate of 100% (one hundred
percent) of the injured person’s daily contributory wage for the month preceding the month in which
the injury was sustained, which amount shall be reduced to 75% (seventy five percent) of the said wage
while he is under treatment at the Organization’s expense at a treatment center or elsewhere.

3. The Regulations shall prescribe the method and intervals of payment of the daily allowance.

4. Payment of the allowance may be suspended by a decision of the director of the office to which the
injured person belongs, if it is established by a medical report that the injured person has refused to
abide by the medical instructions required by his physical condition or to undergo a medical
examination.

ARTICLE (31)

1. In case of permanent total disability resulting from an employment injury, the injured contributor
shall be entitled to a monthly benefit equivalent to 100% (one hundred percent) of his average monthly
contributory wage determined in accordance with paragraph (4) of this Article. However, if the
permanent total disability benefit payable within the Kingdom is less than SR 1,500 (one thousand five
hundred Saudi Riyals), it shall be raised to such amount. The Regulations may provide for raising the
minimum benefit based on the increase in the cost of living in the Kingdom and within such limits as
may be permitted by the financial position of the Organization.

2. In case of permanent partial disability resulting from an employment injury which is equivalent to or
exceeding 50% (fifty percent), the injured contributor shall be 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.

3. The amount of the payable monthly benefit shall be increased by 50% (fifty percent) as an allowance
if the injured person is in need of the constant help of others in the performance of his daily life
activities, provided that the amount of such allowance shall not exceed the maximum prescribed by the
Regulations.

4. The average monthly wage shall be computed by taking one third of the total contributory wages
paid during the three months preceding the month in which the injury was sustained. If during this
period, the injured person had not worked at all or had worked partially for the employer in whose
employ the injury was sustained, the average monthly wage shall be computed by taking one third of
the total wages which would have been subject to contribution had the injured person been working
under the same conditions and continuously with the last employer throughout the base three months
period.

ARTICLE (32)

In case of permanent partial disability resulting from employment injury which is less than 50% (fifty
percent), the injured person shall be entitled to a lump sum injury compensation equivalent to 60 times
the monthly benefit prescribed for permanent partial disability which he could have claimed according
to the percentage of the resulting disability pursuant to the provisions of the preceding Article, if he
was not over 40 years on the date he sustained the injury, otherwise the said compensation shall be
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 shall not be less than 36 times the assumed monthly
benefit and shall, in no way, be more than SR 165,000 (one hundred sixty five thousand Saudi Riyals).
The Regulations may, by justifiable reasons, provide for raising this maximum.

For the purposes of implementation of the provisions of this Article, the fractions of a year shall be
considered as one whole year if they are equivalent to or exceeding six months and shall be disregarded
if they are less than six months.

ARTICLE (33)

1. Should a recipient of a permanent partial disability benefit be afflicted with another disability
resulting from another employment injury, he shall be entitled to receive a new benefit computed on
the basis of the total injuries sustained by him, taking into account that the total disability degrees shall
not exceed 100% (one hundred percent), and on the basis of the average wage for the three months
preceding the month in which the last injury was sustained. However, if such average wage proves to
be less than that on the basis of which the first benefit was computed, the new benefit shall be
computed on the basis of the higher average wage.

2. Should a contributor, who had previously received a lump sum injury compensation pursuant to the
provisions of Article (32) hereof, sustain a new injury he shall be entitled to a monthly benefit where
the total percentage of his disability in both injures qualifies him to become a recipient of a permanent
disability benefit as provided for in a paragraph (2) of Article (31), provided that the lump sum
compensation amount already paid to him shall be recovered by the Organization by installment
deduction of the same from the first thirty six benefit payments. However, where payment of the
benefit is discontinued pursuant to the provisions of paragraph (2) of Article (34) or by reason of death
before the full compensation amount is deducted, the balance of installments shall not be recovered.

3. In case an injury is repeatedly sustained the disability percentages shall be totaled notwithstanding
that such totaling may not qualify the injured person for monthly benefit, so long as such totaling shall
raise the compensation payable to the injured person for the total injuries sustained by him, in which
case the compensation payments already received for the former injuries shall be deducted from the
compensation payable for the total injuries.

ARTICLE (34)

1. The degree of permanent disability shall be determined according to the nature of the infirmity
sustained, the general condition of the injured, his age and occupation, his physical and mental
aptitudes and also according to his professional capabilities. This shall be done in accordance with the
schedule of disability rates issued by the Board of Directors which shall review it whenever the need
thereof arises.

2. The disability benefits shall be granted on temporary basis, and the Organization shall require the
injured persons to undergo periodical examinations during the first five years following the assessment
of the disability. The benefit shall become payable for life by the lapse of the said five years. The dates
of the examinations shall be fixed by the Medical Boards provided for in Article (53) of this Law.
Should such examinations show an increase or decrease in the degree of disability of the injured
person, the Organization shall, of its own accord or at the request of the beneficiary, revise the benefit,
and such benefit shall be raised, reduced or stopped, depending on the change in the condition of the
beneficiary, as of the first day of the month immediately following the confirmation of the intervening
change.

3. The injured contributor who is entitled to monthly benefit shall have the right to concurrently
received both the monthly benefit and his employment wage.

ARTICLE (35)

1. The members of the family of the deceased contributor as defined by paragraph (8) of Article (2)
shall be entitled to benefits in the proportions prescribed by paragraph (2) of this Article, if the
contributor was a recipient of a permanent total or partial incapacity benefit or died in employment by
reason of an employment injury. In the later case, the survivors benefits shall be computed on the basis
of assumption of contributor’s entitlement to a benefit equivalent to the permanent total disability
provided for in paragraph (1) of Article (31).

2. The benefit shall be paid to the eligible family members on equal basis, at the rate of 100% (one
hundred percent) for three members and at the rate of 75% (seventy five percent) for two members, and
at the rate of 50% (fifty percent) for one member, provided that the share payable within the Kingdom
to any family member shall not be less than SR 300 (three hundred Saudi Riyals) per month, and that
their total shares shall, accordingly, not exceed the average wage taken as a basis for the calculation of
the deceased contributor’s benefit or SR 1,500 (one thousand five hundred Saudi Riyals) per month
whichever is greater. Should their total shares exceed such amount, their individual shares shall be
reduced proportionately.

The Regulations may provide for raising said minimum subject to the increase in the cost of living in
the Kingdom and the results of the review of the financial position of the organization. In case of
cancellation of a share of a member of the family, his share shall be repaid to the other eligible family
members without prejudice to the foregoing limits.

3. a. The benefit payable to the widow, daughter, sister or grand daughter shall be suspended if she
marries. However, if she is divorced or widowed thereafter, payment of her suspended share shall be
resumed to her. If such share has already been wholly or partially redistributed among certain eligible
survivors, their entitlements shall be reduced by the same amount, in which case the total amount of
shares shall not exceed the limits provided for in paragraph (2).

b. In case of divorce or widowhood of the daughter, sister or granddaughter who was married at the
time of death of the contributor or recipient of the benefit, the benefit shares shall be redistributed for
the purpose of granting her the payable share.

4. The benefit payable to the incapacitated son, brother or grandson shall be cancelled in case he is no
more incapacitated. However, if he is re-incapacitated his suspended share shall be returned to him. In
case such share has already been wholly or partially redistributed among certain eligible survivors,
their shares shall be reduced by the same amount, provided that the total shares shall not exceed the
limits provided for in paragraph (2).

ARTICLE (36)

As an exception to the provisions of Articles (31) and (35), the non-Saudi injured person who qualifies
for monthly benefit or the members of his family in the event of his death as a result of an employment
injury, shall be paid a lump sum compensation in lieu of the monthly benefit. The lump sum
compensation shall, in this case, be assessed according to the following rules:

1. The total benefit payable for seven years for the injured person who is afflicted with permanent total
disability up to a maximum of SR 330,000 (three hundred thirty thousand Saudi Riyals).

2. The total benefits payable for five years for the injured person who is afflicted with permanent
partial disability up to a maximum of SR 165,000 (one hundred sixty five thousand Saudi Riyals).

3. The total benefit payable for seven years for the contributor deceased as a result of an employment
injury, which benefit amount shall be distributed among his eligible family members in accordance
with the provisions of paragraph (2) of Article (35) of this Law, provided that the distributed lump sum
shall not exceed the maximum limit fixed under paragraph (1).

4.The Regulations may, for justifiable reasons, provide for raising the maximum limits mentioned in
paragraphs (1) and (2).

ARTICLE (37)

The Organization shall be liable to pay the expenses of preparation and transportation of the body of
the deceased contributor who was receiving an employment injury benefit in accordance with the
details laid out in the Regulations.
 SECTION 2: BENEFITS UNDER THE ANNUITIES BRANCH

ARTICLE (38)
1.
a. If the contributor attains 60 years of age and ceases to be engaged in any activity
subject to this Law, he shall be entitled to a retirement pension if he has completed a
minimum period of contribution of 120 (one hundred twenty) months.

b. The contributor who has not attained sixty years of age and ceased to be covered
under the provisions of this Law, may receive a retirement pension if he has
completed a minimum period of contribution of 300 (three hundred) months.

c. The female contributor, who leaves the activity subject to this Law, may receive
her payable pension so long as, on the date of leaving the said activity, she has
attained at least fifty five years of age and completed at least 120 (one hundred
twenty) contribution months.

d. The contributors who work in arduous or unhealthy occupations and ceased to be

covered under the provisions of this Law, may receive their payable pensions so long
as they have completed 120 (one hundred twenty) contribution months, provided that
the Regulations shall specify such occupations, their employers and their pensionable
age of early retirement.

e. The Organization shall pay the retirement pension to the family of the contributor
who is sentenced for a term of imprisonment so long as he has completed at least 120
(one hundred twenty) contribution months even though he may be under 60 years of
age. The Regulations shall set the rules and procedures for the implementation of this
provision including the term of imprisonment for the purposes of taking advantage of
this provision.

f. The contribution months shall be computed in accordance with the provisions of

Article (47) and the age of the contributor shall be determined in accordance with
provisions of Article (48)

2. The contributor who has completed at least five years of contribution and his contribution has
discontinued at age sixty without completing the period qualifying for retirement pension, may claim to
be credited for certain period provided that the period credited for shall not exceed five years or the
period required to qualify him for retirement pension whichever is less. He shall, in this case, pay to the
Organization the total contributions payable to the Annuities Branch provided for in sub-paragraph 2(a)
of Article (18) for each month of the credited period, computed on the basis of the average monthly
contributory wage to be used for the purposes of determination of pension. The said amount of
contributions shall be paid in one payment or in monthly installments as provided for in the
Regulations.

3.
a. The retirement pension shall be computed by multiplying one-fortieth of the
average monthly wage for the last two years by the number of contribution years and
months, provided that the pension amount shall not exceed 100% (one hundred
percent) of the said average.
 b. “Average monthly wage” shall mean one twenty-fourth part of the total
contributory wages received throughout the last twenty four months of contribution
period.

c. The average referred to in the preceding sub-paragraph shall not exceed 150% (one
hundred only) of the contributory wage received at the beginning of the last five
years of the contribution period. The Board of Directors may raise this percentage in
accordance with the wage graduation. This provision shall apply to the contributors
who are not covered under the provision of paragraph (2) of Article (19) in respect of
the last five years of their contribution period.

d. If it is established that the contributor’s average monthly wage for the last two
years of his contribution period is less than his average wage for former years, his
pension shall be computed on the basis of dividing his contribution periods into
separate periods should the contributory wages vary. The pension is respect of each
period shall be based on the average wage for the last two years of such period,
taking into consideration that the final pension shall be equivalent to the total
pensions payable for the separate periods, provided that it shall not exceed 100%
(one hundred percent) of the mean average wages taken as a basis for the
computation of pensions payable for the separate periods.

The Regulations shall specify the rates of contributory wage variation between one contribution period
and another justified to be reckoned as separate period and shall set forth the maximum number of
periods which may be considered as separate periods.

e. The Regulations shall determine the method of computation of pension for the period of contribution
paid totally or partially with more than one employer.

f. The retirement pension payable to the contributor shall not be less than the minimum limit provided
for in paragraph (1) of Article (31).

4. a. With due regard to the provisions of paragraph (2) of Article (4), if a recipient of a retirement
pension resumes work whereby he benefits from the provisions of this Law, his pension shall be
suspended as long as he is engaged in this work. If his wage from his new work is less than his average
wage taken as a basis for the adjustment of such pension or his last wage included in such average,
whichever is greater, a pension amount will be credited to him to make up the difference. Upon the
termination of his final employment, he shall be treated by one of the following two methods,
whichever is more suitable to him:

1. The pension shall be adjusted for the total of the previous and
the final periods of contribution, as both are considered as one
integrated unit, on the basis of the average contributory wage for
the last two years of the final period of contribution.

2. The pension shall be adjusted for the final period of contribution,

regardless how small such period may be, on the basis of the
average monthly wage for the last two years of the said period or
for the whole said period if it is less, and such pension amount shall
be added to the pension he used to receive before resuming the
insurable work.

b. Should the final period of contribution be terminated by reason of non-

occupational disability or death, the pension payable to the contributor or to members
of his family, as applicable, shall be computed on the basis of the retirement pension
provided for in the sub-paragraph (4.a.2) of this Article or on the basis of the
survivors’ or disability pension computed in accordance with either the provisions of
 Article (39) or the provisions of Article (40), as applicable, and on the basis of
integrating both the previous and final periods of contribution (whichever is greater
between the two pensions).

ARTICLE (39)

1. The contributor who is afflicted with a non-occupational disability shall be entitled to a pension so
long as he has completed a period of contribution of 12 (twelve) consecutive months of contribution or
18 (eighteen) non-consecutive months immediately following the date of his actual registration with the
Organization.

2. The disability shall have occurred before attainment of age 60 and the contributor shall have been
covered under the provisions of this Law, provided that the disability shall be established by the
appropriate Medical Boards within 18 (eighteen) months from the date of termination of the
contribution period. However, where the disability has occurred while the contributor is no more
covered under the provisions of this Law, he shall be entitled to the retirement pension without having
to wail until he is sixty years of age so long as he has completed ten or more years of actual
contribution or has completed the same by period credited to him by virtue of the provisions of
paragraph (2) of Article (38).

3. The non-occupational disability pension shall be computed in accordance with the retirement
pension computation rules provided for in Article (38), provided that the pension amount shall not be
less than the minimum provided for in subparagraph 3 (f) of the said Article or 50% (fifty percent) of
the average monthly contributory wage for the last two years (or of the average wage for the
contribution period, if less) whichever is greater.

4. The disability pension shall be increased by 50% (fifty percent) as an allowance if the disabled is in
need of the help of others in the performance of his everyday life activities, provided that the amount of
allowance shall not exceed the maximum prescribed by the Regulations.

5. The non-occupational disability pension shall be granted on a temporary basis and for as long as the
disabled meets the conditions laid down in this Article.

Continuity of the state of disability shall be determined by subjecting the pensioner to periodical
examinations by the Medical Board referred to in Article (53) which shall fix the date of the next
examination.

The non-occupational disability pension shall become final when the pensioner attains sixty years of
age.

6. Within the meaning of this Article, the contributor shall be considered afflicted with a non-
occupational disability if he meets the following conditions:

a. If, by reason of his deteriorated physical, psychological or mental state of health,

or of the amputation of one of his organs or of his affliction with an infirmity, taking
into consideration the general conditions of the work opportunities, the disabled
contributor finds it impossible to earn a wage equals to at least one third of his
previous wage in his original occupation or in any other occupation compatible with
his capabilities, age, physical and mental aptitudes and vocational training.

b. If, according to medical prognosis, the state of disability mentioned in sub-

paragraph(a) is such as would, by medical judgment, be presumed to last for a period
equaling or exceeding six months.

7. If a recipient of a non-occupational disability pension is re-covered under the provisions of this Law
prior to attaining sixty yeas of age, he shall be examined by the appropriate Medical Board. If it deems
that he is recovered, his pension shall be discontinued, but if it deems that he is still disabled according
to the medical concept provided for in the preceding paragraph, he shall be treated as a retired
pensioner who is re-covered under the provisions of this Law as provided for in paragraph (4) of
Article (38).

ARTICLE(40)
1. In the event of the death of a recipient of a non-occupational disability pension or a recipient of a
retirement pension, each of his family members shall be entitled to a share of the pension of the
deceased. Also in the event of death of a contributor in an insurable employment, his family members
shall be entitled to survivor’s pensions if the deceased contributor had period of contribution of not less
than three consecutive months or six non-consecutive months immediately following the date of his
actual registration with the Organization. In the said cases, the survivors’ pension shall be computed in
the same method as the non-occupational disability pension. However, if the contributor dies after he
leaves the insurable employment, his family members shall be granted the retirement pension if he has
completed the period qualifying for such pension under the provisions of paragraphs (1.a) and (2) of
Article (38).

2. For the purposes of application of the provisions of the preceding paragraph, the pension shares of
the family members and such amendment as may be made thereto, shall be determined in accordance
with the provisions applied in respect of entitlement to the survivors’ benefits in Article (35) of the
Occupational Hazards Branch.

ARTICLE (41)

1. The contributor who has attained age sixty or over or the contributor who is afflicted with a
disability of the kind provided for in paragraph (6) of Article (39), if he fails to qualify for a retirement
or disability pension, shall be entitled to a lump sum compensation assessed at the rate of 10% (ten
percent) 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% (twelve percent) for each
month in excess thereof.

In exception of this paragraph, the lump sum compensation payable for the period of contribution
completed before this Law is put into effect shall be computed at the rate of 6% (six percent) of the
said average wage for each month of his contribution in the first five years and at the rate of 7% ( seven
percent) for each month in excess thereof.

2. In the event of death of a contributor who failed to satisfy the conditions qualifying for survivors’
pension, his family members shall be entitled to the compensation amount computed in accordance
with the provisions of the preceding paragraph, which compensation shall wholly be divided among the
family members who are eligible for pension in their respective proportions.

3. In exception of the provisions of paragraph (1), the contributor may, in the event of his leaving the
insurable employment, receive a lump sum compensation payable under the provisions of the said
paragraph, without having to wait until he is 60 years of age or becomes disabled, in the following
cases:

a. If he moves to another employment insured under the civil or military retirement

scheme, and the relevant legislation do not permit to take into account his period of
contribution upon determination of his entitlements under the said scheme.

b. If the contributor is a female.

c. In such other cases as may be determined in accordance with the controls and
criteria provided for in the Regulations.

4. If the contributor returns to an insurable employment after having received a lump sum
compensation, he may repay what he has already received in consideration of re-inclusion of the
relevant period of contribution, in accordance with such provisions as may be laid down by the
Regulations.
 SECTION 3: PROVISIONS FOR APPLICATION OF THE ANNUITIES BRANCH
TO VOLUNTARY CONTRIBUTORS

ARTICLE (42)

The provisions of this Section shall apply to the voluntary Saudi contributors. Save for the provisions
of this Section, all other provisions of this Law that apply to the other contributors and their family
members shall apply to the voluntary contributors in accordance with the provisions of the
Implementing Regulations.

ARTICLE (43)

1. In exception of the provisions of paragraph (2) of Article (19), the voluntary contributor shall
choose, from among the income categories prescribed by Schedule No. (1) hereto attached, the
category on which basis he wishes to contribute. Such income category shall be deemed as the
contributory wage for the purposes of application of all the provisions of the Law. The Regulations
which shall also prescribe the rules that shall be followed in the event of the contributor’s wish to
change the category into a higher or lower one.

2. By decision of the Minister, on the recommendation of the Board of Directors of the Organization,
higher income categories may be added to Schedule No.(1) attached hereto, subject to the determined
increase in the maximum contributory wage limit of all contributing workers.

3. The Regulations shall lay down the procedures for payment of contributions in respect of the said
categories.

4. The voluntary contributors of the said categories shall be excepted from the provisions of sub-
paragraph (3.c) of Article (38).

ARTICLE (44)

1. In exception of the provisions of Article (39), if the contribution commences after the contributor
reaches age fifty, the period qualifying for the non-occupational disability pension shall not be less than
twenty four consecutive contribution months or thirty six non-consecutive contribution months,
provided that the disability should have rendered the contributor totally and permanently unable to
engage in his normal occupation or activity or any other occupation or activity compatible with his
aptitudes and capabilities.

2. In exception of the provisions of Article (40), if the contribution commences after the voluntary
contributor reaches age fifty, the period qualifying for survivors’ pension shall be twelve consecutive
contribution months or eighteen non-consecutive contribution months.

ARTICLE (45)

In exception of the provisions of paragraphs (1) and (2) of Article (38), the voluntary contributor may
not demand early retirement and payment of his pension before he attains sixty yeas of age unless he
proves the termination of his activity on which basis he has contributed to the scheme.

ARTICLE (46)

If the voluntary contributor’s contribution ceases without having completed the contribution period
qualifying him for pension, his contribution shall be cancelled, and he or his family members, as
applicable, shall be refunded the total contributions he has already paid.
 SECTION 4: THE PROVISIONS COMMON TO THE OCCUPATIONAL
HAZARDS BRANCH AND ANNUITIES BRANCH

ARTICLE (47)

1. The Regulations shall specify the way of computation of the contribution months credited to the
contributor on the basis of the method adopted for the computation of contributions in accordance with
the provisions of paragraph (3) of Article (19).

2. The periods during which the contributor received daily allowance for injury shall be regarded as
contribution periods for the purposes of entitlement to benefits under the Annuities Branch.
Accordingly, every 30 daily allowances shall be regarded as a contribution month.

ARTICLE (48)

The age of the contributor shall be determined by means of his birth certificate or by the certificate
duly issued by the appropriate authorities. If it is impossible to produce such documents, the age shall
be determined by one or more physicians to be designated by the Organization. The person concerned
may appeal against the physician’s decision before the appropriate Medical Board provided for in
Article (53). Wherever entitlement to or determination of the amount of the benefit depends on the age
of the contributor, the same procedure shall be applied.

The age determined as above shall be final notwithstanding that a difference between the actual age
and the determined age may be discovered later.

ARTIICLE (49)

The Regulations implementing this Law shall lay down the following:
1. The procedures for and times of payment of benefits and pensions.
2. The procedures for payment of benefits to the beneficiaries residing outside the
Kingdom.

ARTICLE (50)

The widow, daughter, sister or granddaughter who is eligible for monthly benefit or pension under the
provisions of the Law shall be paid, for once, a marriage grant equals in amount 18 (eighteen) times the
monthly benefit or pension she was receiving, and, accordingly, payment of such benefit or pension
shall discontinue at the end of the month in which the marriage took place.

If, after payment of such grant, the benefit or pension share of any of the said persons is reinstated as a
result of her divorce or widowhood prior to the lapse of the eighteen months period from the date of
discontinuity of payment of benefit or pension, the balance for the remaining period shall be
recovered from her share determined to be reinstated.

ARTICLE (51)

The Organization shall pay a grant equivalent to the deceased contributor’s pension or benefit for three
months up to a maximum of SR 10,000 (ten thousand Saudi Riyals) in the following cases:

1. In case of death of a contributor as a result of an employment injury or death of a recipient of

permanent total or partial disability benefit.

2. In case of death of an employed contributor who has completed the period qualifying his family
members for pension.

3. In case of death of a recipient of an old age or non-occupational disability pension.

The Regulations shall designate the persons to whom the grant shall be paid, and the Board of
Directors may, for justifiable reasons, raise the maximum amount of the grant.

ARTICLE (52)

1. Payment of the monthly benefit and pensions provided for in this Law shall commence on the first
day of the month immediately following the month during which the conditions required to quality for
benefits are satisfied, except that the permanent total or partial disability benefits shall be paid as of the
day on which payment of the daily injury allowance is discontinued.

2. Payment of benefits and pensions shall cease at the end of the month in which the respective
beneficiaries die or otherwise on the day on which they cease to qualify for such benefits or pensions in
other cases.

ARTICLE (53)

1. The degree of disability required for entitlement to occupational and non-occupational disability
benefits shall be assessed by the Primary Medical Boards set up at the Organization’s Head Office and
offices, as needed. The Medical Boards shall also have the authority to determine whether an injury or
disease is occupational or non-occupational and to determine the prescribed period or disability.

2. The contributor or his eligible survivors (as applicable) or the Organization may appeal against the
decisions issued by the Primary Medical Boards before an Appeal Medical Board to be set up at the
Head Office of the Organization.

3. The Regular shall set forth the composition of the Medical Boards provided for in the two preceding
paragraphs, their rules of procedure, and the method of appointment and remunerations of their
members and such other provisions as may be related to such Boards.

ARTICLE (54)

1. The Organization shall pay to the contributor or to his family members the full benefits provided for
in this Law regardless of the causes and circumstances of the contingency. However, such benefits
shall not be due if the contingency has resulted by willful conduct or criminal act of the beneficiary.

2. The employer shall not be liable to pay a benefit to the contributor who sustains an employment
injury or to his family members unless the injury has been caused by the employer’s willful conduct,
gross error or failure to abide by the Law or occupational health and safety regulations. In these cases,
the injured person or his family members shall reserve their full rights to the benefits prescribed for
them by the Islamic Shariah or other legislations. The injured person or his family members shall also
reserve their full rights to such benefits in case of an employment or ordinary injury which is caused by
the fault of a third party other than the employer. In all cases, the Organization shall pay to the
beneficiaries the benefits awarded under the Law.

3. Failure on the part of the employer to pay the contributions shall not prejudice the entitlement of the
worker to benefits.

ARTICLE (55)

1. The Organization shall pay to the family members of the contributor, who is sentenced for a term of
imprisonment, his injury benefits and pensions, as long as he is detained in prison.

2. The injury benefits and the non-occupational disability pensions may be suspended in accordance
with the provisions of paragraph (4) of Article (30), if without legitimate excuse, the beneficiary
refuses to submit to medical treatment, visits and examinations or to regularly attend the occupational
re-training or rehabilitation courses prescribed by the appropriate agencies of the Organization, or to
abide by any other medical instructions.

3. The combination of both the benefits awarded under the Occupational Hazards Branch and the
benefits awarded under the Annuities Branch shall be within the following limits:
 a. The contributor may combine both the benefit and pension within a limit not
exceeding 100% (one hundred percent) whichever is greater between the following
two amounts:
The first : 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 shall not exceed age sixty.

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

b. The contributor or his 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.

c. The combination of both the benefits and pensions payable to the family members
shall be in the following cases:

1. The sons and daughters eligible for pension or benefit shall

combine their entitlement in respect of their father with their
entitlement in respect of their mother.

2. The widow shall combine her own pension with her husband’s
pension.

3. The beneficiary who is incapacitated for work shall combine

both the pensions and benefits payable to him.

d. It is not permissible to combine the grants prescribed in paragraphs (1), (2) and (3)
of Article (51).

e. In cases other than the foregoing ones, it is not permissible to the family members
to combine more than one benefit or between the benefit and work income, except in
cases and within the limits provided for by the Regulations.

ARTICLE (56)

The cash benefits provided for in this Law are neither attachable nor assignable save in accordance
with the same conditions as provided for in the workmen and Labour Law.

ARTICLE (57)

Claims for daily injury allowances, transportation and lodging allowances and deceased’s family grant
shall not be accepted after the expiry of one year, and claims for the remaining benefits shall not be
accepted after the expiry of five years from the date on which the right to benefit arises unless there is
an excuse acceptable to the Organization.

ARTICLE (58)

The Organization shall pay the benefits determined by the Law to the family members of the missing
contributor in accordance with the following provisions:

1. The “missing ” shall mean the contributor established to be missed in an incident

most likely to have perished him without finding his body, like being missed in an
incident of drowning, fire, explosion or natural catastrophe.

2. For the purposes of insurance entitlements due to the family members, the missing
contributor shall be treated the same as the deceased after the lapse of at least six
months from his date of missing. If it is established by the Organization by 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 shall be determined in accordance with the
provisions of the said Branch.

3. Should the missing contributor be discovered to be alive, his entitlements shall be

re-adjusted according to the Law, and the amounts already paid by the Organization
to discharge its obligation shall be valid in respect of the contributor and shall be
deducted from his entitlements. If such amounts are in excess of his entitlements, the
recovery of the balance shall be disregarded.

4. The rules and procedures for application of the provisions of this Article shall be laid down in the
Regulations which may further include other forms of missing cases in which the family of the missing
contributor shall receive the said benefits in accordance with the conditions provided therein
 Chapter VI: GENERAL PROVISIONS

ARTICLE (59)

1. The Organization shall be exempted from all taxes and fees.

2. The benefits provided for in this Law shall be exempted from all taxes and fees and from all kinds
of levies.

ARTICLE (60)

1. The application of this Law and the relevant measures and regulations for the purpose of its
implementation by the employers and workers shall be supervised by the insurance inspectors who
shall be designated by the Organization. The employers and their representatives shall allow the
Organization’s inspectors to obtain such information and documents as may be required to facilitate the
performance of their tasks and to examine the records related to the nature of work, numbers of
workers, wages of workers and the method of calculation and payment of such wages. Any act of
opposition or hindrance committed against the Organization’s inspectors during the performance of
their tasks shall be subject to the same penalties prescribed for cases of opposition and hindrance to the
performance of the functions of the labour inspectors.

2. The insurance inspectors shall submit to the Organization reports on the violations, if any. The
Organization shall take all the measures to verify and investigate such violations and take the necessary
action in respect thereof.

3. The organization’s inspectors and other employees shall be liable to show good treatment and
maintain the secrecy of the information that come to their knowledge in the course of the performance
of their functions. Under no circumstances shall they disclose or convey any of such secrets to any one
other than the competent agencies of the Organization. The Organization shall apply to the violating
employees such penalties as may be required under the laws.

ARTICLE (61)

1. The employers, contributors and whoever may be acting on their behalf shall have the right to
submit, through hierarchical levels, and appeal to any decision issued by any competent agency of the
Organization in connection with the registration, contributions or benefits. Such appeal shall be
submitted to the agency immediately above the one that issued the decision appealed against, as shown
below.

a. To the Governor of the Organization, with regard to the decisions made by a

director of an office.
b. To the Board of Directors, with regard to the decisions made by the Governor.
2. Employers, workers and whoever may be acting on their behalf, whose appeal submitted through
hierarchical levels has not been accepted, may lodge a complaint with the juridical authority concerned
with labour cases hearings.

ARTICLE (62)

1. An employer who does not comply with any of the provisions of this Law and its Implementing
Regulations shall be penalized with a fine not less than SR 5,000 (five thousand Saudi Riyals). This
limit shall be doubled if the same violation is committed again. The fine shall be multiplied by the
number of contributors in respect of whom the employer committed one or more violations, provided
that the aggregate amount of the fines imposed each time shall not exceed SR 50,000 (fifty thousand
Saudi Riyals).

2. Without prejudice to any penalty more severe provided for in another law, a person who willfully
gives incorrect information for the purpose of obtaining for others any undue benefits shall be
penalized with a fine no more than SR 2,000 (two thousand Saudi Riyals). The said fine limit shall be
doubled if the same violation is committed again.

3. A person who gives incorrect information for the purpose of obtaining for himself undue benefits
shall be penalized with a fine to be paid to the Organization. Such fine shall not exceed the total
amount of benefit unduly paid to him by the Organization. Furthermore, he shall be required to repay
whatever is paid of such social insurance benefits.

4. Investigation committees shall be formed in the Organization’s offices to examine the violations and
determine the fines.

5. The decision for imposing the fine provided for in the preceding paragraphs shall be issued by the
Governor of the Organization. The concerned person may, within thirty days from the date of notifying
him of the decision, appeal against the decision in accordance with the provisions of Article (61).

6. None of the fines provided for in this Article may be imposed in respect of the violations committed
before five or more years.

ARTICLE (63)

Any agreement or settlement which is made by those covered by this Law and is inconsistent to the
provisions of this Law shall be considered null and void if it is liable to prejudice the rights of the
beneficiaries or to impose additional obligations on the contributors or their family members.
 Chapter VII : TRANSITIONAL AND CONCLUDING PROVISIONS

ARTILCE (64)

The workers covered under the provisions of this Law who work within the Kingdom and suffer
accidents during or by reason of work or contract occupational diseases before the Occupational
Hazards Branch applies to them, shall be treated in accordance with the other statutory provisions
related to compensations for employment injuries which are in effect on the date of occurrence of the
accident or discovery of the disease.

ARTICLE (65)

In exception of the provision of sub-paragraph 2 (a) of Article (18), the contributing worker’s share of
contribution shall be graduated at the following rates: at 6% (six percent) of the contributory wage for
one year from the date this Law is put into effect, then raised to 7.5% (seven and a half percent) for
another year, and raised to 9% (nine percent) thereafter.

ARTICLE (66)

In exception of the provisions of paragraph (3) of Article (38) and Article (41), the benefits payable for
the period preceding the implementation of this Law for which the contributor has paid contributions
on the basis of wages higher than the wages prescribed by virtue of paragraphs (1) and (2) of Article
(19), shall be computed on the basis of the contributory wages regardless of the length of the period, or
on the basis of the last wages at the end of the final period of contribution, whichever is better for the
contributor, with due regard to the rules for entitlement and computation of pension and lump sum
compensation provided for in this Law.

ARTICLE (67)

The contributor or any of his family members, as applicable, who satisfies the conditions set forth in
the Regulations and is receiving within the Kingdom on the date this Law is put into effect, a monthly
benefit or pension payable under the former Social Insurance Law, his payment shall be increased as
follows:

1. If the benefit or pension received by the contributor is less than SR 1,500 (one
thousand five hundred Saudi Riyals) per month, it shall be raised to this amount.
 2. If the benefit or pension which has, after the death of the contributor, been divided
among his family members is less than SR 1,500 (one thousand five hundred Saudi
Riyals) per month, the shares of the eligible family members shall be re-determined
on the basis of raising their breadwinner’s entitlement to this amount.

3. If the share of any of the family members in the benefit or pension is less than SR
300 (three hundred Saudi Riyals), it shall be raised to this amount, provided that the
total amount of the shares of the family members pursuant to this provision shall not
exceed SR 1,500 (one thousand five hundred Saudi Riyals) per month or the average
wage taken as a basis for the calculation of the benefit or pension payable to the
deceased contributor, whichever is greater, without prejudice to the provisions of the
preceding paragraph.

4. The provisions of the preceding paragraphs shall be applicable with effect from the
beginning of the month immediately following the date of putting this Law into
effect.
ARTICLE (68)

1. The Minister shall, on the approval of the Board of Directors, and within six months from the date of
publication of this Law, issue the decisions and regulations required for putting it into effect and such
decisions and regulations shall be published in the official gazette.

2. The decisions and regulations in force on the date of putting this Law into effect shall continue to be
valid in such matters as may not contradict the provisions herein until the decisions and regulations
provided for in the preceding paragraph are issued.

3. Until the schedule of occupational diseases provided for in paragraph (3) of Article (27), the
schedule issued by the Council of Ministers resolution No. 165 dated 07/10/1420 H shall continue to
apply.

4. Until the schedule of disability rates provided for in paragraph (1) of Article (34), the schedule
issued by the Council of Ministers resolution No. 191 dated 11/11/1418 H. shall continue to apply.

ARTICLE (69)

1. This Law shall replace the Social Insurance Law issued by the Royal Decree No. M/22 dated
6/9/1389 H and shall invalidate all the provisions that are contradictory hereto, and the ensuing rights
and obligations shall transfer to the Organization, including the obligations resulting from its
replacement of the Contractors’ Fund.

2. The Minister may, by a decision to be issued by him on the approval of the Board of Directors,
prescribe the provisions hereof that apply to the contributors whose contribution period has been
terminated prior to putting this Law into effect, as well as to their family members.

ARTICLE (70)

This Law shall be published in the official gazette, and shall come into force with effect from the
beginning of the month immediately following the expiry of sixty days from the date of its publication.

SCHEDULE NO. (1)

THE CATEGORIES OF THE MONTHLY INCOME TAKEN AS A BASIS FOR

THE COMPUTATION OF THE CONTRIBUTION OF THE

 NON-WAGE- EARNING CONTRIBUTORS

Category No. Amount in Riyals Category No. Amount in Riyals

1 1,200 21 7,900
2 1,400 22 8,600
3 1,600 23 9,400
4 1,800 24 10,300
5 2,000 25 11,300
6 2,200 26 12,400
7 2,400 27 13,600
8 2,600 28 14,900
9 2,800 29 16,300
10 3,000 30 17,800
11 3,300 31 19,600
12 3,600 32 21,600
13 3,900 33 23,800
14 4,200 34 26,200
15 4,600 35 28,800
16 5,000 36 31,700
17 5,500 37 34,900
18 6,000 38 38,400
19 6,600 39 42,200
20 7,200 40 45,000
TERM
Reporting the Injury

The injured person or who may act in his behalf shall inform the employer within seven days
form the date of the injury, recurrence, complication or the detection of the decease. The
employer or who may act on his behalf shall inform the concerned GOSI field office of the
occupation injury which the first medical aids have not been sufficient. This shall be within three
days of his knowledge or report of the injury. Form No. (10/Occ.) shall be used in this case.

Injury

The injury resulted in an accident which happened to the insured person while conducting his
work or as a result of such job, or an accident accrued while commuting from his home to the
employer place of work. In addition to the accident which sustained while the worker goes to or
from the place he eats in or prays at, or the injury that was sustained by the worker in his
transportations while performing his job which the employer has assign the worker to do. The
diseases which had been proven that were sustained as a result of conducting the work of the
insured person shall be considered as an occupational injury, also, the diseases which are
mentioned in the occupational diseases table.

Occupational Disease

A disease that may be cause by occupation and not caused of any other factors outside the
insured person's work, provided that this disease is mentioned in the occupational diseases
table where such diseases are listed and limited.

Period of Treatment

The duration extending from the date on which the injury occurred and the injured person was
hospitalize to the date on which he is recovered, stabilized condition, determining disability or
he dies. This period shall include the period of inpatient and visiting outpatient clinics.

Treatment Instructions

The instructions issued by the Medical Authority to be followed by the injured worker where
GOSI may have the right to suspend some entitlements if he fails to abide by such instruction.

Date of Determining Disability

The date on which the concerned medical board determines as the end of treating the injured
person and considering his condition stable or disable.

Assessing Disability Degree

It is determining the percentage of disability resulting in full incapability to work. It is a

percentage assessed by the medical committees in accordance with the disability which the
worker had sustained, whether it was physical, mental or psychological disability resulting from
the injury. This shall be on the basis of the disability percentage table.

Re-assessing Disability Degree

The insured person will be subject to periodical medical examination during the five following
years of providing the benefit where this period will be under re-assessment of disability degree
whether in increase, decrease or remain as it is. Assessing the degree of the disability
percentage shall be determined by the concerned medical committees according to disability
percentage table.

Complication and Recurrence

It is the return of injury symptoms which were in the process of healing or aggravation. This
shall be the bases on which the injured person have the right to be subjected once again for
examination in order to reassess the disability degree. Complications and recurrences shall be
considered an original occupational injury.

Daily Allowance for Injury

It is the cash amount payable to the insured person during the period of interruption of
employment as a result of the injury. It shall amounts 100% of the wage, or decreased to 75%
if he is under treatment paid by GOSI. This allowance shall continue to the date of recovery or
determining disability or death.

Lump Sum Compensation for Injury

Payment which is entitled to the injured insured person for one time in case of not meeting the
requirements of monthly benefit, whereas the disability percentage is 1% or more but not
exceed 50%.

Total Permanent Occupational Disability

Disability that prevents the insured person totally and permanently from pursuing any work or
job which provides with income, whereas such disability amounts 100%. This shall be estimated
by the concerned medical committees in GOSI.

Partial Permanent Occupational Disability

Disability afflicted by the insured person resulted from an occupational injury or disease, and
may lower his capability to earn his livings. This percentage may equal or exceed 50% to not
more than 100% and the benefit or compensation due may be estimated to this percentage or
the percentage of the total permanent disability benefit.

Non-occupational Disability The disability resulted from a disease or accident which may not
has been included under the description of an occupational injury. The concern medical
committees may estimate this disability whereas the injured person can not earn at least 1/3 of
his previous wage because of his medical condition whereas such condition may last for a period
no less than six months. The Injured

The insured person covered under the Occupation Hazards Branch (OHB) that was exposed to
an occupational accident or disease that were listed among the defined limited diseases with
mentioned terms opposite each disease.

Benefit

Due monthly payment payable to the injured person for the permanent total or partial disability
that the degree of such disability could reach the limit provided by the law (50% to 100%) or
payable to the survivors in case of death because of the injury when implementing OHB.

Assistant of Others

The amount added to the allowance which equals 50% of its value in cases insured person is in
need of assistant and help of others in regular basis to perform his daily live. The medical
committees shall determine wither the insured person needs such assistant and help, provided
that this shall not exceed SR. 3,500.

Pension
It is monthly payments payable to the insured person for reasons of retirement or non-
occupational disability. It is also payable to the survivors in case of death when implementing
Annuities Branch.

Refund Compensation

The amount payable one time to the insured person in case terms of pension entitlements are
not met.

Pension Calculations

The way which the pension is determined, by multiplying one fortieth of the average monthly
wage subject to contribution during the last two years of service by the number of contribution
years. The pension must be not exceed (100%) of that average.

Qualifying Age for Pension

It is the age of 60 that was determined by the social insurance law for the entitlement of
retirement pension so long the period of service required is available.

Discontinuing the Pension

Discontinuing pension made by GOSI for absence of payment conditions. The payment of
pension will resume when such lawfully conditions are satisfied.

Suspending Pension Payments

Temporary suspension of payable pension by GOSI due to the pensioner refused to comply with
the instruction issued to beneficiary, such as refusing to be re-examined to re-assessment of
disability or not fulfilling required procedures for payment. This shall be reactivated when such
procedures are met.

Basic Wage

It is the total income received by the mandated insured person as cash return for performing
the original duties whether they were strict to a period of time, outcomes or both. The basic
wage shall not include provided allowance according to the kind of job, level of hazard or place
of job, paid for additional working hours or for other reasons. Also, not including annual
bonuses, grants or other in kind benefits. The basic wage shall include commissions, percentage
of sales and profits whether the basic wage was limited to such additions or was added to a
steady wage.

Allowances provided to the insured person by the employer

This shall be cash housing allowance and in kind housing allowance. The cash housing allowance
is an estimated agreed amount between the employer and the insured person. On the other
hand, the in kind housing allowance which is subject to contribution deductions will be
estimated with what is equivalent to the basic wage for two months.

Occupational Hazards Branch Contribution

Amounts paid by the employer for all Saudi and non-Saudi workers on a 2% basis of monthly
wage applied to contribution. These payments shall be submitted to GOSI every month.

Insured Person

Every person covered under the social insurance scheme whether a man or a woman.

Establishment
Place where the employer conducts business or determine as a place of work. This place carries
the name of the employers, the trade name of the activity and the workers perform their jobs
whereas such workers are covered by the social insurance law.

Entitled Person

The remaining family member alive after the death of the insured person, pensioner or the
person whose was entitled to benefit. The family member that is considered by law to be
entitled to the pension includes:

a. The Son: son of the insured person as long as his age does not exceed 21
years. If he is studying, the age of entitlement shall continue to the age of 26 years,
there is no limit of age regarding the disabled son.
b. The Daughter: the daughter of the insured person until she is married.
c. The Brother: the full brother or the brother by father or by mother of the
insured person which was supported by the insured person to the date of the insured
person death under the same conditions of the Son.
d. The Sister: the full sister or the sister by father or by mother of the insured
person which was supported by the insured person to the date of the insured person
death under the same conditions of the Daughter.
e. The Father: the father of the insured person which was supported by the
insured person to the date of the insured person death, subject to that he is considered
unable to work or his age is above 60 years and is not in employment.
f. Sons and Daughters of the Deceased Brother: the sons and daughters of the
insured person’s son where their father has died while the insured person was alive,
subject to support conditions are available to the date when the insured person died
and under the same conditions of the Son and Daughter.
g. The Mother: the mother of the insured person, provided that she was
supported by the insured person.
h. The Widow: the wife or wives of the insured person upon the death of the
insured person the revocable divorced woman when the death of the insured person
was before the end of such applicable period. The widow is entitled even if she is in
employment under the social insurance law and she has the right to have both of
entitled pension as a beneficiary from her husband’s pension and her work income or
pension without any limitation.
i. The Widower: the man who his insured wife died if he is unable to work until
his disability recovers.
j. The Grandfather and Grandmother: shall be under the same conditions for the
Father and Mother.

Support

The family member shall be considered supported by the insured person or the pensioner if such
member is supported by the insured person in any basic living expenses.

Marriage Grant

The grant paid to the widow, daughter, son or sister entitled to a pension or allowance in case
of marriage for one time only. It shall amount 18 times of her/his share. Payment of this grant
will discontinue on the following month of the entitled person marriage.

Death Grant

Grant paid by GOSI equals three months of the entitled pension/benefit for a maximum of (SR.
10,000.00) and shall be due in the event of the insured person death for reasons of an
occupational injury, the death of a working insured person where such insured person has a
period of service entitling the survivors for pension or in the event of the pensioner death where
the pension was due for reasons of retirement or non-occupational disability.

Contribution share

Contributions which are lawfully paid by each of the employer and the insured person according
to the percentage rate determined by the law whereas the employer pays the total contributions
due to him and the insured persons working for him. The insured persons shares will be
deducted from their wages in the periods determined by law. The contribution share in Annuities
Branch is 18%, whereas 9% is paid by the employer and 9% is paid by the insured person, also
the contribution share in OHB is 2% paid only by the employer.

Insurance Card

Card provided to the insured person caring the registration number for social insurance
identification purposes that prove the insured person registration in the scheme.

Registration

It is the procedures done by GOSI for the implementation of the social insurance law regarding
registering employers and their insured workers.

Employer

Is any natural or legal person employing one or more paid workers, regardless of wage.

Objection

Statement of the employer, insured person, pensioner or the person entitled to benefit or
compensation, or any family member stating his/her un-convention of a decision made by any
authority in GOSI and claiming for reconsideration. Such action shall be submitted within the
determined period by law for this objection.

Contribution Number

It is the fixed registration number for the insured person in GOSI.

Insurance Entitlements

Benefits and advantages provided by the social insurance law due from GOSI to insured persons
or their family members provided that entitlement conditions are to be satisfied.

Primary Medical Board

Committee assigned by GOSI to discuss medical matters in accordance with the social insurance
law. Such board shall determine the disability degree, the disease caused by an occupation or
the status of non-occupational disability of the insured person. This board shall consist of at
least two physicians of whom one of them represents GOSI, if possible.

Appeal Medical Board

Committee formed of specialized physicians selected from high medical authority to renew
Primary Medical Board decisions for appeal cases in the event of objection by the insured person
of GOSI to decisions made by the later boards. The Appeal Medical Board shall consist of three
physicians minimum.

Inspector

Officer elected by GOSI authorized among its staff to inspect the implementation of the social
insurance law and procedures, such staff members are vested with legal powers in the limitation
of conducting their duties.

Procedures of Entitlements Payment

Family members of the insured person who had died in employment by reason of an
occupational injury are entitled, according to the Social Insurance Law implemented in the
Kingdom that was issued under the Royal Decree No. M/33 dated 03/09/1421 H., payment of
lump sum compensation for the injury sustained. In order for the General Organization for
Social Insurance (GOSI) to pay rightful entitlements, the following procedures are to be
completed:

1. Fill-out form (31/Annuities), sent by GOSI.

2. Provide the document or deed of entitled survivors, or a certified copy of this
document or deed.
3. Enclose marriage contract, for widow(s) of the deceased insured person
certified by official authority.
4. Enclosed birth certificate for sons and daughters of the deceased insured
person.
5. Enclosed birth certificate of brothers and sisters of the deceased insured person
if they were supported by the insured person at the time of his / her death.
6. School certificates of sons and daughters of the deceased insured person which
are still studying after they exceeded the age of 21 years.
7. If the insured person, prior to his / her death, was supporting his / her parents
or grandparents that were unable to work, GOSI should be provided with a certified
medical report from two physicians working in a government or university hospital
stating the concerned person medical condition and estimating his / her age, along with
explanation of the medical reasons of inability to work. In case they are above 60 years
of age, no reports are needed to be enclosed.
8. Provide a document or certificate issued by a legal court, notary public or
solicitor for each parent, grandparent, brother or sister if they were supported by the
deceased insured person at the time of his/her death.

Knowing that, claims for allowances after the expiry of one year shall not be accepted, also
claiming for the remaining benefits shall not be accepted after the expiry of five years from the
date on which the entitlement to benefit arises when implementing Article 57 of the Law. The
following should be taking into consideration:

1. All correspondence should be sent directly to the following address: General

Organization for Social Insurance, Riyadh Region Office, Overseas Benefits Department,
P. O. Box 2952, Riyadh 11461, Saudi Arabia.
2. Mentioning GOSI's social insurance number and the file number in all
correspondence sent to GOSI.
3. Information you provide in form (31/Annuties) and attached documents should
be true and identical to what has been mentioned above.
4. Certifying all documents from the Saudi embassy or consulate located in the
home country of the claimant.

5. Promptly sending requirements ensures speedup procedures of payment.

Frequently Asked Questions

What is the status of pensions and benefits previously paid before the
implementation of the new law?

The insured person or entitled family members receiving, as of the date of

implementing this law, due benefits or pensions shall be treated in accordance
with the social insurance law as follows:

1. If any pension or benefit received by the insured person is less than SR.
1,500, such amount shall be raised to this limit.

2. If such amount of pension or benefit divided after the death or the insured
person between survivors was less than SR. 1,500, such amount shall be raised
to this limit and shares will be recalculated in accordance to the new amount.

3. If any share of a family member is less than SR. 300, such amount shall be
raised to this limit, provided that the total shares of survivors do not exceed
the limit of SR. 1,500, per month or the average wage that pension or benefit
calculations were base on, whichever is the higher.
Implementing the previous paragraphs shall be on the first day of the
following months of putting the new law into force.

• Are there any specified dates for submitting claims for payments
of social insurance entitlements?

Claims for transportation, lodging allowances and deceased's family grant

shall not be accepted after the expiry of one year, and claims for remaining
benefits shall not be accepted after the expiry of five years from the date on
which the entitlement to benefits arises, unless there is an excuse accepted to
GOSI.

• Is the employer committed to pay compensation to the injured

insured person who suffered from an occupational injury, or to pay the
survivors for such injury?

Basically, GOSI is obligated to pay the lawful benefits to the insured person or
family members and the employer is not committed to pay unless the injury
occurred intentionally by the employer, due to an obvious mistake, not
complying to rules and regulations regarding healthy and safe working
environment.
In case this is proven correct, the insured person or entitled survivors may
return to the employer for any claims or rights given by Islamic Sari'ah or
other applicable rules implied in Saudi Arabia. GOSI will pay in any case all
the amounts of benefits and pensions due by law.

• What are the amounts payable to survivors of the insured person?

GOSI pays to survivors of the insured person a grant of three months to a
maximum of SR. 10,000 in any of the following cases:

1. In case of death of the insured person while performing his job and has the
qualifying period of service for pension.

2. In case of death of the insured person because of an occupational injury, or

in case of death of a person who was entitled a benefit for reasons of total or
partial permanent disability.

3. In case of death of retired pensioner or a pensioner for non-occupational

disability.

• Are there certain provisions regarding benefit payment under

OHB for non-Saudi?

For non-Saudi injured person, it has been decided by law to replace the right
of benefit payment with a lump sum compensation payment. There will be no
right to apply for another payment after that. This shall be done according to
the following rules:

1. In case the injury resulted in 100% total disability to the insured person,
such person shall be entitled to a lump sum compensation amounting 84
months of the benefit amount to a maximum of SR. 330,000. For example, the
wage of that insured person is SR. 4,000 and received a disability percentage
of 100%, the compensation shall amount: 4,000 x 84 = SR. 336,000. Whereas
this amount has exceeded the maximum limit provided by law, this amount
shall be reduced to SR. 330,000.

2. If disability degree is (50% - 99%), partial disability, the lump sum

compensation shall amount 66 months of the benefit amount to a maximum of
SR. 165,000. For example, the insured person’s wage is SR. 2,000, and has a
disability degree of 55%, the compensation shall amount: 2,000 x 55 x 60 =
SR. 66,000.

3. In case of the insured person died while performing his job because of an
occupational injury, his survivors shall receive lump sum compensation equals
84 months and will be divided equally.
Note that lump sum compensation payment ends all right for the insured
person or survivors due from GOSI, taking into consideration that such
payment shall not exceed, in this case, the sum of SR. 330,000.

• It has been mentioned many times the words “benefit” and

“pension”, what is the deference between them?

The pension is the amount which is paid monthly under Annuities Branch,
while the benefit is paid monthly under OHB. Pension and benefit can be
added together.
• What happens in the event of discontinuing one of the survivors
share?

In case of suspending a share of one family member for any reason – such as
death, reaching the maximum limit for entitlement for boys, marriage of girls
– this share shall be divided to the remaining survivors, provided that the total
shares do not exceed the average wage which calculation basis of the benefit
were built upon or the amount of SR. 1,500 for each share.

• When does the injured insured person’s family members are

entitled to payment of their benefits in case the injured person died, and
what are their shares?

In case of the death of the injured person who was entitled to a partial or total
disability benefit, or in the event of the insured person death while working as
a result of an occupational injury, the survivors are entitled to the following:
-Full benefit, in case the survivors are three persons or more and shall be
divided equally.
-75% of the benefit, in case the survivors are two persons and shall be divided
equally.
-50% of the benefit, in case there was only one survivor.
Provided that the share of any survivor shall not be less than SR. 300 and the
total shares do not exceed the average wage which the basis of calculation of
the benefit was built upon, or SR. 1,500 per month, whichever is higher. If the
total exceeds this amount, each share of survivors shall be deducted equally to
any of the said two limits.

• What happens if the injured person that was entitled an allowance

or benefit before he had suffered a new injury?

Determining the status of the insured person who was entitled to a benefit for a
partial disability that had suffered a new injury as follows:

a. In case the person who was entitled to a benefit for a partial disability had
suffered a new injury resulting in a degree of disability, the injured person
shall be entitled to a new benefit calculated an the basis of the total injuries
sustained by this person, i.e. total percentage of the disabilities, provided that
the total does not exceed 100% of disability. The benefit shall be calculated on
the basis of the average wage of the first injury or the previous average wages
of the month prior the second injury, whichever is higher.

b. In case the injured person received lump sum compensation and had
suffered from another injury resulting in a disability degree, whereas the total
percentage became 50% or more, the injured person shall be entitled to a
benefit according to what has been mentioned previously, with deducting the
previous compensation amount on a 36 regular basis. Collecting such
deductions shall stop in case of discontinuing benefit payment or death of the
injured person.

c. Degree of disability resulting from different injuries shall be added together

even without such addition the injured person may not be entitled to pension,
whenever this may increase the amount of lump sum compensation.

• What does the injured Saudi and non-Saudi insured person

entitled to if the degree of disability was less than 50%?

If the disability degree for an injury is less than 50%, the insured person is
entitled to a lump sum compensation equals 60 times the monthly benefit for
partial disability, whereas the age of this insured person did not exceed 40
years at the date when the injury occurred.

Example: (age 39 – disability degree 32%), for this case, if the average wage
is SR. 1,000, the lump sum compensation shall be:
32 x 1000 x 60 = SR. 19,200

If the age was more than 40 years, the compensation shall be decreased to the
number of monthly benefit equivalent to the number of years which are above
40. If we assume in the previous example that the age of the insured person is
47 years, the compensation shall be decreased 7 times the monthly benefit:

32 x 1000 x 53 = SR. 16,900

Provided that the compensation shall not be less than 36 times the monthly
benefit and does not exceed the amount SR. 165,000. For the interest of the
insured person, the fraction of any year shall be considered as a whole year if
such fraction year has completed six months or more. Fewer fractions shall be
discarded.

• What can disabled injured person receive when the assistant of

other is needed to perform daily affairs?

If the concerned medical committee decided that there is a need for the injured
person to be assisted by other to do his daily affairs, such injured person shall
has the right to have the assistance of others benefit by 50% of that allowance
to a maximum of SR. 3,500 per month.

• What is the meaning of the average wage where the benefit is

calculated on its basis, and what is considered if the injured person did
not has the required period of service with the employer which the injury
occurred while working there?

Average wage which the benefit is calculated upon means the total wages
applied to contribution paid in the last three previous months at the time when
the injury had occurred. If the injured person did not work at all or had worked
for part time for the employer which the injury occurred while working there,
the average wage will be calculated by taking one third of the total wages that
could have been contributed if the injured person would have worked on the
same conditions for the last employer for a period of three months taken into
consideration when calculating the benefit.

• When does the right for daily allowance payments end?

1. The injured person’s right for payment of daily allowances end in the
following cases:

a. In the event of the injured person has gain the ability to work and
completely recovered from the injury. This shall be determined by a decision
from the treatment body or the concerned medical committee.

b. When the concerned medical committee decided to end the medical

treatment for the injury person after discharge from the hospital and his
condition became stable with a result of permanent disability sustained by that
person, whether it is partial or total disability.

c. In case of the insured person death.

2. The right to be entitled to daily allowance does not end in case the work
relationship had been terminated or suspended for any reasons.

• When does payment of daily allowance for an injured person may

be suspended?

It is permitted by law to suspend the allowance when the injured insured

person refuses to comply with the medical instructions which is required for
such cases or has refused to be presented to a medical examination. This shall
be made by a decision of the director of the concerned field office and must be
on the bases of a medical report from the treatment party or GOSI physician.

• Is it allowed to combine daily allowance with wage along with

benefit?

The law does not allow the injured person to combine the daily allowance with
the wage. In case it has been found that the injured person had worked for a
wage, whatever it amounts during such period the injured person was paid the
allowance, GOSI shall has the right to redeem what the injured person has
gain unlawfully.
However, it is allowed to combine daily allowance with due benefit from a
previous injury sustained by the injured insured person.

• What is the cash value that is received by the injured person

during the period of temporary inability to work?

a. In case the injured person is temporary disable from work caused by an

occupational injury reported during applicable time frames, the injured person
is entitled to a daily allowance for each day including weekends and official
holidays in such period of disability to work. GOSI shall pay this sum which
amounts 100% of the wage applied to contribution and may be reduced to
75% for all the period of hospitalizing the injured person as an inpatient in any
medical center or hospital.

b. Determining temporary disability is made by a medical report issued from a

specialized medical body, provided that the person who shall be assigned for
an allowance will be presented for a medical examination by a committee or
physician whenever the concerned medical committee in GOSI asks for.

• What are the benefits entitled to the insured person who was
injured?

There are two kinds of benefits:

a. Benefits in kind: include medical care for deferment cases that may be
needed in an injury.

b. Cash compensation: includes the following entitlement:

1. Daily allowances for temporary disability to work when the injured person
has become disabled temporarily as a result of the injury.

2. Monthly benefits and lump sum compensation for total or partial permanent
disability resulting from an injury.

3.Monthly benefits for the family members of the deceased insured person.

4. Grant to the family of the deceased insured person or the family of the
insured person who was entitled to a benefit in case of his death.

• What is the definition of the occupational injury in the law?

In Article 27 of the law, the occupational injury is defined as:

1. Any accident suffered by the insured person during performance or by

reason of work shall be considered an employment injury.

2. They shall also be considered an employment injury any accident suffered

by the insured person 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.The same shall also apply to accidents suffered by the insured person during
movements he makes for the purpose of doing an assignment required by the
employer.

4. The diseases established to be caused by work shall be considered as

employment injury.

• What is the contribution portion in OHB by law?

It is mentioned in Article 18 of the law that OHB percentage of contribution is
2% of the applicable wage paid by the employer only.

• To who does Annuities Branch is compulsory applied?

Annuities Branch is compulsory applied to Saudi workers whom are working

under Labor and Workers Law and working in state and Simi-state bodies on
wage provisionally.

• To who does OHB is applied by law?

OHB is compulsory applied to all Saudi and non-Saudi workers.

• Who are the family members that are entitled by law for payment?

Article (2/8) of the law specified the family members and qualifying conditions for
entitlement in the following cases:
1. "Widow of the deceased insured person" is the wife of the deceased insured
person at the time of his death.

2. "Widower of the deceased female insured person" is the one whose insured wife
died and is suffering an earning incapacity for as long as he is incapacitated . He is
deemed to be legally incapacitated if, upon the death of his wife, he was over sixty
years of age and unemployed.

3. "Sons" are the sons of the deceased insured person who are under twenty one
years of age until they complete such age, which age limit is extendible to twenty six
if they are pursuing their studies in an educational or vocational institution, and no
age limit is set as long as they are suffering an earning incapacity by reason of
chronic disease or infirmity

4. "Daughters" are the daughters of the deceased insured person until they marry.

5. "Grandsons and grand-daughters" are those whose father (the son of the insured
person) died during the lifetime of the insured person, subject to the same conditions
prescribed in respect of the sons and daughters, provided that they have been
supported by the insured person until the date of his death.

6. "Father" is the father of the deceased insured person who was supported by the
insured person until he died, provided that he is suffering a loss of earning capacity,
and he shall be deemed to be legally incapacitated to earn if he was over sixty and
not working at the time of the death of his son.

7. "Mother" is the mother of the deceased insured person who was supported by the
insured person until the date of his death.

8. "Grandfather" and “Grandmother” is the grandfather and grandmother of the

deceased insured person who were supported by the insured person until the date of
his death, subject to the same conditions applicable to the father and mother.

9. "Brothers and sisters" are the brothers and sisters of the insured person subject to
the same conditions provided for in respect of the sons and daughters so long as they
were supported by the insured person until the time of his death.

• What is the meaning of the word “insured person” mentioned in

the Law?
 The insured person is any person covered under the social insurance law, whether a
man or a woman. He/she may be registered voluntarily or compulsory.

a. The compulsory insured person is any worker has had contractual relationship
with one employer or more 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, performing such job must
be mainly inside the Kingdom. Only the Saudi worker may perform such duties
outside the Kingdom for an employer that has a main office inside the Kingdom. The
latter worker is subject to Annuities Branch Coverage only.

b. Voluntary insured person are Saudis permitted by law to have the right to benefit
from Annuities Branch, such as free lancers, self employed persons, person
corporation with others in a commercial, industrial or agricultural activities, or in
services fields or craftsmen. Also, Saudi workers who work abroad without any work
relation with an employer who has a main office inside the Kingdom or persons who
their contributions in Annuities Branch had stopped and wishes to continue
registration.

Source : http://www.gosi.gov.sa