DECISION OF THE MINISTER OF LABOUR AND SOCIAL AFFAIRS NO. 128/INSURANCE DATED 25/10/1421 H.

THE MINISTER OF LABOUR AND SOCIAL AFFAIRS, Having reviewed the Social Insurance Law issued under Royal Decree No. M/33 Dated 03/09/1421 H; Having reviewed the old Social Insurance Law Implementing Regulations constituting the rules and procedures for registration, assessment and collection of contributions, survey of establishments, submission of appeals, rules and procedures for application of the Annuities Branch, rules and procedures for application of the Occupational Hazards Branch, rules and procedures for regulating the activities of the inspection agencies and rules and procedures for the medical board membership, issued by the Decisions of the Minister of Labour and Social Affairs No. 2/Insurance dated 11/9/1392 H, No. 15/Insurance dated 28/1/1395 H, No. 19/Insurance dated 7/11/1395 H, No. 61/Insurance dated 6/4/1402 H, and No. 104/Insurance dated 13/3/1411 H, respectively, and the relevant amending decisions; As the new Law demands issuance of new implementing regulations taking into consideration the new and revised provisions thereof; and pursuant to the Decision of the Board of Directors of the General Organization for Social Insurance No. 735 dated 25/10/1421 H. concerning the Regulations it has adopted in substitution for the said old Regulations, DECIDES AS FOLLOWS: ARTICLE (1) For the purposes of application of the provisions of the Social Insurance Law issued under Royal Decree No. M/33 dated 03/09/1421 H. the following Regulations attached hereto shall be put into effect:
1. Registration and Contribution Regulations 2. Annuities Branch Benefits Regulations 3. Occupational Hazards Branch Benefits Regulations 4. Medical Board Regulations

ARTICLE (2) For the purposes of definition of the terms set out in the Regulations mentioned in the preceding Article, they shall have the meanings provided for in Article (2) of the Law and in the said individual Regulations in addition to the meanings of the following terms: 1. New Law : The Social Insurance Law issued under the Royal Decree No. M/33 dated 03/09/1421 H.

2. Old Law : The Social Insurance Law issued under the Royal Decree No. M/22 dated 06/09/1389 H. ARTICLE (3) The provisions of these Implementing Regulations be considered as supplementing, explaining and elaborating the provisions of the Law. ARTICLE (4) 1. The Governor of the General Organization for Social Insurance may amend the forms incorporated in the Regulations attached hereto and issue such other forms as he may deem necessary. He may also explain or detail any of the provisions of the said Regulations. 2. The Governor may delegate some of his powers provided for in the attached Regulations to such officials of the Organization as he may designate. ARTICLE (5) 1. In application of the provisions of paragraph (2) of Article (68) of the Law, the Regulations Implementing the old Law issued by the Ministerial Decisions referred to in the preamble of this Decision shall become null and void. 2. The previously issued decisions concerning special handling of certain cases of employers and insured workers shall remain valid, provided that they do not contradict the provisions of the Law and the Regulations attached hereto. 3. the decisions already issued in respect of the work organization and procedures shall remain valid so long as they do not contradict the provisions of the said Law and Regulations until they are amended or replacement decisions are issued. ARTICLE (6) This Decision and the Regulations attached hereto shall be published in the official gazette and shall take effect on and from the date on which the Law is put into effect, and the Governor of the General Organization for Social Insurance shall take the measures necessary to give effect thereto.

Ali I. Al-Namlah Minister of Labour and Social Affairs REGISTRATION AND CONTRIBUTION REGULATIONS CHAPTER I INTRODUCTORY PROVISIONS ARTICLE (1) For the purposes of definition of the terms set out in these Regulations, they shall have the meanings provided for in paragraph (2) of the Social Insurance Law and Article (2) of the Decision of the Minister of Labour and Social Affairs No. 128/Insurance dated 25/10/1421 H (20/01/2001 G) issuing the Regulations in addition to the following:

1. The term "employer" means any natural or legal person employing one or more compulsorily covered workers under a contract regardless of its period, nature or form in consideration of a wage. 2. The term "establishment" means the legal entity through which the employer conducts his activity and which bears his name or the commercial name of such activity. 3. The term "branches of the employer" means the various premises through which the employer conducts one activity. 4. The term "employer's registration number" means the number of registration of the employer or his branches with the Organization. 5. The term "insurance number" means the permanent number of the insured person’s registration with the Organization. 6. The term "insurance card" means the card issued by the Organization to the insured person on his registration for the first time and which bears his permanent insurance number. 7. The term "contribution month" means the Hijrah or Gregorian month for which contribution is payable in accordance with the calendar followed by the employer. 8. The term "contribution year" means the year for which the contribution is payable and which starts from Moharram or January according to the calendar used. 9. The term "basic wage" means the amount received by the insured person, who is compulsorily covered under the Law, in consideration of his work by virtue of a written or unwritten contract regardless of the method of payment or computation of such wage, less the allowances that may be granted according to the work nature, risk or place or for overtime working hours or for any other reasons no matter under whatever titles they are granted for, and less the grants, annual bonuses and benefits in kind. There shall be considered as basic wage the commission, the percentage of the sales value, and the percentage of the profit notwithstanding that it may be paid alone or in addition to a fixed wage. 10. The term "contributory wage" means the wage of the compulsorily insured

worker according to which the monthly contribution is payable under the provisions of Article (16) of these Regulations. 11. The term "income category" means the monthly amount chosen by the voluntarily covered person from among the income categories included in Schedule No. (1) attached hereto and taken as a basis for the computation of the amount of the monthly contribution payable by him and the amount of benefits he may be entitled to, and it shall be regarded the same as the contributory wage in respect of the compulsorily covered person. 12. The term "insured person’s share" means: a. the contribution payable by the compulsorily covered person for each contribution month by deduction from his wage provided for in paragraph 2(a) of Article (18) of the Law, or b. the contribution payable by the voluntarily covered person for each contribution month provided for in paragraph (1) of Article (8) and paragraph 2(b) of Article (18) of the Law. 13. The term "employer's share" means the contribution payable by the employer on his insured worker's account for each contribution month in accordance with the provisions of paragraphs (1) and 2(a) of Article (18) of the Law. 14. The term "period of delay" means the number of the months of delay starting with the day immediately following the fifteenth day prescribed as the time limit for payment of contributions and ending with the day of actual payment thereof, counting each fraction of a month as a complete month. 15. The term " fines for delay " means the amounts the employer or voluntarily insured person is liable to pay for the periods of delay in payment of the monthly contributions.

ARTICLE (2) With due regard to the successive stages of implementation of the Law and the requirements of application of the Law and its Implementing Regulations, the Occupational Hazards Branch shall apply to the Saudis and non-Saudis, but the Annuities Branch shall apply to the Saudis only. Application shall be compulsory or voluntary, as applicable, subject to the following details: 1. Compulsorily covered persons: a. The workers who have had contractual relationship with the employer 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, provided that the worker shall be under 60 Hijrah calendar years on the starting date of coverage under the Annuities Branch, with due regard to the provisions of paragraph (2) of Article (4) of the Law. Under this meaning, the trainee shall not be considered a worker unless his training is intended for apprenticeship.

b. The Saudi worker who works abroad for an employer who has a head office within the Kingdom shall be covered under the Annuities Branch so long as a work relationship is established to have been existing between the worker and the employer. c. The employees of the State bodies and semi-State bodies who do not benefit from the Civil or Military Retirement Schemes.

2. Voluntarily covered persons: are the Saudi nationals belonging to the following categories: a. The persons engaged in liberal professions such as physicians, engineers, lawyers, consulting office owners, etc. subject to obtaining from the appropriate authority a license to practice their professions. b. The persons who conduct, for themselves, or in partnership with others, a commercial, industrial, agricultural or service activity and are established, from the respective commercial register or license or any other document issued by the appropriate authorities, to have been exercising such activities. c. Tradesmen who exercise their trades by virtue of a license issued by the appropriate authorities, such as blacksmiths, carpenters, plumbers, and the like. d. The workers who are employed abroad but have no work relationship with an employer who has a head office within the Kingdom, provided that a certificate showing his engagement in employment and duly attested by the Saudi Embassy in the country of residence is submitted. e. The insured persons whose compulsory coverage under the Annuities Branch has ceased due to their departure from the scope of compulsory coverage and have expressed their wish to continue their membership in accordance with the provisions of Article (8) of the Law. f. The Saudi citizens working in foreign international or diplomatic or military missions in the Kingdom may, if not compulsorily covered, demand voluntary coverage under the Scheme, in which case, they shall be treated the same as the categories provided for in paragraph (4) of Article (4) of the Law. 3. Excepted Categories: a. Government employees including the civil servants and military personnel who are covered under the relevant retirement schemes, and this exception does not involve the retirees who satisfy the conditions for coverage under the Scheme. b. Foreign employees working in foreign international, diplomatic or military mission: They are meant to be the non-saudi employees or workers who work in any of these missions notwithstanding that the worker and his employer may not have the same nationality. c. Workers employed in agricultural, forestry or pastoral works: They are meant

to cover any one engaged in forests or land farming, crops watching or agricultural machine operating and servicing. This exception does not apply to the following categories of workers who are engaged in such activities: 1. The workers who are employed in the agricultural enterprises that manufacture their own products. 2. The workers who are subject to the Labour and Workmen Law. 3. The workers who are employed in state bodies and semi-state bodies. 4. The workers who are employed in the companies established in accordance with the Companies Act or Foreign Capital Investment Law. 5. The workers who are employed in private establishments, which employ twenty or more workers. d. The seamen who are employed on board of transporting or fishing ships. This exception does not apply to the following categories of workers who are engaged in such activities: 1. The workers employed in the premises of an employer who has taken the sea or fishing works as his own trade; and in case any of such workers is transferred from the employer's premises to the sea activities of the same employer, he shall continue to benefit from the Law so long as it is applied to him. 2. The seamen who are employed in marine establishments that manufacture whatever is fished by their own ships; and the Governor shall explain the meaning of manufacturing intended by this provision. 3. The workers who are subject to the Labour and Workmen Law. 4. The workers employed in state and semi-state bodies. 5. The workers employed in companies established in accordance with the Companies Act or Foreign Capital Investment Law. 6. The workers employed in private establishments which employ twenty or more workers . e. The domestic servant who is meant to be the domestic worker employed exclusively in domestic service. f. Foreign worker who is brought into the Kingdom to carry out works which usually take no more than three months to complete, such as visiting physicians, consultants and the like. g. Artisans who are self-employed, employ no workers and take their homes as their business premises. h. Employer's family members who work in the family firms employing no other workers and are taken to mean the family members provided for in paragraph (8) of Article (2) of the Law.

The excepted categories in paragraphs (g) and (h) may request voluntary coverage provided for in Chapter V of these Regulations. The exception pertaining to the categories mentioned in items (c), (d), and (e) above shall not prejudice their future coverage under the Law in accordance with the provisions of paragraph (2) of Article (5) of the Law.

CHAPTER II
REGISTRATION ARTICLE (3)

1. The following forms shall be used for the registration of the nongovernment sector employers and their workers: a. Form No. 1/Insurance for registration of an employer with the Scheme. b. Form No. 2/Insurance for listing of workers employed by an employer. c. Form No. 3/Insurance for entering and leaving employment by a Saudi worker. d. Form No. 4/Insurance for payment of contributions. e. Form No. 5/Insurance for entering and leaving employment by all workers of an employer during the month. 2. The workers in the government sector shall be registered in accordance with the decision of appointment and shall be excluded in accordance with the decision of termination. 3. The registration of the voluntarily covered persons shall be done by the use of Form No. 7/Insurance for application for coverage under the Scheme by the categories mentioned in paragraph (4) of Article (4) of the Law or for application for continuation of coverage under the Annuities Branch pursuant to the provisions of Article (8) of the Law. ARTICLE (4) 1. The Governor may except some employers from using all or part of the forms prescribed in the preceding Article and permit them to have them replaced by alternative forms so long as that better serves the Organization work system, particularly the automated methods of preparing employer's accounts. 2. The Governor shall prescribe the formats and descriptions of the forms and certificates provided for in these Regulations and the terms and conditions of use and times of submission thereof. ARTICLE (5) The Organization shall print the forms provided for in these Regulations and distribute them for a payment to be determined by the Governor or otherwise free of charge in such cases as may be determined by the Governor. Nevertheless, employers may, by Governor's approval, print all or some of these forms at their own expense, but only in such quantities as are necessary for their own use, and in no circumstances may an employer or any other

person print such forms for the purpose of trading in or selling them to others except by the consent of the Governor. In all cases, the forms printed by employers shall include the same particulars as those on the forms approved by the Organization and be of the same specifications as to size, colour and spacing and include reference to the number and date of the Governor's approval of printing thereof. ARTICLE (6) If an employer has numerous branches or activities, he shall be treated in accordance with the following rules and procedures : 1. For the purposes of determination of the starting date of coverage of each of the employer's activities: a. In case of various employer's activities of which each is founded according to the applicable laws and has a legal entity and independent financial liability, any of the activities separated from the others shall be treated as an independent employer, notwithstanding that the proprietor of such activity is the same proprietor of the other activity or activities. b. In cases other than that provided for in the preceding paragraph, all employer's activities and branches shall be considered an integrated unit so long as the proprietor of each activity or branch is the same proprietor of all the other activities or branches. 2. For the purposes of submission of forms and payment of contributions: a. If the employer has numerous branches of the same activity, the group of branches falling within the jurisdiction of one office shall all be treated as one employer. However, each of the branches falling within the jurisdiction of various offices, shall be treated as an independent employer. b. If the employer has various activities of which each has its own independent financial entity, each activity shall be considered as an independent employer, notwithstanding that such activities fall within the jurisdiction of one office. However, if any of such activities has no independent financial entity, it shall be treated in accordance with the provisions of the preceding paragraph. c. The Governor may, for the purpose of maintaining the work interest, consider the branches or activities of the employer as an integrated unit in their dealings with the Organization or accept centralized payment of contributions for all branches and activities through the head office or decentralized payment through each of the various branches of activities, or centralized payment for some of them and decentralized payment for the others, so long as that facilitates dealing with the employer and does not contradict the work interests of the Organization. ARTICLE (7)

The Organization shall maintain a full register of the employers and shall update the same regularly. To do so, the Organization may conduct a comprehensive field survey or inspection of establishments in all parts of the Kingdom, have access to the data available at all state bodies, semi-state bodies and chambers of commerce and industry and avail itself, as necessary, of the services of the administrative bodies. The Governor shall set the procedures for the implementation of the provisions of this Article. ARTICLE (8) 1. The employer shall submit the duly completed forms required under these Regulations within the prescribed time limits, and failure in doing so shall justify the imposition of the penalties provided for in Article (62) of the Law. 2. The Governor, if he is satisfied as to the reasons of delay in submitting the said forms, may excuse such delay and may, on the initial implementation of Law, extend the time limit prescribed for the submission of such forms. ARTICLE (9) 1. Subject to such decisions as may be issued, every employer to whose establishment the Law applies shall present to the Organization's Office, within which jurisdiction his establishment head office falls, the following: a. An application for registration of his establishment on Form No. 1/Insurance for the head office of the establishment and a separate one for each branch or activity treated as an independent employer, and such application form shall be submitted to the Office, within which jurisdiction the premises of such branch or activity falls, within two weeks at the most from the date on which the head office of the establishment meets the requirements of coverage under the Law. b. The required data in respect of his workers which shall be given on forms 2, 3 and 5/Insurance, as applicable, associated with a copy of an official document confirming the date of birth or a copy of civil status identification card for the Saudi workers or a copy of the passport for the non-Saudi workers, as applicable, and such forms shall be submitted along with the form for registration of establishment referred to in paragraph (a) above, or within the first fifteen days of the month immediately following the first month for which contributions become payable, in which case the said forms shall be associated with the contribution payment cheque and Form No. 4/Insurance. 2. The employer shall, after the registration of his establishment and workers in accordance with the provisions of paragraph (1) of Article (9) of these Regulations, do the following on timely basis: a. To notify the appropriate office of any new worker who enters employment provided that the notification shall be effected within the first fifteen days of the month immediately following the month in which the worker has entered employment. Such notification shall be made by completing Form

No.3/Insurance or 5/Insurance, as applicable, associated with a copy of the documents referred to in the preceding paragraph 1(b) together with the contribution payment cheque or voucher. b. To notify the appropriate office of any worker who leaves employment, within the time limit prescribed for payment of the contributions due for the month of leaving employment, and such notification shall be made by completing Form No. 3/Insurance or 5/Insurance, as applicable. The notification shall be sent to the appropriate office together with the other forms concerning the insured workers who are still in employment, accompanied by the payment cheque or relevant supporting document. 3. The worker shall have the right to notify the appropriate office of his entry into employment and request for registering him, if the employer fails to do so, provided that such notification shall be made within the fifteen days immediately following the time limit prescribed for the employer to register his workers provided for in the preceding paragraphs 1(b) and 2(a), as applicable. The appropriate office shall, in this case, force the employer to register such worker, so long as he has met the requirements of his registration. ARTICLE (10) The employer shall notify the office of the Organization of any changes in the nature, legal status, or address of the activity he practices or in the competent staff signatures or of loss or replacement of stamps, otherwise the employer shall bear the consequences of failure to notify or delay in doing so. Such notification shall be effected within two weeks from the date on which such changes have occurred. ARTICLE (11) 1. The offices of the Organization shall register the employer and notify him of his registration number within two weeks from the date of submission of the relevant forms. 2. The offices of the Organization shall issue numbers to the insured persons upon their registration with the Organization for the first time, and the insurance numbers thus allocated shall be permanent throughout their period of membership in the Scheme. A new member may not be allotted an insurance number previously allotted to another insured person who has left service for any reason. 3. Employers shall maintain their registration numbers and their workers' insurance numbers and quote such numbers on all correspondence concerning the application of the provisions of the Law. ARTICLE (12)

1. The offices of the Organization shall issue an insurance card for each insured person upon his registration for the first time, and this card shall contain the following particulars: - Full name of the insured as per the official document used for his registration. - Insurance number. - Such other information as the Organization may deem necessary to be included in the card. 2. Such card shall be sent to the employer for whom the insured person is working at the date of registration for delivery to the respective insured person. If the employer fails to deliver an insured person’s card, he shall return the card to the office which shall attempt to make the delivery thereof. The card may also be delivered directly by the Organization to the respective worker. The voluntary contributors shall receive their cards in person from the office. 3. The contributor shall preserve his contribution card in good condition, and he shall produce it to any employer for whom he works and take it back after it has been duly noted by the employer. The contributor, or his family members in the event of his death, shall quote the contribution number on all correspondence related to any issues pertaining to the application of the provisions of the Law. 4. If a contributor loses his contribution card, he shall immediately report the loss to the office of the Organization which issued the card, and the office shall issue a replacement, in which case the Organization may charge for the replacement a fee to be determined by the Governor's decision. ARTICLE (13) 1. The Organization shall grant every employer, upon his request, a certificate evidencing his registration with the Scheme, and this certificate shall be prepared in accordance with the form made for this purpose and shall not be regarded as valid unless it bears the official stamp of the Organization. 2. Where an employer has more than one branch or activity and each branch or activity is to be dealt with as an independent employer as provided for in Article (6) of these Regulations, a separate certificate shall be issued for each branch or activity and one certificate shall be issued to any group of branches or activities considered to be one employer. As an exception to this provision, if the branches or activities are owned by one natural person or are financially dependent on one legal person, the certificate shall not be issued to any of such branches or activities unless the said employer has discharged all his obligations pertaining to all such

branches or activities notwithstanding that any of them may be treated as an independent employer for the purposes of payment of contributions. 3. The certificate referred to above shall not be issued or renewed until the employer submits the required forms and discharges all his obligations towards the Organization as of the date of issue of the certificate. 4. Where the conditions for application of the Law to an establishment of an employer have not been fully satisfied yet, the respective employer may obtain a certificate to this effect from the Organization. 5. The certificates referred to in the preceding paragraphs shall be valid for the period and according to the conditions set out in each certificate. 6. The said certificates shall be considered as official government documents that are absolutely forbidden to be printed, or falsified or modified by addition or deletion or by fraudulent alteration of the contents thereof otherwise they shall be considered as null and void. Nor may they be used for purposes other than those for which they are issued in accordance with the provisions of the Law. ARTICLE (14) The insured person may request a statement of his period(s) of contribution to the Scheme. Any of his family members may also request such statement in the event of his death. In all the foregoing cases, the statement shall be given free of charge. Such statement shall only be valid for the purpose for which it is issued, without having any other consequential liabilities towards the third party. The issuance of this statement shall not prejudice the Organization's right to make such changes in the information included in the certificates as it may deem necessary on the basis of the revealed events. ARTICLE (15) 1. In the event of expiry of the time limits given to the employer to register his workers or to the worker to apply for registering himself if the employer fails to register him, retroactive registration of such worker may only be effected by the Governor's approval subject to meeting the following requirements : a. The fulfillment by both the employer and the worker of the conditions of compulsory coverage under the Law during the period required to be registered on the basis of such documents as may be satisfactory to the Organization. b. The required contributions shall be paid for the period for which a retroactive registration is required on the basis of contributory wages that are comparable with the wage recorded at the Organization for the same insured person for a former or subsequent period, with due regard to the wages listed in the Schedule of the income categories attached to the Regulations. For this

purpose, the contributory wage taken as a basis for payment of contributions due for the said period shall be determined as follows: 1. If the period required to be recorded is subsequent to a period already recorded at the Organization , the contributory wage for the first year required to be recorded shall be the income category that is immediately higher than the last wage recorded at the Organization, and it may be graduated upward for the next one or more years of the period required to be recorded, with due regard to the order of the graduated income categories shown in the said Schedule. 2. If the period required to be recorded is earlier than a period already recorded at the Organization, the contributory wage for the last year required to be recorded retroactively, shall be the income (wage) category immediately lower than the first wage recorded at the Organization, and it may be graduated downward for the next one or more years of the remaining portion of the period required to be recorded, on the basis of the order of the income categories shown in the said Schedule. In exception of this provision, the recording of wages specified by the employer for periods not already recorded shall be accepted, if such wages exceed the wages prescribed in the said schedule of income categories (1). 3. If the period required to be recorded falls between two periods already recorded at the Organization, the contributory wage for the last year required to be recorded , shall be the category immediately lower than the first wage recorded at the Organization for the subsequent period already recorded, then it is graduated downward for one or more years of the remaining portion of the period required to be recorded in the manner provided for in paragraph b(2), provided that the lowest wage reached by such graduation shall not be smaller than the last wage recorded at the Organization for the period preceding the period required to be recorded. 4. If an applicant for retroactive recording of an employment period has not been previously covered under the Scheme and is required to be registered for the first time, his contributory wages shall be determined on the basis of the last contributory wage fixed by the employer for the last year of the period required to be recorded, and the wage shall be graduated downward for one or more years of the remaining portion of the period from the immediately lower income category in the order shown in the said Schedule. 5. The Governor shall set such examples and details as may be required for the application of the provisions of the preceding paragraphs (1). 6. As an exception to the provisions of the preceding paragraphs if an employer applies, for the first time, for retroactive registration of his establishment with effect from the date on which the requirements of coverage of both his establishment and workers under the Law are met, his workers shall be registered on the basis of such wages as the employer may specify if they exceed the wages prescribed in the schedule of income categories(1).

c. The fines for delay shall be paid to a maximum of 100% of the due contributions subject to the following exceptions : 1. Fines for delay with no maximum shall be imposed on the employer who is discovered to have deducted the worker's share of contributions and retained it without delivery of the same to the Organization due to his failure to register the worker. 2. Where the establishments that take the initiative to apply for registration, and they and their workers have accordingly become covered for the first time and it has been discovered that both the establishments and their workers should be retroactively covered, they may be exempted from all or part of the additions for delay in accordance with the provisions of Article (30) of these Regulations. d. A period recorded on retroactive basis shall remain pending until the contributions and fines are paid in full subject to the maximum limit, provided that payment is made within three monts from the date of notification of the employer and the insured person of the due amounts. The Governor of the Organization may, for justifiable reasons, extend the time limit by such period and he may deem appropiate. the Organization shall have the right to claim full payment of the due fines for delay in the event of failure to pay the same within the prescribed time limit (1). 2. The provisions of the preceding paragraphs shall not prejudice the Organization's right to impose the penalties provided for in Article (62) of the Law on the employer who violates the provisions of the Law and Regulations thereof by his failure to record the full period of employment or register the worker. 3. The provisions of this Article shall take effect in respect of the compulsory contributors and shall apply to all applications for the recording of contribution period on retroactive basis which are produced to the Organization Offices after the introduction of these Regulations or before the introduction thereof but have not been decided on yet (2).

CHAPTER III
RULES FOR ASSESSMENT OF CONTRIBUTIONS ARTICLE (16) The earnings which shall be subject to deduction of contributions provided for in Article (18) of the Law shall be those amounts received by the insured worker for his work, provided that such amounts are included in the following categories and are not exceeding the sum of SR 45,000 (forty five thousand Saudi Riyals) per month: a. The basic wage provided for in paragraph (9) of Article (1) of these Regulations whether paid monthly, weekly, daily or by piece or according to number of work hours or amount of production. b. Housing allowance paid in cash according to the amount agreed to between the employer and the insured person. c. Housing of which the contributory value shall be equivalent to a two-month basic salary. As an exception to this provision, the housing shall be exempted from contributory deductions in such cases as may be determined by the Governor. ARTICLE (17) For the purposes of computation of the monthly wage of the daily-paid insured person, the daily wage shall be multiplied by 30, and the product so obtained shall be the monthly wage which is subject to contributory deduction. ARTICLE (18) 1. The monthly wage of the insured person who receives his wage on a piecework basis, or as percentage of the sales value or on production amount basis shall be deemed to be the monthly average of the wages he received for his actual period of work in the preceding year. The contributory wage of a newly-engaged insured person shall be the average wage of a similar insured person in the same establishment. 2. The monthly wage of the insured person who receives his wage on an hourly basis shall be computed on the grounds that every 240 paid hours are equivalent to one month. ARTICLE (19) 1. The monthly contribution payable in respect of any insured person shall not be less than the contribution payable in respect of another insured person receiving a monthly wage of SR 400. If the actual wage would otherwise be less, the contributions payable by the employer and the insured person shall be

computed on the basis of the said wage base. The effect of this provision shall involve only the assessment of contribution to the Social Insurance Scheme. 2. The provision of the preceding paragraph shall also apply to the apprentice covarad by the Scheme, and if he is an unpaid apprentice, the employer shall be liable to pay both the insured’s and employer's shares of the contribution. 3. The state and semi-state bodies shall be excepted from the application of the provisions of the two preceding paragraphs. ARTICLE (20) Where an insured person works for more than one employer, each of such employers shall pay separately for the insured the contributions payable under the Law on the basis of the contributory wage he pays to the insured, provided that the total contributory wages paid by all his employers shall not exceed SR 45,000 (forty five thousand Saudi Riyals) per month, otherwise the contributory wage paid by each such employers shall be reduced on pro-rata basis, and the Governor shall determine the details required for the application of this provision. ARTICLE (21) 1. contributions shall be deductible from the amounts forming the contributory wage provided for in Article (16) of these Regulations prior to making any other deductions for taxes, fees, debts, installments or for disciplinary penalties, fines, hours of lateness or days of absence without pay, or the like. 2 (a) Contributions payable by the employer and deductible from the insured’s wages during the year shall be paid in full on the basis of the whole contributory wage agreed upon and received in the month of Moharram or January of each year, subject to the calendar adopted by the employer, notwithstanding that the contract of employment may be suspended or that his wage may be insufficient for payment of the insured’s share of contribution, in which case the insured’s share duly paid by the employer shall be regarded as a loan which shall be settled in accordance with the provisions of the Labour Law. 2 (b) The contributions payable in respect of the insured persons who enter employment during the year shall be collected on the basis of the full contributory wage for the month of their entry into employment until the end of the insurance year, and they shall thereafter be treated on the basis provided for in the preceding paragraph. 3. The contributions for the month of entry into employment shall be collected on the basis of a complete month, but no contributions shall be collected for any part of the month in which the employment is terminated unless it is terminated at the end of the last day of the month. However, if the employment is terminated in the same month of entry into employment, the contributions shall be collected for the said whole month.

4. For the purposes of application of the provisions of paragraph 2(a) of this Article, contributions shall continue to be payable in the following cases: a. In case an insured person in an establishment covered under the Law is loaned to another establishment uncovered under the Law and his contractual relationship with the first establishment still exists, the first establishment shall continue to complete the respective insurance forms and to pay to the Organization the contributions including the insured’s share and may arrange with the second establishment for the reimbursement of the amounts so paid. However, if the insured is loaned to a covered establishment, such establishment shall apply the Law to the insured as if he is one of its own insured workers. b. In cases of leaves of all kinds permissible under the Labour Law or employer's own regulations. c. In cases of unpaid days of absence permitted by the employer. d. In case of leave taken by the Saudi insured person who is on scholarship outside the Kingdom, for the purposes of payment of contributions for the Annuities Branch. ARTICLE (22) In exception of the provisions of Article (21), the Governor may permit assessment and payment of contributions on the basis of the actual contributory wages received by the insured persons where he considers that the adoption of this method is more convenient and easy for the employers. ARTICLE (23) In calculating and paying the due contributions, the employer shall pay the actual amount of contributions in full including the fraction of the Riyal. ARTICLE (24) 1. For the purposes of application of the provisions of Article 19(2) of the Law, the raise in the contributory wage recorded for the compulsorily covered person at the beginning of each insurance year shall not exceed 10% of his wage recorded for the previous insurance year. This provision shall be applicable with effect from the first insurance year immediately following his fiftieth anniversary or from the date on which he attains such age if it happens to be the first day of the insurance year, and it shall continue to apply until his membership in the Scheme is terminated. The wage increase exceeding the said percentage shall not be subject to contributory deduction. 2. In exception of the provisions of the preceding paragraph, the wage increase exceeding 10% for workers covered under both the Annities and

Occupational Hazards shall be recorded in the cases and within the limits shown hereunder : a. In case of the increase in the wages of the insured persons employed in state and semi-state bodies. b. In case of the increase in the contributory wages specified by the employer for the worker who has resumed employment and has had previous contribution period for which he has received lower contributory wages, so long as the new wage specified by the employer is SR 1,500 of less (1). c. If the wage so specified by the employer exceeds SR 1,500 and is 10% higher than the last contributory wage received by the worker for his previous employment, a compounded percentage of 4% of the wage per year for his previous employment shall be added to his current wage as a prescribed increase multiplied by the number of the whole years falling between the date of leaving previous employment and the date of re-employment. Accordingly, the wage that shall be recorded for the worker shall be the resultant wage (including the presumed increase) or the wage for his previous employment plus 10% whichever is greater, provided that the recorded wage shall not exceed the wage specified by the last empolyer (2). 3. The new wage of a worker who resumes membership shall only be accepted for the worker who is covered under the Occupational Hazards Branch (3). ARTICLE (25) 1. The age of the insured person shall be recorded at the time of his initial registration in accordance with the provisions of the first paragraph of Article (48) of the Law, and such age may not be amended after it is recorded, notwithstanding that other documents showing a different age may appear later. 2. In exception of the provisions of the preceding paragraph, the insured’s age recorded upon his initial registration with the Organization may be amended in the following two cases: a. If the amendment is made only for the correction of material errors committed upon recording the age of the insured at the time of his first registration. b. If the insured is registered before these Regulations are put into effect and his age has not been recorded in accordance with the civil status identification card, passport (for the non-Saudi covered under the Occupational Hazards Branch) or decision of the appropriate Medical Board of the Organization. 3. In case the date of birth is not specified by day and month, the birth shall be deemed to have taken place on the first day of the seventh month of the relevant Hijrah or Gregorian year, as per the calendar recorded.

ARTICLE (26) For the purposes of application of Article 18(1) of the Law, the rate of contributions for the Occupational Hazards Branch shall be raised to the double as a maximum in respect of employers who refuse to abide by the instructions issued by the Organization or the other appropriate authorities in regard of the workers' safety and health, after such employers are warned and a time limit is given for eliminating the violation, by means of a report to be prepared by the appropriate authority determined by the Governor, with due regard to the following: 1. The Governor shall, by decision to be made by him, set the raise in the rate of contributions provided for in the preceding paragraph for the months in which the employer continues to have violated the safety and health rules. 2. The revised contributions shall be collected for the whole month in which the report evidencing the non-compliance of the employer with the occupational safety and health rules, has been prepared. Such contributions shall remain valid until the causes of violations have been fully removed and the said instructions are thoroughly observed, provided that contributions shall not be collected for the month in which the said causes are removed. 3. The revised contributions shall, after the employer is so notified, have the validity of the original contributions as to payment of and times and procedures for payment of contributions and penalties for delay in payment. 4. The decision for removing the raise in contributions shall be issued by the Governor. ARTICLE (27) 1. The Occupational Hazards Branch shall discontinue to apply to the insured parsons who are serving abroad on mission in favour of the employer and to those who are permitted to go on scholarship abroad until the date of their return. The employer shall no more pay the contributions for such workers with effect from the beginning of the month immediately following the date of their travel, but he shall resume payment of contributions with effect from the beginning of the month of their return to the Kingdom. 2. The following workers shall be excepted from the application of the provisions of the preceding paragraph: a. The crews of the Saudi aircrafts : They shall continue to be covered under the Occupational Hazards Branch during their work on board of the aircrafts or during their trip from the airport to their dwelling or vice versa in the countries abroad to which such flights reach. b. The crews of the Saudi land and sea means of transportation: They shall continue to be covered under the Occupational Hazards Branch during the

international trips abroad in accordance with such controls as may be set by the Governor. ARTICLE (28) The rectification of the contributory wages taken as a basis for the payment of contributions to the Organization may not be considered, unless the application for rectification is submitted during the insurance year in which the contribution has been paid or during the first three months of the subsequent year at the most. In exception of this provision, the Governor may consider the amendment of such wages in case the Organization discovers that the employer has not fixed the contributory wages in the legal way. In all cases, the contributory wage may not be rectified after the insured parson sustains an employment injury. ARTICLE (29) Where it is discovered that a worker of the excepted categories provided for in paragraph (3) of Article (2) of these Regulations has been registered or a nonSaudi worker has been insured under the Annuities Branch thereby violating the provisions of the Social Insurance Law, or that the registration has involved any violation, the relevant period of contribution so registered shall be annulled and the amount of contributions shall be refunded and the membership for such period shall be considered as non-existing, with due regard to the provisions of Article (64) of these Regulations (1). ARTICLE (30) 1. The fines for delay provided for in paragraph (5) of Article (19) of the Law shall no more be raised once they represent 100% of the contributions on which payment of such fines are payable. 2. The Governor may exempt the employer who is cooperative with the Organization from all fines for delay for justifiable reasons if the period of delay is not more than ten days. 3. Without prejudice to the provisions of the preceding two paragraphs, the Governor may, at his own judgment, exempt the cooperative employer from payment of the fines for delay to the extent of 50% thereof and an exemption at a higher rate shall be subject to a decision to be issued by the Board of Directors on the recommendation of the Governor. ARTICLE (31) Without prejudice to the provisions of Article (62) of the Law and Article (15) of the Regulations, where it is established that the employer has deducted the contributions from the wages of his workers and failed to pay them to the Organization, he shall be liable to pay them in addition to his lawfully prescribed share and to register the workers whose wages have been subject to

deductions so long as they satisfy the conditions for coverage under the Scheme. However, where it is established that workers from whose wages contributions have been deducted do not meet the coverage conditions, the employer shall be notified of the non-acceptance of their registration and requested to repay the workers their wage deductions.

CHAPTER IV
PROCEDURES FOR COLLECTION OF CONTRIBUTIONS ARTICLE (32) Contributions, fines and other amounts due to the Organization shall be paid to the Organization by cheques payable at accredited banks operating within the jurisdiction of the appropriate office of the Organization, or by such other means as may be determined by the Governor. The payment cheque or voucher shall be associated with the forms provided for in Article (3) of these Regulations and such other forms as may be determined by the Organization. ARTICLE (33) 1. Without prejudice to the provisions of paragraph (3) of Article (45) of these Regulations, contributions shall be paid within the first fifteen days of the month immediately following the month for which such contributions are due. 2. Without prejudice to the provisions of Article (32) of these Regulations, the date of payment shall be deemed to be: - the date of cash payment to the office of the Organization; - the date of delivery of the payment cheque to the office of the Organization (in case of direct delivery); - the date of the registered envelope or packet containing the payment cheque if sent by post. However, where such date is unclear, the employer shall be deemed to have paid the contributions five days earlier than the date on which the said envelope or packet is received, unless the cheque is post-dated in which case the date of payment of contributions shall be deemed to be the date of the cheque; - the date on which a deposit is made at the bank in favour of the Organization or at such another places as may be specified by the Governor; or - if the payment means approved by the Organization other than the foregoing is adopted, the Governor shall determine the method of establishing the relevant date of payment. 3. Nevertheless, if any of the last five days of the payment time-limit happens to be an official holiday, the due date for payment of contributions shall be extended to an equivalent number of days up to a maximum of five days. ARTICLE (34)

Failure to submit the forms within the relevant prescribed time limits shall be considered as one of the cases that permits the Organization to impose the penalties provided for in Article (62) of the Law. ARTICLE (35) The Organization shall furnish the employer with a periodical statement of account showing the total contributions due from him according to the information submitted by him and the total amount paid by him during the period covered by the said statement of account, without prejudice to the right of the Organization to claim any contributions or other amounts falling due in consequence of any data or information that was not available to the Organization at the time of preparing the statement of account. ARTICLE (36) 1. Amounts due to the Organization shall be deemed to be payable immediately they become due under the provisions of the Law, and the employer shall pay such amounts plus the fines for delay due for the period of delay up to the actual payment thereof in accordance with the provisions of paragraph (5) of Article 19 of the Law and Article (30) of these Regulations, otherwise the Organization may, by the Governor's approval, take the measures for issuance of a court order for attachment and compulsory execution on the funds of the employer after giving him a notice to this effect and a grace period of fifteen days for the payment of contributions and fines for delay. The Organization shall thereafter, as it deems appropriate, effect such measures, if such payments are not made within the said time limit or otherwise give him such further grace period as it may determine in the light of the employer's circumstances and readiness to respond to the provisions of the Law. ARTICLE (37) 1. With due regard to the provisions of paragraph (3) of Article (63) of these Regulations the employer's appeal shall not interrupt the grace period he is given for payment under paragraph (5) of Article (19) of the Law. In the event that he wishes to suspend application of the fines for delay, he shall pay on account all amounts claimed. If his appeal is accepted, such payments shall be refunded to him and if it is not accepted, he shall be deemed to have paid his dues within the limits of the payment he has already made. 2. The measures for attachments and compulsory execution shall be taken through the official authorities after obtaining a court order for compulsory execution on funds owned by or due to the employer from any government or non-government agency, or individual. ARTICLE (38)

Without prejudice to the provisions of paragraph (6) of Article (62) of the Law, neither contributions due to the Organization nor fines for delay shall be waived by lapse of time for any reason whatsoever. ARTICLE (39) 1. The amounts due to the Organization shall not be forfeited by the death of employer; and his heirs shall be jointly liable to pay such amounts, each within the limits of his inherited share. 2. Nor shall such amounts, be forfeited by dissolution, liquidation or merger of the establishment with another establishment, or by division or by ownership transfer by will, sale or relinquishment or by conversion to another legal form or by any other action. Both the old and the new employers shall be jointly liable to pay all the amounts falling due to the Organization before any of the aforementioned actions takes place; but any amounts falling due thereafter shall solely be payable by the new employer. ARTICLE (40) 1. The Organization may, when necessary, accept payment of the amounts due from the employer by installments over such period as may be determined by the Governor, provided always that either: (a) the amounts due to the Organization are secured against the employer's fixed assets, being sufficient to cover the said amounts, and the employer shall be precluded from disposing of such assets by sale or any other means whereby ownership may be transferred before the said amounts are paid in full, unless the Organization gives its prior approval, or (b) the employer provides an unconditional guarantee from an accredited bank valid for the whole period of payment by installments. 2. The Governor may exempt the employer from the condition for providing the securities referred to above. ARTICLE (41) 1. For the purposes of determining the amount to be paid by installment, payment shall include: (a) the contributions due from the employer not paid by him as of the date of issue of the decision for installments; (b) the fine for delay due in respect of the contributions not paid as of the date of issue of the said decision; and (c) the fines for delay in payment of each installment until it is paid in full, provided that the total amount of such fines plus the fine provided for in the

preceding paragraph (b) shall not exceed 100% of the amount of contributions provided for in paragraph (a) above. 2. The Governor may exempt from payment of fines imposed on installments and may also exempt from payment of all or part of such fines as may be exempted by virtue of the provisions of Article (30) of these Regulations, without prejudice to the Organization's right to cancel the decision for installment in the cases provided for in the next Article (42). The exemption from all or part of fines for delay is pending payment of all installments, and a provision to this effect shall be set out in the decision for installment. ARTICLE (42) The issue of a decision to accept payment by installments shall not prejudice the right of the employer to settle the amounts due from him in one payment or to pay the remaining installments before the relevant due times. The Organization may cancel the decision for installment if: a. the Organization considers that the reasons justifying the decision have ceased to exist; or b. the employer fails to pay the due amounts in the due times; or c. the employer fails to pay new monthly contributions in the due times; or d. the establishment undergoes such a change as may expose the Organization to loss of the amounts due, for example: - bankruptcy; - liquidation or discontinuation of activity; - emigration or permanent departure from the country; or - enforced sale of the employer's assets which is effected at the request of any creditor, whether such enforcement is administrative or judical; or - the employer's death, in case of private establishment. The said cancellation shall be effected by a decision to be issued by the Governor, and all amounts then due to the Organization shall consequently be payable within one month from the date of notifying the employer of the said cancellation decision. In case payment is not made within the said time limit, the Organization shall have the right to claim the value of the guarantee or to take measures to secure compliance by administrative seizure, with due regard to the provisions of Article (36) of these Regulations.

CHAPTER V
PROVISIONS CONCERNING VOLUNTARILY COVERED PERSONS ARTICLE (43) The law shall apply to those who wish to have voluntary coverage by virtue of the provisions of paragraph (4) of Article (4) of the Law in accordance with the following rules and procedures: 1. Submission of the following documents: a. Application for contribution on Form 7/Insurance prepared for this purpose. b. Document showing his engagement in one of the activities provided for in paragraph (4) of Article (4) of the Law, provided that such document shall be issued by the appropriate authority, or a certificate issued by the Saudi Consulate in the country of residence of the Saudi insured person . c. Civil status identification card or family register. 2. With due regard to the provisions of paragraph (2) of Article (44) of these Regulations, the voluntarily covered person shall select from the attached Schedule No. (1) the income category he wishes to be taken as a basis for his contribution, and his coverage shall take effect on and from the beginning of the month immediately following the date of completion of the required documents. ARTICLE (44) Without prejudice to the provisions of paragraph (1) of Article (45) of these Regulations, any insured person whose compulsory coverage under the Annuities Branch is discontinued may submit to the appropriate office an application expressing his desire to continue his voluntary coverage under the Scheme in accordance with the provisions of Article (8) of the Law for the purpose of completing the contribution period qualifying for entitlement to old-age pension or increasing his contribution period for improving his pension, notwithstanding that his discontinuation of coverage may have taken place prior to the implementation of these Regulations, subject to the following rules and procedures: 1. a. The applicant for voluntary coverage may not request to repay the compensation he has already recived except in the cases provided for in paragraph (1) of Article (14) of the Annuities Branch Benefits Regulations. b. For the purposes of accepting the application for coverage, the following conditions shall be satisfied : 1. The application shall be submitted to the appropriate office on Form 7/Insurance prepared for this purpose .

2. The application shall be submitted within five years from the date of putting these Regulations into effect for the insured person whose compulsory contribution period has ended before the said date and within five years from the ending date of the contribution period if it has ended after these Regulations are put into effect (1). 2. The contribution shall be based on the income category elected by the contributor from among the income categories contained in the Schedule No. (1) attached hereto, provided that it shall not initially exceed the last contributory wage he was receiving during his compulsory contribution by more than 10%. If his previous wage plus the said percentage fall between two categories, he may chose the higher one. Nevertheless, he may, upon his initial voluntary contribution, elect any category higher than that one, in which case the benefits he will eventually be entitled to shall be computed on the grounds that his compulsory contribution period is considered as an independent period as provided for in the Annuities Branch Benefits Regulations. 3. The contribution shall start with effect from the first day of the month immediately following the date of completing the required formalities and documents. 4. The one to whom the provisions of Article (8) of the Law are applicable and has missed the chance of applying for voluntary contribution within the time limit provided for in paragraph ( 1.b.2 ) of this Article, may, at any time, apply for voluntary contribution in accordance with the provisons of Article (43) of these Regulations, so long as he fulfills the required conditions, with due regard to the provisions of paragraph (2) of this Article . ARTICLE (45) The following provisions shall apply to all those who are voluntarily covered in accordance with the provisions of paragraph (4) of Article (4) and Article (8) of the Law: 1. With due regard to the provisions of Articles (43) and (44) of these Regulations, the applicant for voluntary coverage shall meet the following requirements in order to accept his application: a. He shall, at the time of submission of his application for membership, be at age eighteen or over but under the age provided for in paragraph (2) of Article (4) of the Law. b. He shall successfully complete the medical examination determined by the Governor. 2. The contribution year in respect of the voluntarily covered person shall be the Hijrah calendar year which starts at the beginning of the month of Moharram and ends at the end of the month of Zul-Hijjah, or the Gregorian

calendar year which starts at the beginning of the month of January and ends at the end of the month of December as opted by the insured person who may not change his option. 3. The insured person or the one who acts on his behalf shall pay the contribution due for each month in advance within fifteen days of each month. The Governor may accept advance payment of contributions for any period as he may deem appropriate and in accordance with such procedures, arrangements and conditions as he may determine for individual or collective cases, without prejudice to the requirement of expiration of the period for which contributions have been paid until the commencement of the lawfully due date of payment of benefits, as if the contribution has been made on monthly basis. 4. The insured person may designate the name or names and specimen signatures of the representatives who act on his behalf for the purposes of application of the provisions of the Law and these Regulations particularly for submission of documents, completion of forms, and reporting the events required to qualify to benefits. Any actions taken through any of such representatives shall be deemed as binding to the insured person. The insured may replace such representatives any time after giving the Organization a notice to this effect. If he does not designate any representative to act on his behalf to do so, he shall be liable to deal with the Organization by himself. 5. The insured person may apply for changing his current contributory income category to the immediately higher one, provided that he submits his application for the change begore the beginning of the insurance year. The same shall apply to the one who submits his application within the first fifteen days of the first month of the said year. If he fails to do so within time limit, the change shall take effect in accordance with the new category from the beginning of the insurance year immediately following the date of submission of the application . 6. The insured person may apply for changing his current contributory income category to a lower one, provided that he submits his application before the beginning of the insurance year. The same shall apply to the one who submits his application within the first fifteen days of the first month of the said year. If he fails to do so within this time limit, the change shall take effect in accordance with the new category from the beginning of the insurance year immediately following the date of submission of the application. In this case, the insured person shall be treated the same as the complusorily covered person whose contributory wage is reduced in accordance with the provisions of the Annuities Branch Benefits Regulations. 7. The insured’s membership shall, upon his request, be discontinued with effect from the last month for which he has paid or will pay contributions and shall also be considered as discontinued, in the event of his actual suspension of payment of contributions, with effect from the end of the last month for which he has paid contributions.

8. If an activity on which basis a voluntarily covered person has been registered is discontinued, his contribution shall be terminated at the end of the month in which his activity is discontinued or at the end of the last month for which contributions have been paid if his activity has already been discontiuned. However, if it is discovered that he has continued payment of contributions beyond the date of discontinuation of the activity, the contributions paid for the months following the said date shall be refunded to him . 9. The insured person whose coverage is suspended may resume coverage for the purpose of completing the period qualifying for pension or increasing such period, in which case he may pay the contributions and fines for delay due for the suspended period or otherwise forfeit such period. Coverage shall be resumed and the contributions payable for the suspended period shall be computed on the basis of his last contributory income category, and a fresh application shall be submitted by using the form prepared for this purpose. 10. Failure to pay contributions for any reason shall not have effect on the lawful time of entitlement to benefits. 11. If the applicant for voluntary coverage employs workers, his application for voluntary coverage shall not be accepted unless he registers his establishment and all his workers and pays the contributions due in respect of such workers so long as they fulfill the conditions of compulsory coverage under the Scheme as required by the phases of application. 12. The voluntarily covered person shall be subject to all provisions of these Regulations that have no contradiction with his status as voluntary coverage, in accordance with such details and procedures as may be set by the Governor.

CHAPTE VI CONTROL OF APPLICATION OF THE LAW SECTION 1 GENERAL OBJECTIVES ARTICLE (46) 1. The Organization shall take such measures as may be necessary for ensuring the proper application of the provisions of the Law and its implementing regulations, in particular: a. To follow up the employers and assist them to properly apply the provisions of the Law and its regulations to ensure, in particular, that they contribute for all their workers on the basis of their actual wages and that they discharge their obligations towards the Organization in accordance with the provisions of the Law and the decisions of implementation thereof, and this includes the continuous survey of establishments and verification of the registration of such establishments with the offices of the Organization. b. To follow up the employers who fail to pay the contributions or to submit the forms after the necessary actions are taken by the competent agencies of the Organization. c. To explain the provisions of the Law and its implementing regulations to the registered employers to avoid application errors and to ensure speedy discovery of committed violations. d. To ensure that each establishment is maintaining regular records and files to serve the objectives of insurance in accordance with the decisions implementing the Law. e. To verify the employer's violations of the provisions of the Law and the decisions issued in implementation thereof and to investigate such violations and the workers' complaints concerning the employer's failure to register the workers or his payment of contributions on the basis of wages lower than the actual ones. f. To coordinate between the appropriate organs of the Organization and those of the state bodies for the purpose of proper application of the Law, to exchange information pertaining to the new establishments to follow up those with late or discontinued payment, and to check whether the employer is abiding by the occupational health and safety instructions issued by the appropriate authorities. 2. The Governor shall, by decision to be issued by him, specify the departments and sections assigned to achieve the objectives and tasks set under the preceding paragraphs for each the head office and offices of the Organization as well as their individual functions and work procedures. SECTION 2 THE INSPECTORS AND THEIR AUTHORITIES ARTICLE (47)

1. The social insurance inspectors shall be charged with the achievement of the objectives provided for in Article (46) of these Regulations in accordance with such organization, plans and instructions as may be approved by the Organization. 2. The social insurance inspectors shall be elected from among the Organization employees who have been employed for not less than two years in the departments of the Head Office or the inspection work-related sections of the offices to the extent that renders them thoroughly acknowledgeable of the Law and its Regulations. Due regard shall be given to the following in the selection of inspectors: a. They should be exclusively impartial. b. They should not have any direct interest in the establishments being inspected by them. c. They should have showed efficiency in the performance of their duties at the Organization. 3. The inspection works shall be entrusted to a selected inspector by temporary assignment for two months after which a comprehensive report shall be prepared on him. This report shall be used for evaluation of his personal characteristics, behaviour, capabilities and aptitude for the proper performance of the inspector's assigned tasks, prior to his permanent placement in the position of inspector. 4. Prior to starting performance of their tasks, the insurance inspectors and their superiors shall take before the Governor the following oath: " I swear by God the Almighty that I will carry out my post duties with honesty and dedication and will not disclose the secrets which come to my knowledge in the course of performance of my duties to any one other than the competent agencies of the Organization. " 5. The Organization shall furnish each inspector with an identification card to evidence his capacity and authorities, which card shall show his photograph, the Governor's signature, the official seal, and the period of its validity as determined by the Governor. The inspector shall return such card on quitting his job or being transferred to do a job other than inspection. The inspector shall not be permitted to use such card on assignments other than the official inspection ones. In case an inspector loses his card, he shall be provided with a new one after it is ascertained that he is free from the responsibility for the loss thereof. 6. The inspector may not be transferred to do another job after taking the oath except for justifying reasons and by the Governor's approval. ARTICLE (48) The social insurance inspectors shall exercise the following powers: 1. To enter the premises of the establishment during the working hours for the purpose of carrying out their assignments. 2. To examine the records, papers and files or any other documents kept by the employer in respect of the application of the Law and its Regulations to the workers and to obtain copies of such documents if required. 3. To question the employer, his representative or his workers on any subject relating to his mission and may write a report thereon, if necessary. 4. With due regard to the provisions of paragraph (2) of Article 60 of the Law, the inspector may not request the assistance of any of the appropriate authorities of the Government without the Governor's approval. ARTICLE (49)

In doing their jobs, the inspectors shall observe the following: 1. To be cautious and honest in choosing the information and statements they include in their reports concerning the establishments they have inspected. In particular, they shall base their observations on what they themselves hear or witness. They shall refrain completely from making any comments on matters which they are not adequately acquainted with in order to maintain the confidence which has been placed in them. 2. To carry, upon performing their duties, the identification card which evidences their capacities and to present it when needed. 3. To meet the employer or his representative before entry into the business premises to perform inspection, unless they feel that the public interest necessitates that they proceed performing their inspection assignment immediately upon their arrival. In no way, a prior notification of an inspector's visit be made unless such prior notification is deemed to meet the work interest. 4. To give full care to the guidance and advisory aspect in their relationship with the employers and provide every possible aid with a view to assist them in applying the Law and implemental measures thereof in the manner contemplated by the Organization and to overcome any difficulties in this respect. 5. To choose, for the inspection visits, the convenient time, subject to the nature of activity of the establishment. SECTION 3 INSPECTION RULES AND PROCEDURES - REPORTS ARTICLE (50) The inspection agencies shall observe the following: 1. The inspection visits plans shall include a field inspection of every covered establishment at least once every periodical interval determined by the Governor, or upon applying by the establishment for a certificate from the Organization if a certain period, to be determined by the Governor, has elapsed since the last inspection was performed, subject to the purpose of the required certificate. 2. The periodical inspection shall cover all aspects concerning the application of the Law and these Regulations and, in particular, the verification of registration of all workers with their actual wages. 3. The competent superior at each office shall organize the inspector's visits to the establishments during the official working hours in accordance with programs certified by the office director and prepared on special form approved by the Governor. ARTICLE (51) 1. Each inspector shall prepare on the relevant form approved by the Governor a full report on the results of each inspection he conducts in respect of any establishment he visits for the purpose of making periodical inspection or ensuring compliance. The report shall be submitted to his immediate superior for review and comments. The report shall, in particular, include the following information. a. Administrative data which includes: Inspector's name, date and time of inspector's visit, and names of the persons he has met. b. Identification of the establishment he has visited, which includes:

- Name, legal form, type of activity and registration number of the establishment. - Its address. - Name of the proprietor or responsible manager. - Nature of work. - Number of Saudi and foreign workers in employment. c. Summary of the results of the visit. d. Recommendations. e. Such other information as the Governor may recommend to be included in the report. 2. The Office Director may accept the inspection visit made by an inspector although it has not been included in the already approved inspection visit programme, provided that the inspector shall have shown evidence of the visit event by means of a report signed by him and the establishment proprietor or responsible manager. ARTICLE (52) 1. Where an inspector discovers that an employer has committed violations in discharging his obligations under the provisions of the Law and these Regulations, he shall clarify verbally to the employer or his representative the nature of the violation, the legal judgment in respect of the violation, and the procedures and the grace period for eliminating the violation and shall confirm the same by a letter to be sent to the employer by official mail. If the employer fails to respond within the grace period, he shall be given an official warning duly certified by the Office Director, and such warning shall contain a statement of the violations and the procedures which shall be taken to eliminate the violations and shall indicate an adequate period determined by the Office Director for the elimination of each violation according to its nature, provided that it shall not exceed one month. The Office Director may extend the said grace period for further one month maximum, if he discovers that the employer is ready to respond. He may, in lieu of serving the said warning letter, provide the employer with a copy of the inspector's report referred to in Article (51) if it suffices the purpose, with the grace period granted to him for elimination of the violation specified in the report. The granting of the grace period specified in the warning shall not prejudice the Governor's right to apply the penalties imposed by the Law without waiting until the expiry of the grace period for such reasons as may be determined by the Governor if this would maintain the entitlements of the Organization. 2. With due regard to the provisions of Article (53) of these Regulations, if the employer fails to eliminate the violation within the prescribed grace period in accordance with the provisions of the preceding paragraph, the inspector shall draw a report of contraventions in triplicate of which a copy shall be sent by official mail to the employer, provided that the report shall contain the basic information, in particular: a. the position of the violator, being either the employer or the person-in-charge of the conduct of his activities; b. statement of violations clearly;

c. the number of workers involved in contraventions for which penalties may be multiplied by the number of workers in respect of whom such contraventions have been committed; and d. statement of previous contraventions by the employer in relation to which the fine may be doubled. ARTICLE (53) 1. In case of resorting to drawing a report of contraventions, such report shall be drawn up in the workplace unless this cannot be done for exceptional reasons. The inspector shall ask the employer about the reasons for committing each of the contraventions he has witnessed, and he shall record in the report a summary of his answer. The report shall be signed by both the inspector and the employer or manager-in-charge. In the event of refusal to sign, a reference shall be made to this effect in the report. 2. The report of contraventions shall be submitted to the Office Director who shall, in turn, submit the report (or a copy thereof if the original has been sent to the employer) along with his recommendations to the competent department at the Head Office for presentation, if necessary, to the Governor for issuing his instructions. 3. The drawn report of contraventions submitted to the competent department at the Head Office shall enclose the following documents, as necessary: a. Copy of the report referred to in paragraph (1) of Article (51) of these Regulations duly certified by the Office Director with an indication of his approval of the drawing of the report of contraventions. b. Copy of the warning served to the employer and bearing the signature of the employer or his representative as acknowledgment of receipt of the same or showing the Office outgoing mail reference number and date. c. Copy of the survey statement prepared by the inspector and signed by both the inspector and the employer or indicating his refusal to sign. Such statement shall contain complete particulars on workers, their numbers and the discrepancies in wages or dates of entry in employment, if any. d. Copy of the claim for payment of amounts due to the Organization as a result of the contents of survey statement on the date of dispatch of the claim which shall have been dispatched at least fifteen days before the final inspection is performed on the employer's establishment. The copy of the claim shall show evidence of receipt of the same by the employer or the number and date of dispatch of the same from the Office. e. List of state bodies, semi-state bodies and joint stock companies which the employer is dealing with particularly in the contracting field. f. A mention of the penalty alleviating or extenuating circumstances, as appropriate. g. The employer's establishment size and capabilities for coping with the provisions of the Law and the employer's readiness for response. 4. The Governor shall make such forms as may be required for the implementation of the provisions of this Article. ARTICLE (54) The Director of the appropriate Office shall submit to the Head Office of the Organization a report on the following contraventions with a view to take the

necessary action if the office fails to have them remedied or if the remedy of such contraventions requires approval from another competent authority: 1. If the employer refuses to abide by the instructions issued by the appropriate authority in relation to occupational safety and health, or if the insurance inspector fails to verify the same. 2. If the employer insists to refrain from registration of his workers, or a dispute arises in respect of the work relationship, period of service, or wage earned by the worker. ARTICLE (55) For the purposes of application of the provisions of paragraph (4) of Article (62) of the Law, the Governor shall be empowered to form one committee or more for investigation in the violations provided for in the said Article and to set the committee's work procedures.

CHAPTER VII
RULES FOR RECONCILIATION OF STATUS OF ESTABLISHMENTS OF WHICH ACTIVITY IS PERMANENTLY DISCONTINUED ARTICLE (56) 1. The provisions of this chapter shall apply to establishments of which activity is permanently discontinued for any of the following reasons: a. Death of proprietor of private establishment. b. Announcement of bankruptcy or issuance of verdict of financial strait of the proprietor. c. The termination of establishment and entry into liquidation or merger with others whether under the Companies Act, agreement, articles of association, judicial verdict or decision by an appropriate administrative authority. d. Actual quitting by the proprietor of his activity for any reason. The discontinuity of the activity of an establishment shall be established by inspection report and findings, or presentation of a certificate for writing off the establishment from the appropriate commercial register or such other document as may confirm the discontinuation of activity, as applicable. For the purposes of application of the provisions of this Chapter, the term "establishment" shall mean the head office and branches thereof owned by the employer within the Kingdom of Saudi Arabia notwithstanding that they may all be involved in a single or several activities, without prejudice to the provisions of paragraph (2) of Article (6) of these Regulations. 2. Any case where an employer's activity is discontinued shall be presented to the appropriate department at the Head Office supported by the relevant documents and inspection reports whereby the discontinuity of activity is established; and in the light of these, the case shall be presented to the Governor to determine the date on which the activity shall be deemed to be discontinued as to the employer's relationship with Social Insurance. 3. The Governor, shall determine the data to be available in the inspection report establishing the discontinuity of activity.

ARTICLE (57) The establishments of which activities are discontinued shall be dealt with according to the following rules: 1. The fines for delay shall cease to apply on and from the date determined for discontinuation of activity. The Governor may exempt the employers from payment of all or part of the fines for delay due from the establishment of which activity is discontinued for the period preceding the said date, on the basis of his own judgment on the reasons for delay in payment of contributions. 2. Contributions in respect of insured workers shall be payable as of the date determined for discontinuation of activity, and such date shall be deemed to be the date determined for discontinuation of their coverage at this establishment.

As an exception to this provision, contributions for the workers whose service continues during the process of liquidation shall be payable until the date of completion of the process of liquidation. ARTICLE (58) 1. The Organization shall take the necessary measures to collect its entitlements payable by the establishments of which activities have discontinued including the follow-up of collection of entitlements payable by the foreign establishments which are known to have offices outside the Kingdom, with due regard to the provisions of Article (39) of these Regulations. 2. The Organization shall notify the employer, whose activity is discontinued, of such amounts as may be payable to him by the Organization. 3. As an exception to the provisions of Article 38 of these Regulations, the entitlements payable to the Organization by the establishments of which activities have discontinued or otherwise payable by the Organization to such establishments, shall be dealt with according to the following rules: a. If the discontinuation of activity is limited to one branch of the employer's business and it is discovered that he has other branches or activities registered with the Organization, the debit and credit balances shall be transferred to the office where the employer's account and activity are still operating within the jurisdiction of such office. b. If the amount payable to the Organization or to the employer is one thousand Saudi Riyals or less, no claim may be made after the lapse of one year from the date of issue of the Governor's decision providing for the discontinuity of activity. c. If the amount payable to the Organization or to the employer is more than one thousand Saudi Riyals, no claim may be made after the lapse of seven years from the date of issue of the Governor's decision providing for the discontinuity of activity. d. The employer's account shall be closed after the lapse of the periods prescribed in the preceding two paragraphs (b) and (c) by a Governor's decision, in which case the amounts due to the Organization shall be considered as dead debts, after taking the adequate measures for collection of the amounts due to the Organization or payment of the amounts due to the employer, as applicable. e. The Governor may extend the foregoing time limits if he discovers that certain measures have not been taken for the collection of the amounts due to the Organization or for payment of the amounts due to the employer.

CHAPTER VIII
PROCEDURES FOR SUBMISSION AND CONSIDERATION OF APPEALS ARTICLE (59)

1. The employers or insured persons or the ones who act for them shall have the right to appeal against any decision issued by any agency of the Organization in connection with: a. the coverage or non-coverage under the Law; and b. the determination of the contributory wage or the amount of contribution or fines for delay. The decision appealed against in such connections ought not to be issued in a particular format, it may also be negative in that the appellant requests the issue of a decision where none has been given. 2. The Annuities Branch Benefits Regulations and the Occupational Hazards Branch Benefits Regulations shall provide for the submission of appeals in connection with decisions issued regarding entitlement to or computation of benefits. ARTICLE (60) 1. The appellant may submit a petition to the same agency which issued the decision appealed against for reconsideration, and such petition shall indicate the petitioner's reasons and requests, provided that he shall submit his petition within one month from the date on which he is notified of the relevant decision. Also, he may, in lieu thereof, submit his appeal to the immediately higher level, provided that his appeal is submitted within two months from the date of issue of the decision appealed against. 2. If the petitioner is notified of the rejection of his petition or in case of failure to make a decision on the petition within fifteen days from the date of submission of his petition, he may present his first appeal, provided that he shall do so within two months from the date on which he is notified of the rejection of the petition or the date on which the fifteen days prescribed for making a decision on the petition has elapsed without giving an answer, as the case may be. ARTICLE (61) An appeal shall be submitted to the agency immediately above that which issued or refused to issue the decision, as shown in detail below: 1. To the Governor of the Organization as regards decision made by the Office Director.

2. To the Board of Directors as regards decision made by the Governor, provided that the appeal shall, in this case, be submitted to the Board of Directors within thirty days from the date on which he is notified of the Governor's decision. 3. The Governor may, for justifiable reasons, accept to reconsider an appeal submitted after the lapse of the prescribed time limit. 4. An appellant whose appeal has not been accepted for objective reasons after going through the aforementioned sequence of levels referred to in the preceding paragraphs may submit a complaint to the authority concerned with the settlement of labour disputes within 30 days from the date of issue of the decision rejecting his appeal. ARTICLE (62) The appellant, or whoever acts on his behalf, may submit his appeal to the competent authority in person or by registered mail. If the appeal is submitted by a representative of the employer or insured person he shall prove the capacity in which he is acting, and the appeal so submitted must contain the following particulars: 1. Full name and surname of the appellant. 2. Capacity, occupation and workplace of the appellant . 3. His address and telephone number. 4. The agency which issued the decision appealed against and the particulars thereof; and a copy of the decision shall be attached. 5. Reasons for the appeal in detail specifying the claims and justifications of the appellant. 6. Signature of the appellant; but if he is unable to sign, he shall make the impression of his left thumb on the submitted appeal before the official concerned with the registration of appeals. The Organization may prepare a form for appeals to be used by appellants upon submission of their appeals in accordance with the provisions of this Chapter. ARTICLE (63) 1. The Governor may form at the Head Office of the Organization a committee for the examination of appeals presented to him. This committee may request such data or information as it may need and deem necessary for the examination of the appeals and prepare a report on each appeal within one month from the date on which the relevant information is completed, which report shall be submitted to the Governor for deciding on the appeal. 2. The committee may summon the appellant or his representative to appear before it for discussion and may recommend putting away the appeal if, without valid reason, the appellant or his representative fails to appear at the appointed time.

3. If the appeal fulfills the formal requirements, the measures for administrative seizure provided for in these Regulations shall be suspended. 4. A Governor's decision shall be issued closing the appeal, or canceling or modifying the decision appealed against, provided that in all cases the decision shall be causative; and the appellant shall be furnished with a certified copy of the decision by an official letter dispatched to him at the address specified in his appeal.

CHAPTER IX
TRANSITIONAL PROVISIONS ARTICLE (64) Without prejudice to the provisons of Article (29) of these Regulations, those registered with Social Insurance shall be deemed to be properly registered if they have continued payment of the required contributions for three or more years before 01/07/1423H, notwithstanding that their registration might have involed any of the violations. This exception shall not include the categories excepted from coverage under the Law or registration of the non-Saudi worker with the Annuities Branch . ARTICLE (65) New contributory wages for all compulsory contributors shall be recorded in the first month of the introduction of the Scheme (i.e. Moharram 1422 H - April 2001 G), and such wages shall be fixed in accordance with the provisions of Article (16) and the subsequent Articles of these Regulations. The Governor shall determine the method of application of this provision. 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

ANNUITIES BRANCH BENEFITS REGULATIONS SECTION I METHOD OF COMPUTATION OF CONTRIBUTION MONTHS ARTICLE (1) For the purposes of computation of the contribution months in application of the provisions of Article (47) of the Law, the following rules shall be applicable: 1. A contribution month is every calendar month for which, pursuant to the provisions of the Law and the Registration and Contribution Regulations, contribution is due to the Organization on the basis of the full monthly contributory wage, regardless whether it is based on the wage of the first month of the insurance year or on actual wages or on

Category No.Amount in RiyalsCategory 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

such other method as adopted by the Organization for the purposes of determination of the payable contributions. 2. The insured person treated on the basis of the actual wages method shall be treated as follows in respect of the periods for which no full monthly wage has been received by him and not included in the period calculated in his favour in accordance with the preceding paragraph: a. If he is a monthly-paid insured person, he shall be credited with one contribution month for every 30 paid days. b. If he is an hourly-paid insured person, he shall be credited with one contribution month for each 240 paid hours. c. If he is a daily-paid insured person, he shall be credited with one contribution month for every 30 paid days. d. In adding the contribution months as provided for in the preceding paragraphs, the working days balance equivalent to or exceeding 13 (thirteen) days shall be considered as a contribution month and the balance that is less than that shall be disregarded. e. If the insured person’s period of contribution includes a period for which a daily allowance for injury is payable, such period shall be included for the purposes of computation of pension or compensation payable to him under the Annuities Branch provisions, as if he has received full wages and paid the contributions due therefore. 3. Where contributions are paid according to Gregorian calendar, the differences in days between the Gregorian and Hijrah years shall be added to the contribution period if this enables the insured person to complete the period qualifying for pension. This shall apply to cases of eligibility for pension provided for in paragraphs 1 (a), 1 (c), 1 (d), and 1 (e) of Article (38) of the Law and to cases of disability and death, provided that such added differences shall not be taken into account in the computation of the pension. ARTICLE (2) 1. The day on which an insured person leaves employment shall be reckoned as contribution day. 2. For the purposes of application of the provisions of paragraphs (1.a), (1.c), (1.d) and (1.e) of Articles (38) and the provisions of Articles (39) and (40) of the Law, the incomplete month in which the worker leaves employment shall be reckoned as complete contribution month, if such reckoning enables the insured person to complete the period qualifying for pension, provided that such month shall not be taken into account in the computation of the pension. 3. For the purposes of determination of the period qualifying for non-occupational disability pension and heirs pension in the application of the provisions of paragraph (1) of Article (39) and paragraph (1) of Article (40) of the Law, the contribution months shall be considered as consecutive if they are related to periods of employment covered under the Law and are not separated by a time interval. 4. In the application of the provisions of the preceding paragraph, the month in which the insured person leaves employment shall not be considered a time separator if no contribution is due for such month in respect of the insured person who pay contributions on the basis of wages of the first month of the year. Likewise, the periods of absence, leave without pay, or periods of suspension of the employment contract shall not be considered as time separator if no contribution is due for such periods, in respect of insured person who pay contributions on actual wage basis. Nor shall the period separating between two contribution periods which is less than thirty days be considered as time separator. However, the periods referred to in the foregoing cases shall not be included in the period taken as a basis for the calculation of the pension. ARTICLE (3) For the purposes of application of the provisions of paragraph 3(e) of Article (38) of the Law, if an insured person has worked for more than one employer at a time, and each employer is liable to pay full contribution for each one month, the insured person, or his eligible surviving family members, as applicable, shall be credited with one contribution month for each one calendar month. In this case the total monthly wages due to the insured person from the various employers during the last two contribution years shall be taken as a basis for the computation of the pension, with due regard to the application of the provisions of paragraph (2) of Article (19) and paragraph (3) of Article (38) of the Law and Article (8) of the Annuities Branch Benefits Regulations. The Governor may set forth such details and examples as may be required for the implementation of this Article.

SECTION II BENEFITS PAYABLE TO INSURED PERSONS AND METHOD OF COMPUTATION THEREOF ARTICLE (4) 1. For entitlement to retirement pension in all cases, in the application of the provisions of Article 38(1) of the Law, the compulsorily covered person shall have ceased to be engaged in any work subject to compulsory coverage and the voluntarily covered person shall have ceased to be engaged in any work subject to voluntary or compulsory coverage. However, if the insured person who leaves employment at age sixty or over, re-enters into employment with the same employer or at any of his branches or at his owned establishments during one year from the date of leaving employment, this shall be deemed as a waiver on both parties of the previously existing work relationship, in which case the notification of termination of employment of such insured person already submitted by the employer to the appropriate office shall be invalid and the interruption period shall be considered as contribution period for which contributions shall be payable, and the insured person shall repay the pension he has received therefore. 2. For the purposes of application of the provisions of paragraph 1(c) of Article (38) of the Law, the female insured person who attains fifty five years of age or over shall have the right to file a claim for payment of retirement pension if she has completed at least 120 (one hundred twenty) contribution months. 3. In the application of the provisions of paragraph 1(d) of Article (38) of the Law, the insured persons who are engaged in arduous or unhealthy occupations listed hereunder may retire at age fifty five or over and receive retirement pension so long as each has completed at least 120 contribution months: a. The mining workers who work inside the mines.\ b. The quarry workers who work in the breaking, exploding and packing of rocks and raw materials. c. The workers who work in casting of metal such as iron and steel and do their job in front of furnace with high temperature. d. The divers whose regular work requires diving deep into the sea. To benefit from the provisions of this Article, the insured person shall have continued his actual engagement in the said works throughout the last five years of his contribution period, and this shall be established by the inspection report approved by the Office Director. 4. With due regard to the provisions of paragraph (1) of this Article, the pension due under paragraphs 1(b), 1(c) and 1(d) of Article (38) of the Law shall be paid on the first day of the month immediately following the date of filing the claim for payment of pension if such claim is filed before attaining age sixty. ARTICLE (5) 1. For the purposes of application of paragraph 1(e) of Article (38) of the Law, the Organization shall pay the retirement pension to the family of the male or female insured person who is sentenced for a term of imprisonment on temporary basis, though he may be under sixty years of age, so long as he has completed the period qualifying for entitlement to pension and satisfied the following conditions: a. The insured person shall have been sentenced by virtue of a final judical order for a term of imprisonment of not less than one year from the date of delivery of the sentence order, and the arresting period preceding the date of delivery of the order shall not be included therein. b. The employer shall have notified the Organization of the termination of employment of the insured person. 2. The right to the pension referred to in paragraph (1) of this Article shall commence at the beginning of the month following that during which the sentence provided for in paragraph 1(a) above is delivered and shall expire in either of the following times, as applicable, with the next six months added thereto : a. The end of the last day of the month in which the period of imprisonment prescribed in the order expires. b. The end of the last day of the month in which the imprisoned insured person is released prior to the end of his term of sentence, in which case the appropriate office shall coordinate with the prison administration to know the actual date of release of the insured person.

3. The pension of the family members shall be paid to such person as may be designated by the insured person to receive the pension on behalf of the family members. Designation of such person shall be made by a statement of the insured person duly approved by the administration of the prison in which he is detained. If such designation is not made, the Organization may pay the pension to the person designated by his eligible family members. If they do not designate anyone, the pension shall be paid to the wife (or to the husband of the imprisoned female insured person) or otherwise to the eldest member. 4. The retirement pension payable to an imprisoned insured person by virtue of the provisions of paragraph 1(e) of Article (38) of the Law shall become final, if such insured person attains 60 years of age in the course of his term of imprisonment. If, prior to reaching that age, he dies or is afflicted with a non-occupational disability of the kind provided for in Article (39) of the Law, his pension shall be re-computed, and he shall be treated the same as the one who dies or is afflicted with a disability after he leaves insurable employment prior to reaching age 60. 5. Where the imprisoned insured person is released prior to reaching 60 years of age and the time limit prescribed in paragraph (2) of this Article has expired, he shall be treated the same as any other insured person whose contribution period ends before attaining age 60. 6. With due regard to the provisions of the preceding paragraphs, the pension payable to the imprisoned insured person shall be subject to all the provisions of the Law and these Regulations, particularly in relation to the conditions of continuity of entitlement to pension. ARTICLE (6) In the application of the provisions of paragraph (2) of Article (38) of the Law, the insured person who has completed 60 or more but less than 120 contribution months and is no more engaged in any insurable activity and has filed a claim for payment of his pension at age sixty or over, may claim to be credited for an additional period to the extent required to qualify him for entitlement to pension, provided that the period to be credited for shall not exceed five years, and that he shall pay the total contributions to the Annuities Branch at the rate of 18% (eighteen percent) for each month of the credited period computed on the basis of the average monthly contributory wage taken as a basis for the computation of the pension. The insured person sall pay the said amount of contributions either in one payment or by deducting it from the accumulated pension due from the date of his retirement and paying the balance in monthly installments at the rate of 25% (twenty five percent) of the payable monthly pension until the whole due amount is settled. In the event of death of the insured person prior to settlement of the whole amount, the Organization's title to the balance of the installments shall be forfeited. ARTICLE (7) For the purposes of application of paragraph 3(a) of Article (38) of the Law, due regard shall be given to the following : a. The contribution period for which the pension is assessed shall mean the total contribution months divided by 12 (twelve) months. b. The contribution period completed with effect from the date of implementation of the new Law shall be included in the computation of the pension at the rate of one fortieth of the average monthly contributory wage in the last two years of his contribution period. c. The contribution period completed under the old Law shall be included in the computation of the pension at the rate of one fiftieth of the said average provided for in the paragraph (b), above. There shall be added to the pension payable for such period the family allowance provided for in paragraph (3) of Article (38) of the old Law in accordance with the relevant provisions applicable thereto. d. In exception of the provisions of paragraph (c) above, the said family allowance shall not be payable in respect of those to whom the provisions of the said paragraph apply, if the total amount of the pension and the allowance is equivalent to or less than the minimum prescribed for the retirement pension or non-occupational disability pension, in which case the pension shall be raised to the said minimum and the allowance shall be cancelled. However, where the said total amount exceeds the prescribed minimum, the pensioner shall continue to receive this total without having the pension raised to the prescribed minimum. In case, the amount of the allowance has been revised as a result of a change in the number of the dependants which revision renders the total amount to be equivalent to or less than the prescribed

minimum, the pension shall be raised to such minimum and the allowance shall be cancelled. In the event of the death of the pensioner, the pension distributable among the family members shall not be less than the prescribed minimum. ARTICLE (8) 1. For the purposes of application of paragraph 3(b) of Article (38) of the Law, due regard shall be given to the following: a. The average monthly wage on which basis the pension is computed shall be one twenty fourth of the total contributory wages on the basis of which the contributions due have been paid during the last twenty four contribution months, with due regard to the provisions of the next paragraph. b. The average wage taken as a basis for the computation of the pension shall not exceed 150% (one fifty percent) of the contributory wage at the beginning of the last five years of the contribution period, save for the insured person whose contributory wage has continued to be subject to the graduation provided for in paragraph (2) of Article (19) of the Law for at least five contribution years. If, as a result of application of this provision, the average wage taken as a basis for the computation of pension is less than the actual average wage in the last two contribution years by 10% or over, a separate pension shall be assessed for the excluded wage differences and such pension shall be added to the original pension in accordance with such details and examples as may be issued by Governor's decision. 2.1. For the purposes of application of the provisions of paragraph 3(d) of Article (38) of the Law, due regard shall be given to the following: a. The provisions of the said paragraph shall apply to the cases where the contributor's average monthly wage in the last two years of his contribution period is less than his average wage in any former year by 10% (ten percent) or over, due to an actual reduction in this wage or in consequence of the application of the provision of paragraph 3(c) of Article (38) of the Law. b. The maximum number of periods which may be determined as separate periods shall be only two contribution periods including the final contribution period, provided that either periods shall not be less than two years and that the monthly average wage in the last two years of the first separate period shall be more than 10% higher than the monthly average wage for the final separate period. c. In case the conditions provided for in the preceding paragraph are met by more than one contribution period, the contribution period immediately preceding the final separate period shall be elected. d. If the insured person’s monthly average wage in the last two years of each separate period is less than his wage in any year preceding such period by 10% (ten percent) or over, the difference between them shall be taken for each year in which such difference arises and the monthly average thereof shall be produced. Then a separate pension shall be computed in respect of such differences and their respective period, which pension shall be added to the original pension of that period. e. The provisions of paragraph 1(b) of this Article shall apply to the average wage taken as a basis for the computation of the pension for each separate period. f. A pension shall be computed for each separate contribution period, with due regard to the provisions of paragraphs (a), (b), (c), (d), and (e), above, and the ultimate pension shall be equivalent to the total amount of all pensions due for those periods. 2.2 In case the conditions provided for in the two paragraphs 2.1. a and 2.1.b, above, are not satisfied by a contribution period, the provisions of paragraph 2.1.d, above shall apply to that period. 3. For the purposes of application of paragraph 4(a) of Article (38) of the Law, the pensioner may not combine the wage he earns when he resumes an insurable work with a portion of his pension in the manner provided for in the said paragraph, unless he is 60 years old or is a recipient of a non-occupational disability pension referred to in paragraph (7) of Article (39) of the Law. ARTICLE (9) 1. In the application of the provisions of paragraph (1) of Article (39) of the Law, the insured person shall be entitled to a non-occupational disability pension, if the disability has occurred while the insured person is in employment covered under the Law, the twelve or eighteen-month period is immediately following the completion of the formalities for his actual registration with the Organization, and the state of disability is established by the Medical Board within eighteen months at the most from the date of termination of the contribution period in addition to the other statutory conditions. If no decision establishing the disability is issued by the Medical Board within such period

for the insured person’s own reason, he shall be treated as the insured person who is afflicted with a non-occupational disability after he leaves the covered employment provided for in paragraph (2) of Article (39) of the Law in addition to the next paragraph. 2. In the application of the provisions of paragraph (2) of Article (39) of the Law, the case of the insured person who is afflicted with a non-occupational disability after he left insurable employment shall be presented to the appropriate Medical Board to consider the existence of the non-occupational disability required for entitlement to the retirement pension prior to attaining age sixty. The case may be presented to the Board at any time so long as the insured’s right to claim has not elapsed by the expiry of the time limits provided for in Article (57) of the Law and the other statutory conditions for entitlement to such pension are fulfilled. 3. The pension payable to the insured person who is afflicted with a non-occupational disability after he leaves the insurable employment as well as the one who is treated as such shall be deemed as a retirement pension to which all the relevant provisions shall apply except that it is paid before reaching age sixty and due regard shall be given to the following: a. He shall not be entitled to the said pension for the period preceding the date of leaving the insurable employment. b. The minimum-related provisions of paragraph (3) of Article (39) of the Law as well as the provisions of the said Article shall not apply to him. c. This penioner shall be subject to such periodical medical tests as may be determined by the Medical Boards until he attains 60 years of age . The provisions of paragraphs (a) and (b), above, shall apply to cases of entitlement to survirors pension as a result of the death of their insured breadwinner after leaving his insurable employment which cases are provided for in pargraph (2) of Article (12) of these Regulations. ARTICLE (10) For the purposes of application of the provisions of paragraph (4) of Article (39) of the Law, an allowance of 50% (fifty percent) shall be added to the non-occupational disability pension of the insured person if he is established by the Medical Board to be in need of the assistance of others in the performance of his everyday life activities, provided that such allowance shall not exceed the sum of SR 3,500 (three thousand five hundred Saudi Riyals). Entitlement to the allowance shall commence with effect from the date of entitlement to the disability pension or from the beginning of the month immediately following the month in which the Board decides his entitlement to the allowance, if the Board's decision is issued later. The Medical Board shall determine the continuity of the need of the assistance of others. The allowance shall become final if the need thereof continues to exist until the contributor attains sixty five years of age. ARTICLE (11) For the purposes of application of the provisions of paragraph 6(a) of Article (39), due regard shall be given to the following: 1. The previous wage shall mean the insured’s full contributory wage due for the last month of his contribution period or his full contributory wage preceding the date of establishment of his non-occupational disability whichever is greater. 2. The insured person shall not be deemed disabled if his disability is caused by suffering an infirmity or contracting a disease prior to the date of his actual registration with the Organization unless the appropriate Medical Board has discovered that the infirmity or disease has, after that date, deteriorated, which deterioration has resulted in a drop in the percentage of his incapacitation for work. ARTICLE (12) For the purposes of application of the provisions of paragraph (1) of Article (40) of the Law, due regard shall be given to the following : 1. In the event of the death of a compulsorily covered person while he is in an employment covered under the Law, irrespective of his age, and the insured person has had a contribution period of not less than three consecutive months or six nonconsecutive months following the completion of formalities for his actual registration with the Organization, his family members shall be entitled to heirs pension with effect from the beginning of the month immediately following the date of death. Such pension shall be computed in the same method as the non-occupational disability pension amount is computed.

2. In the event of the death of an insured person after leaving an employment covered under the Law, his family members shall be awarded the retirement pension which shall be paid with effect from the beginning of the month immediately following date of death, if he has completed ten years of actual contribution or has completed the same by adding the credited period provided for in paragraph (2) of Article (38) of the Law. In the latter case, the amount of the contributions due for the credited period shall be deducted from the accumulated pension payable to the deceased insured person prior to having it distributed between the family members; then one quarter of the pension share of each eligible family member will be deducted until the due amount is fully settled. ARTICLE (13) 1. For the purposes of application of the provisions of paragraph (1) of Article (41) of the Law, the entitlement to the lumpsum compensation at age sixty shall arise if the insured person has left the insurable employment. 2. For the purposes of application of the provisions of paragraph (2) of Article (41) of the Law, the amount of compensation due shall wholly be divided among the family members on equal basis. Where only one eligible member is available, the total amount of compensation shall be paid to him. 3. In the application of the provisions of paragraph 3(a) of Article (41) of the Law, the lumpsum compensation may be paid to the insured person who moves to another employment insurable under the Civil or Military Retirement Scheme without having to wait until he attains sixty years of age, provided that: a. his period of contribution under the Social Insurance Scheme has been terminated after the new Law has been put into effect; and b. his said period of contribution is considered for inclusion in the assessment of his entitlements under the Civil or Military Retirement Scheme, subject to the rules that will be issued by the Council of Ministers on the basis of the study that will be conducted by the Ministerial Commission formed by the Council for this purpose. 4. In the application of the provisions of paragraph 3(c) of Article (41) of the Law, the insured person may claim payment of the lumpsum compensation without waiting until he attains sixty years of age in the following cases in addition to the cases provided for in paragraphs 3(a) and 3(b) of the said Article : a. If he is engaged in arduous or unhealthy occupations provided for in Article (4) of these Regulations. b. If he is sentenced by a judical order for a term of imprisonment of five years or over, in which case the amount of compensation shall be paid to him in accordance with the provisions of paragraph (2) of Article (5) of these Regulations. c. If the insured person is deprived of his Saudi citizenship . ARTICLE (14) 1. For the purposes of application of the provisions of paragraph (4) of Article (41) of the Law, the insured person may, in any of the following two cases, repay the lumpsum compensation he has already received for a former contribution period in order to be credited to his contribution account: a. The insured person who has been in insurable employment on the date the Law is put into effect and has received a lumpsum compensation under the old Law may express his wish to re-include the relevant contribution period provided that he repays the compensation amount in full in one payment within one year from that date. However, if such re-inclusion does not render the insured qualified for pension when his contribution to the Scheme is terminated thereafter, the re-included period shall be deleted and the insured shall be refunded the compensation previously repaid by him. b. The insured person who subsequently resumes employment and has already received a lumpsum compensation under the new Law, may express his wish to re-include the relevant period, provided that he repays the compensation amount in full in one payment within one year with effect from the date of his re-employment. ARTICLE (15) 1. In the application of the provisions of paragraph (1) of Article (54) of the Law, if the insured person willfully injures himself or commits a criminal act causing contingency but remains alive, he shall not be entitled to the benefits provided for in the Law, but if he dies as a result thereof, his family members shall be entitled to the benefits payable under the Law. 2. In the application of the provisions of paragraph (1) of Article (55) of the Law, the

pensions payable during the term of imprisonment of the insured person shall be paid to his family members in accordance with the provisions of paragraph (2) of Article (5) of these Regulations. ARTICLE (16) In the application of the provisions of Article (58) of the Law, due regard shall be given to the following: 1. There shall be submitted an official document satisfactory to the Organization, evidencing the missing of the insured person in an incident that is almost fatal within or outside the Kingdom. 2. Where the Organization is not satisfied that the incident causing the missing of the insured person has not been almost fatal, any of his family members or whom it may concern may submit to the competent court a request for issuance of an order whereby the missing person is considered as dead in accordance with the provisions of the Shariah Law, in which case the Organization shall be liable to execute the ensuing order. 3. The provisions of this Article shall also apply to the case of missing of any of the family members who are eligible for pension, if the same is intended to re-distribute his share among the remaining eligible members. ARTICLE (17) 1. In the application of the provisions of Article (66) of the Law, if an insured under the old Law continues to be covered on the date on which the new Law is put into effect and his contributory wage has dropped as a result of excluding some allowances from the contributory wage elements pursuant to the provisions of paragraph 1(a) of Article (19) of the Law or consequent to restriction to the maximum contributory wage provided for in paragraph 1(b) of the said Article, and the total of his two contribution periods under the two Laws reaches the level required to give him the right to receive a pension, his pension shall be adjusted by one of the following two methods, whichever is better for him. a. The pension payable for the total of his former and subsequent contribution periods shall be computed in accordance with the provisions of paragraphs (b), (c) and (d) of Article (7) of these Regulations on the basis of the average contributory wage in the last two years of his subsequent contribution period. b. A separate pension shall be awarded for his contribution period completed under the old Law regardless how small it is. This pension shall be computed in accordance with the provisions of paragraphs (c) and (d) of Article (7) of these Regulations and on the basis of the average contributory wage in the last two years of the said period or the average wage for the said period if less than two years. There shall be added another separate pension for the subsequent contribution period completed under the new Law regardless how small it is, and such pension shall be computed on the basis of the average contributory wage in the last two years of this period or the average wage for the entire said period if it is less than two years, with due regard to the provisions of paragraph (b) of Article (7) of these Regulations. Provided always, the number of periods to be deemed as separate shall not be more than two periods of which the first is the one completed before the effective date of the new Law and the second is the one completed thereafter. 2. If the insured person referred to in the preceding paragraph is entitled to a lumpsum compensation under paragraph (1) of Article (41) of the Law, such compensation shall, with due regard to the rates provided for in the said paragraph of the Law, be computed in either one of the following two methods whichever is better for him: a. To compute the compensation for both periods on the basis of the average monthly contributory wage in the last two years of the last period. b. To compute the compensation for each period separately on the basis of the average monthly contributory wage in the last two years of the respective period or the average wage in the entire period if it is less than two years. SECTION III PROVISIONS CONCERNING VOLUNTARILY COVERED PERSONS ARTICLE (18) 1. In the application of the provisions of paragraph (4) of Article (4) and paragraph (4) of Article (8) of the Law, the voluntarily covered person shall be subject to all the provisions of the Law that are not contradictory to his status as voluntarily insured

person save where a special provision is set out therefore, with due regard to the following: a. The monthly income elected by the voluntarily covered person from among the income categories included in Schedule No. (1) attached to the Law shall be correspondent to the monthly contributory wage in respect of the compulsorily covered person, and the benefits entitled to him shall be computed with due regard thereto. b. One contribution month shall be recorded in favour of the voluntarily covered person against every month for which he has paid full contribution. c. The provisions of paragraph (2) of Article (19) and paragraph 3(c) of Article (38) of the Law shall not apply to the voluntarily covered person. 2. In cases where the voluntarily covered person elects under Article (8) of the Law an income category exceeding his last wage in his compulsory coverage by more than 10% or exceeding a category higher than such percentage (if the percentage falls between two categories), the benefit payable to him for his compulsory coverage period shall be computed on the grounds that it is an independent period, although it shall be taken into consideration upon the determination of the kind of benefit (pension or lumpsum compensation, as applicable) due to him for the total contribution periods. 3. If the voluntarily covered person is entitled to pension for his compulsory contribution period, he shall be treated in accordance with the provisions of paragraph (4) of Article (38) of the Law, without prejudice to the provisions of the preceding paragraph (2). 4. The voluntarily covered person may not claim payment of pension by reason of attaining sixty or more years of age unless his actual contribution period preceding the discontinuation of his coverage is of the level that gives him the right to receive a pension under the provisions of paragraph 1 (a) of Article (38) of the Law, with due regard to the provisions of paragraph (5) of Article (19) of these Regulations. ARTICLE (19) 1. For the purposes of application of the provisions of Articles (39) and (40) of the Law, the voluntarily covered person shall be treated the same as the insured person who was afflicted with disability or died while he had been in employment, if he had paid all the contributions due until the end of the month preceding the month in which the disability or death occurred, provided that payment should have actually been effected prior to such date. Where this condition is not fulfilled, the insured person shall be treated the same as the insured person who is afflicted with disability or dies after he leaves the insurable employment. 2. In the application of the provisions of Article (45) of the Law, to accept his application for early retirement prior to reaching age sixty, the voluntarily covered person shall produce to the Organization such documents as may prove the discontinuation of his activity or employment on which basis he has participated in the Scheme, such as cancellation of the commercial register or sale or liquidation of the establishment, provided that he has not been engaged in any of the activities or employments covered by the Law. 3. If a voluntarily covered person has received early retirement pension and has, subsequently, resumed activity or employment before age sixty, he shall be treated as follows: a. If he is re-engaged in any activity or employment that permits the insured person to qualify for voluntary coverage, his pension shall be put on hold even if he has not requested to have a voluntary coverage, in which case the pension shall remain on hold until the date on which he leaves such activity or attains sixty years of age and continues to be unwilling to participate in the Scheme again, whichever of the two dates is earlier. b. If the insured person resumes a compulsorily covered employment, he shall be treated in accordance with the provisions of paragraph 4(a) of Article (38) of the Law. 4. If, prior to attaining age sixty, the voluntarily covered person fails to notify the Organization of his resumption of any activity through which he may request to have voluntary covarage or become subject to compulsory covarage, the Organization may, as soon as it is aware thereof, suspend his pension and claim him to repay the pensions he has unlawfully received plus the fines imposed by the Law. 5. For the purposes of application of the provisions of paragraph (3) of Article (8) and Article (46) of the Law, the voluntarily covered person’s discontinuation of payment of contributions shall not have effect on the lawfully prescribed times of entitlement to benefits. Where the time of entitlement falls due and it is discovered that his total contribution periods do not qualify him for pension, his membership shall be cancelled and the total contributions paid by him shall be refunded to him or to his family, as applicable.

SECTION IV DESIGNATION OF THE FAMILY MEMBERS AND THE METHOD OF COMPUTATION OF THEIR ENTITLEMENTS ARTICLE (20) 1. For the purposes of designation of the family members who are eligible for survivors pension under the provisions of paragraph (8) of Article (2) of the Law, due regard shall be given to the following definitions and conditions: a. "Widow of the deceased insured person" is the wife of the deceased at the time of his death or his divorcee by revocable divorce, if the death occurred during the waiting period. b. "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. c. "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. d. "Daughters" are the daughters of the deceased insured person until they marry. e. "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. f. "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. g. "Mother" is the mother of the deceased insured person who was supported by the insured person until the date of his death. h. "Grandfather" is the grandfather of the deceased insured person who was supported by the insured person until the date of his death, provided that he is suffering a loss of earning capacity, subject to the same conditions applicable to the father. i. "Grandmother" is the grandmother of the insured person who was supported by the insured person until the date of his death. j. "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 without being required to be orphans so long as they were supported by the insured person until the time of his death. 2. The appropriate Medical Board shall determine the earning incapacity state for the purposes of application of the preceding paragraphs, after reviewing the medical reports presented by the beneficiary. ARTICLE (21) 1. In the application of the provisions of paragraph (8) of Article (2) of the Law, the person shall be considered as dependent on the insured person or pensioner if he depends in meeting any of his basic elements of living expenses on the money given to him by the insured person or pensioner. The dependency shall be invalid if the beneficiary earns from an employment an income equivalent to or exceeding his share of pension of the insured person or pensioner. Nevertheless, he may combine his pension share with his employment income within the limits prescribed in paragraph (9) of Article (38) of these Regulations. 2. The satisfaction of the dependency condition shall be evidenced by a legal deed. ARTICLE (22) For the purposes of application of the provisions of Article (40), and paragraph (2) of Article (41) of the Law, the family members provided for in paragraph (8) of Article (2) of the Law shall include the unborn child whose entitlement shall be retained by the Organization until it is born when it shall be paid in accordance with the following: a. If the child is born alive, his/her retained share shall be paid. b. If more than one newborn is delivered, the retained accumulated pension amount shall be distributed equally between them, and the survivors pension shall be re-

distributed among the eligible family members in accordance with the rules set forth in paragraph (2) of Article (35) of the Law with effect from the beginning of the month immediately following the date of delivery of the newborn. If the entitlement retained by virtue of the preceding paragraph is a lumpsum compensation, it shall be distributed equally between the newborns. c. If the child is stillborn, the shares of the family members shall be re-distributed equally among the remaining eligible family members in accordance with the provisions of paragraph (2) of Article (35) or paragraph (2) of Article (41) of the Law, as applicable. ARTICLE (23) Subject to the provisions of paragraphs (3) and (4) of Article (35) of the Law, due regard shall be given to the following: 1. The pension payable to the widow, daughter, sister or granddaughter shall be discontinued if she marries. If she is divorced or widowed thereafter, payment of her discontinued share shall be resumed in the same amount she used to receive, if her share has not been redistributed among any of the other eligible survivors. However, if such share has wholly or partly been redistributed among any of the eligible survivors, the deceased's pension shall be redistributed among all the eligible family members who are still entitled to the pension. 2. The pension of the incapacitated son, brother or grandson shall be cancelled in case he is no more incapacitated. However, if he is re-incapacitated, his discontinued share shall be resumed to him in the same amount he used to receive, if it has not been redistributed among any of the other survivors. If such share has wholly or partially been redistributed among any of the eligible survivors, the deceased's pension shall be redistributed among all the eligible family members who are still entitled to the pension. 3. If the daughter, sister or grand-daughter, who was married at the time of death of the insured person, is divorced or widowed, the deceased's pension shall be redistributed among all eligible family members who are still entitled to pension, for the purpose of granting her the payable share. 4. If a change has occurred in the number of the family members, and such change has affected the amount of the share received by the member whose entitlement to pension has been reinstated, the survivors pension shall be redistributed among all eligible family members who are still entitled to pension. 5. As an exception to the provisions of paragraph (1) of Article (20) of these Regulations, if a family member has not been included in the family members eligible for the insured person’s pension at the time of his death and has, thereafter, filed a claim for payment of a pension share and presented an evidence confirming that he/she was supported by the insured person at any time before the insured person died, his/her share of the pension shall be paid non-retroactively, with due regard to the provisions of Article (21) of these Regulations, provided that it is paid within the limits of a pension surplus that has not been distributed, and that payment of the same will not affect the pension shares of the other beneficiaries, without prejudice to the provisions of Article (57) of the Law. This provision shall apply regardless whether the death of the insured person has taken place before or after the effective date of the new Law (1). ARTICLE (24) With due regard to the provisions of paragraph (1) of Article (15) of these Regulations, if a family member has intentionally caused a risk to arise or committed a criminal act against the insured person, such member shall not be entitled to any benefit, and the benefit payable to the family members shall be computed on the grounds that the deprived member does not exist. ARTICLE (25) For the purposes of application of the provisions of Article (51) of the Law, the death grant shall fully be distributed among the eligible family members on equal basis. If only one eligible member is available, he shall be entitled to the whole grant, and the Governor shall determine such procedures and documents as may be required for payment of such grant. SECTION V

THE PAYMENT PROCEDURES AND THE REQUIRED DOCUMENTS ARTICLE (26) 1. The Governor shall determine such documents and forms as may be required for the payment of benefits. He may, for example, rely on the data produced by the computer of the Organization and the relevant microfilm copies for the purposes of payment of entitlements to the insured persons and their family members, in which case such data and copies shall be deemed to be sufficient documents for payment. 2. The employer shall, upon termination of the service of an insured person, notify the appropriate office of the Organization of the termination of service and the date and reason of termination, within the first fifteen days of the month immediately following the month of termination of his service in accordance with such format as may be determined by the Governor. 3. The application for payment of benefits due under the Law shall be submitted by the insured person or his family members, as applicable, to the nearest office on such form as may be determined by the Governor, and the required documents shall be associated therewith. The office shall contact the beneficiaries to complete any missing and to request the help of the employer in contacting them, if necessary. ARTICLE (27) The Organization shall take such measures as may be necessary to ensure the assessment and payment of the pensions and compensations within two weeks at the most from the date of submission of the application duly completed and associated with the required documents. ARTICLE (28) 1. The eligible survivors of the insured person shall, in the event of their entitlement to the survivors' pension or lumpsum compensation under the provisions of Articles (40) and (41) of the Law, attach the following documents to the application for payment : a. Certificate of death of the insured person or an official document acceptable to the Organization specifying the date of death. b. An officially certified document listing the names and ages of the beneficiaries. c. The marriage contract of the insured person’s widow or widows, if available, or any other official document to this effect. d. A document, stating that the deceased insured person was, at the time of his death, supporting the family member applying for payment, in the manner described in Article (21) of these Regulations, and such document shall not be required in respect of the widow, sons and daughters. e. A document, acceptable to the Organization, indicating the regular enrollment in educational or vocational institution of the sons, grandsons and brothers whose ages exceed twenty one years at the commencement of entitlement or thereafter, and such document shall be renewed annually until the completion of study or attainment of twenty six years of age whichever is earlier, or medical reports confirming their earning incapacity, as applicable, shall be submitted for presentation to the Medical Board for determining the state of disability. f. An official document evidencing that the widower, father or grandfather has attained sixty or more years of age and is unemployed, but if he is under that age he shall submit a medical certificate confirming his earning incapacity for presentation to the Medical Board to determine the state of incapacitation . g. Such other documents as the Governor may deem necessary to be attached to the application for payment. ARTICLE (29) 1. The pension share shall be paid to the respective beneficiary if he has attained eighteen years of age. 2. The pension share of the minor or the incompetent person shall be paid to his guardian or custodian designated by a legal document explicitly stating that the guardian or custodian is authorized to receive the pension, and such document may be submitted at any time so long as the entitlement to pension exists. 3. In case of failure to submit the document provided for in the preceding paragraph together with the other documents required for payment, the appropriate office shall pay the share of the minor or incompetent person to the person living with him if he is

the father, the grandfather, the mother or the most matured of his brothers, as indicated in the documents, until a legal document designating a guardian or custodian is submitted to the office, in which case the relevant payment shall accordingly be made with effect from the pension of the month next to the date on which the said document is submitted (1). ARTICLE (30) Without prejudice to the provisions of the preceding Article, if the applicant for payment is a guardian, custodian or an agent of the recipient of a pension or compensation or of his eligible family members, the applicant shall attach to the application for payment: a. a power of attorney issued by the appropriate authority or a power of attorney signed by two witnesses to be prepared by the proxy before the competent employee and approved by the Office Director, and the power of attorney in both cases shall be renewed in regular intervals to be determined by the Governor. In exception of this provision, the legal document issued by the appropriate authority shall be accepted in respect of payment to a female eligible family member only and the power of attorney for overseas pension payment shall be accepted in respect of pensions payable to Saudis only (2) . b. or the decision appointing him as guardian, custodian or agent of an absentee, as applicable. ARTICLE (31) The recipient of a pension or compensation or any of his eligible family members shall indicate, in the application for payment, the method of payment to be chosen from such methods as may be specified by the Organization. Likewise, the beneficiary may, for reasons acceptable to the Organization, request that the method of payment of the periodical benefits be changed for subsequent months, provided that the pensions or other benefits shall be paid within the Kingdom. Nevertheless, the Governor may, in such exceptional cases as he may determine, accept to have payment made outside the Kingdom in accordance with the procedures and conditions to be determined by him. ARTICLE (32) The Organization shall notify the beneficiary of all the particulars related to the pension or compensation due to him, the amounts withheld, if any, the net amount due for payment, the agency through which payment will be made, and the conditions under which such payment shall continue to be made. ARTICLE (33) 1. Entitlement to pension shall take effect on and from the beginning of the month immediately following the month in which the condition qualifying for entitlement arises, and pension shall be paid in advance with effect from the said date, provided that the regular payment of pensions shall be made within the first week of the month. Nevertheless, by decision of the Governor, the time of payment may be made earlier, if he deems such arrangement is suitable. 2. Entitlement to pension shall be terminated at the end of the last day of the month in which the incident required for termination of entitlement has arised. ARTICLE (34) In agreement with the paying agencies, the Governor shall determine the period during which the benefits shall continue to be payable by the said agencies and the dates on which unpaid benefits shall be returned to the Organization. The Governor shall, by decision, regulate the cases in which payment shall be made by the offices of the Organization. ARTICLE (35) 1. The pensioner or his eligible family member shall notify the appropriate office of any change affecting his entitlement to pension, particularly if he is engaged in paid work. If he fails to do so, or refrains from providing the office with the information it requires or provides erroneous information, or fails to respond to the date specified by the office, or if the office has any doubt in respect of the submitted documents, the office Director shall have the right to suspend payment of all or part of the pension until it is

ascertained that the beneficiary is entitled to the payment. When payment to the beneficiary shall be resumed without prejudice to the provisions of the next paragraph and the provisions of Article (39) of these Regulations. 2. The pensioner or his eligible family members or their representative by Law or by agreement, shall submit to the Organization on the dates determined by the Governor a declaration signed by two witnesses on such form as may be determined by the Governor for this purpose to prove that they still meet the conditions qualifying for the pension or to be signed by the pensioner or his eligible family members, as applicable, before the competent official. Payment of the pension shall be suspended in case of failure to submit the said form on the fixed date, and it shall be resumed only after the form is submitted so long as the conditions for entitlement to pension are still fulfilled. Before suspending payment, the Governor may give the applicant for payment a grace period for submitting the said declaration. The periods provided for in Article (57) of the Law shall become applicable upon the expiry of the said grace period, with due regard to the rules provided for in Article (40) of these Regulations. ARTICLE (36) The recipient of a non-occupational disability pension shall report to the appropriate Medical Board for medical re-examination on the dates fixed by the Board to establish that his state of disability continues. If, without a reason acceptable to the Office Director, he refuses to submit himself to such medical examination, the payment of pension shall be suspended until he submits himself to the medical examination, when payment of his pension shall be resumed without prejudice to the provisions of Article (40) of these Regulations. This provision shall also apply to any of the family members qualifying for pension as a result of the earning incapacity. SECTION VI GENERAL PROVISIONS ARTICLE (37) With due regard to the provisions of Article (48) of the Law and Article (25) of the Registration and Contribution Regulations, the age shall, for the purposes of entitlement to benefits, be determined in accordance with the Hijrah calendar. However, if the date of birth is indicated in Gregorian, the corresponding date in Hijrah shall be taken. In case the day and month of birth are not specified, the date of birth shall be the first day of the seventh month of the Hijrah or Gregorian calendar year of birth, as applicable. ARTICLE (38) The combination of two or more benefits payable under the Law or the combination of a benefit with the wage shall be within the following limits and terms: 1. The insured person may combine both the benefit and the pension payable to him as an insured person but within the limits provided for in paragraph 3(a) of Article (55) of the Law. The total amount that is accordingly payable to him shall be the amount distributable among his family members after his death. 2. The insured person or his eligible family members, as applicable, may combine the lumpsum compensation payable under the Occupational Hazards Branch with the benefits payable under the Annuities Branch. He or they may also combine the lumpsum compensation payable under the Annuities Branch with the benefits payable under the Occupational Hazards Branch. 3. The sons and daughters may combine their pension or benefit share payable in respect of their father with that payable in respect of their mother. 4. The grandsons and granddaughters may combine their monthly benefit or pension payable in respect of the insured person with that payable in respect of their father or mother. 5. The widow may combine the benefit or pension payable in respect of herself with that payable in respect of her husband, and the same provision shall apply to the qualifying widower. 6. The family member who is eligible for pension shall combine the monthly pensions with the benefits due to him if he is suffering an earning incapacity provided for in Article (20) of these Regulations. 7. In cases other than those provided for in the preceding paragraphs, if a person qualifies for more than one pension or a pension and benefit under the provisions of the Law, he shall only be paid the higher between them. However, if the higher benefit or pension is less than SR 3,000 (three thousand Saudi Riyals), he shall be paid from the

amount of the other benefit or pension such portion as may make up his total amount to reach the said maximum. 8. The widow shall combine her benefit or pension share payable in respect of her insured husband with her work income. 9. If any of the eligible family members, save for the widow of the insured person, works for a wage equivalent to or exceeding his pension or benefit share, his pension or benefit payment shall be suspended. Should the amount of pension or benefit exceed the amount of wage, the former shall be reduced to match the latter. Nevertheless, he may combine the two within the limit of SR 3,000 (three thousand Saudi Riyals), and if the wage is less than the said maximum limit, he shall be granted the balance to make up such maximum limit (1) . 10. For the purposes of application of the provisions of paragraph 3(d) of Article (55) of the Law, each family member may combine more than one grant payable under Article (51) of the Law in respect of more than one insured person . 11. The foregoing provisions shall not prejudice the provisions of the Occupational Hazards Branch Benefits Regulations related to the cases and limits of combination of the daily allowance with other benefits. ARTICLE (39) The Organization may in all cases recover the pensions or compensations whatsoever received by the insured person or any of his eligible heirs in excess of the sum he is entitled to under the Law by withholding the excess amount of other amounts which may be due to him from the Organization. If no amount is so due, he will be claimed to repay the same by statutory methods, with due regard to the following provisions. 1. Without prejudice to the provisions of paragraph (2) of this Article, if the excess amount is paid in the form of a pension or any other form of payment regularly made to the insured person or to his eligible survivors, it shall be rectified and recovered by deducting the same from the amount accumulated for the insured person or his eligible survivors, as applicable, or from his/their monthly entitlements by monthly installments not exceeding 10% of the monthly payment or otherwise at a higher rate not exceeding 25% monthly as agreed by the beneficiary. 2. If the excess payment is made to an eligible survivor of the insured person for whose entitlements are still available with the Organization, the excess amount shall be recovered from his share without claiming the remaining survivors to repay except within the limits redistributed to them in case of termination of his eligibility for benefit. 3. If the excess payment is caused as a result of incorrect information provided by the insured person or one of his eligible survivors or the one who acts on their behalf, the Organization may apply thereto the provisions of Article (62) of the Law as well as require him/them to repay the excess payment. 4. In cases where the Organization fails to recover the excess payment, the Governor may claim the causing official(s) for payment of the same, if it is established by investigation that they have not showed the caution expected from the ordinary official. 5. The Governor may, for justifiable reasons determined by him, disregard recovery of excess payment in cases where there are no other amounts due from the Organization to the insured person or his eligible survivors to which a deduction can be applied. ARTICLE (40) For the purposes of application of the provisions of Article (57) of the Law, claims for transportation and lodging allowances and decedent'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 entitlement to benefit arises, unless there is an excuse acceptable to the Governor, with due regard to the following rules: 1. The application for payment submitted by one of the beneficiaries shall interrupt the prescribed period in respect of the remaining beneficiaries who have not applied for payment of their entitlements. 2. The application submitted for payment of any kind of benefits shall be deemed an application for payment of the remaining benefits due. Likewise, the application submitted by an insured person for establishment of his non-occupational disability shall be deemed an application for payment of entitlements due under the Law and these Regulations. 3. If the application for payment is submitted as provided for in the preceding two paragraphs with complete address and paying agencies shown therein, and such

application is received within the time limit prescribed in Article (57) of the Law, the entitlement to pension shall remain valid until the beneficiary receives his first pension from the Organization notwithstanding that the completion of documents and information may be delayed. However, in case of an application with incomplete documents and information, the Organization shall endeavor to contact the beneficiary by using all available means of communication, including advertising in the information media and approaching the employer and the beneficiaries' relatives if known to the Organization, in which case the time limit provided for in Article (57) of the Law shall restart on and from the date of the first letter issued by the Organization for the completion of the required documents and information. 4. As for the regular pensions due after the payment of the first pension, the provisions of Article (57) of the Law shall apply to each such pensions, should the beneficiary fail to apply for payment thereof. 5. If the application for payment is submitted to the Organization as provided for earlier after the lapse of the time limit prescribed in Article (57) of the Law, and the Organization accepts the excuse for delay, the Organization shall pay to the beneficiary his full entitlements due with effect from the date on which such entitlement arises. However, if the Organization refuses his excuse, it shall pay the monthly pension with effect from the pensionable month in which the application is submitted in addition to the pensions payable for the past twelve months. 6. The provisions of this Article shall not prejudice the time limit prescribed for presentation of the non-occupational disability case to the Medical Board to establish the state of disability provided for in paragraph (2) of Article (39) of the Law. | ARTICLE (41) For the purposes of application of the provisions of Article (61) of the Law, the insured person or his eligible survivors, as applicable, shall have the right to appeal to any decision issued by any agency of the Organization in connection with entitlement to or method of computation of benefits. The submittal and hearing of appeals shall be done in accordance with the detailed provisions set forth in the Registration and Contribution Regulations. SECTION VII

TRANSITIONAL PROVISIONS

ARTICLE (42) 1. For the purposes of application of the provisions of Article (67) of the Law, the following rules shall apply: (a) The oldage pensions and the non-occupational disability pensions payable to the insured person under the old Law and continue to be payable on the effective date of the new Law shall be raised to SR 1,500 (one thousand five hundred Saudi Riyals) if they are less than such amount, with due regard to the provisions of paragraph (d) of Article (7) of these Regulations, as regards the family allowance. (b) The allowance for the need for assistance of others payable to the recipients of non-occupational disability pension shall be reassessed on the basis of the pension after it is raised to the minimum limit (1). 2. The pension shares of the family members payable under the old Law and continue to be payable on the date the new Law is put into effect, shall be revised by having their deceased breadwinner's pension amount raised to SR 1,500 (one thousand five hundred Saudi Riyals), if it is less. If, after such raise, the share of any family member is less than SR 300 (three hundred Saudi Riyals) per month, it shall be raised to that much, 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 computation of the breadwinner's pension, whichever is greater. 3. The provisions of the preceding two paragraphs shall apply to the Saudi insured person and their family members as well as to the non-Saudi insured person and their family members who receive their pensions within the Kingdom, provided that they have permanent residence permit. 4. The provisions of the preceding paragraphs shall apply with effect from the beginning of the month immediately following the date on which the new Law is put into effect. ARTICLE (43) For the purposes of application of the provisions of paragraph (2) of Article (69) of the Law, the following rules shall apply: 1. The provisions of the new Law shall apply to any new incident arises under the new Law and affects the entitlements of insured person who have ended their period of contribution and qualified for pension under the old Law and the entitlements of their family members, for example where the pensioner is re-engaged in an insurable employment, the widow, daughter, granddaughter, or sister is divorced or widowed and the sons and brothers are past the age qualifying for pension, with due regard to the provisions of the next paragraphs: 2. The family members' pensions payable under the old Law and continue to be payable on the date the new Law is put into effect shall remain subject to the provisions of the old Law for the purposes of identifying the family members who are eligible for pension, their pension distribution percentages, and re-instatement of the cancelled shares of the other members. As an exception to this provision, the Governor may include any of the new eligible family members added under the new Law such as the widower, grandfather, grandmother, the insured person’s grandsons and granddaughters whose father died during the lifetime of the insured person and the divorced or widowed daughters, sisters and other survivors provided for in the new Law, and grant them shares of the insured person’s pension, in cases where the breadwinner's pension has not been wholly distributed, and such shares shall be within the undistributed balance and on the basis of the percentages provided for in the old Law. 3. The insured person whose period of contribution has been terminated prior to putting the new Law into effect and has not received the lawfully payable benefit for such period and is not qualified for pension under the old Law shall be entitled to receive a pension subject to the conditions and provisions set forth hereunder : 3.1 The insured person who has completed a contribution period of at least 120 (one hundred twenty) months and has attained or exceeded age sixty

before or after the Law is put into effect, shall be entitled to claim payment of a retirement pension. 3.2 The insured person who has completed a contribution period of at least 300 (three hundred) months before the Law is put into effect, may claim payment of early retirement pension. 3.3 The female insured person who has completed a contribution period of at least 120 (one hundred twenty) months and has attained or exceeded age fifty five before or after the Law is put into effect may claim payment of retirement pension. 3.4 The insured person who is engaged in arduous and unhealthy works and has completed a contribution period of at least 120 (one hundred twenty) months and has left employment before the Law is put into effect, may claim payment of retirement pensions subject to the same provisions of paragraph (3) of Article (4) of these Regulations. 3.5 If the insured person is sentenced for a term of imprisonment, his family members may benefit from the retirement pension advantages in accordance with the provisions of Article (5) of these Regulations notwithstanding that the term of sentence is issued before and extends beyond the effective date of the Law or is issued after the effective date of the Law. 3.6 The insured person who has attained age sixty or over before or after the Law is put into effect and has completed a contribution period of 60 (sixty) or more months but less than 120 (one hundred twenty) months, (or his family members in the event of his death) may claim to have credit periods in accordance with the provisions of Article (6) of these Regulations, so long as the other lawfully prescribed conditions are satisfied. 3.7 The insured person who is afflicted with a non-occupational disability or dies before or after the new Law is put into effect, or his family members, as applicable, shall receive the respective pension payable under the old Law. However, in case of failure to satisfy the conditions qualifying for the said pension, he or they, as applicable, shall be paid the pension payable to the insured person who is afflicted with a non-occupational disability or dies after leaving employment, in accordance with the provisions of paragraph (2) of Article (39) or paragraph (1) of Article (40) of the new Law, as applicable, by inclusion of the credit period. 4.1 The insured person who has received a lumpsum compensation during the year immediately preceding the outset of the new Law as a result of his attainment of age sixty or over or his affliction with a non-occupational disability, shall be entitled to receive the retirement pension in the following two cases : a. If his contribution period is equivalent or exceeding 120 (one hundred twenty) months.

b. If his contribution period is 60 (sixty) or more months but less than 120 (one hundred twenty) months, in which case he shall be credited a period to the extent that makes up 120 (one hundred twenty) months, in accordance with the provisions of Article (6) of these Regulations. In case the said insured person dies in 1421 H or 1422 H, his family members may apply for benefiting from the provisions of this paragraph. The Governor is authorized to specify the supporting document evidencing that compensation has been paid in 1421 H. 4.2 To benefit from the provisions of the preceding paragraph 4.1, the insured person or his family members shall repay the lumpsum compensation that the insured person has already received, provided that repayment of the same shall be made in one payment within one year from the date on which the Law is put into effect or one year from the date of death of the insured person, as applicable. 5.1. The pension payable in the above cases shall be computed on the basis provided for in the old Law with the allowance for the need for help of others and the allowance for dependants, as may be payable, added to it, without prejudice to the provisions of paragraphs (c ) and (d) of Article (7) and paragraph (2) of Article (42) of these Regulations. 5.2 In exception of the provisions of the preceding paragraph, the pension for the credited period included under paragraphs (3.6) and (3.7) of this Article shall be assessed in accordance with the provisions of paragraph (b) of Article (7) of these Regulations. 5.3 Save for the provisions of the preceding two paragraphs (5.1) and (5.2), the insured person and the family members, as applicable, shall be subject to all the provisions of the new Law including the provisions pertaining to the identification of the family members eligible for pension and their shares. 6. The pensions payable in pursuance of the preceding paragraphs shall be entitled to with effect from the respective dates fixed as follows: a. With effect from the date of attaining age sixty, provided that the date of implementation of the Law has not come earlier, in respect of the pensions payable under the provisions of paragraph (3.1) of this Article. b. With effect from the beginning of the month immediately following the date of application for payment, in respect of the application for early retirement pension before attaining age sixty in accordance with the provisions of paragraphs 3.2, 3.3 and 3.4 unless the insuredperson has already attained age sixty in which case he shall be subject to the provisions of the preceding paragraph (a). c. With effect from the date of putting the Law into effect, in respect of the pension payable under the provisions of paragraph (3.5).

d. With effect from the date of putting the Law into effect, in respect of the pension payable in accordance with the provisions of paragraph (3.6) for anyone who has attained age sixty or over before the Law is put into effect and with effect from the date on which he has attained the said age for the one who has attained it after the Law is put into effect. e. With effect from the beginning of the month immediately following such date as may be fixed by the Medical Board for the establishment of the disability, or from the beginning of the month immediately following the date of death, as applicable, in respect of the pensions payable in accordance with the provisions of paragraph (3.7). 7. The female insured person who has not attained sixty years of age and has no access to pension in accordance with the provisions of the preceding paragraphs may file a claim for payment of the lumpsum compensation she is entitled to. 8. In all cases of entitlement to pension by those whose contribution period has been terminated prior to putting the new Law into effect under the provisions of this Article or the old Law, which pension becomes due after the date on which the new Law is put into effect or has not been paid by the said date, the average wage taken as a basis for the assessment of the pension shall be computed in accordance with the provisions of paragraph (3.c) of Article (38) of the Law. 9. a The provisions of Article (38) of these Regulations as regards combination of the pension with the benefit or pension or benefit with the wage shall apply to those who have been entitled to pensions or benefits payable under the old Law and whose entitlement thereto has been discontinued because the provisions of that Law do not permit combination of benefits with benefits or benefits with wages. However, this provision shall take effect if an undistributed surplus of the pension or benefit is available, in which case the provisions of Article (38) of these Regulations shall be applicable within such surplus, provided that the application of the provisions of this paragraph shall not result in payment of any sums for the period preceding the effective date of the new Law. 9.b Sons, grandsons and brothers who have been entitled to pensions or benefits under the old Law and payment of their entitlement has been discontinued due to attaining age 20 or age 25 (for students), payment of their entitlements shall be resumed until age 21 or age 26, as applicable, provided that an undistributed pension surplus is available and paid within the limit of the available surplus and that this will not result in payment of any amount for a period preceding the effective date of the new Law. The provisions of this paragraph shall exclusively apply to the sons, grandsons and brothers who are Saudi nationals or non-Saudi nationals permanently residing in the Kingdom. 10. The provisions of paragraph 4.a of Article (38) of the new Law shall apply to the pensioners who have resumed work insurable under the old Law and whose payment of pension has been discontinued under the provisions of

paragraph (4) of Article (38) of the old Law and remained discontinued until the effective date of the new Law, provided that this shall not result in payment of any sum for a period preceding the effective date of the new Law.

OCCUPATIONAL HAZARDS BRANCH BENEFITS REGULATIONS
SECTION I METHODS AND PERIODS FOR REPORTING EMPLOYMENT INJURIES ARTICLE (1) 1. The injured person, if his condition so permits, or the one who acts on his behalf, shall notify the employer within seven days after the injury’s occurrence , deterioration or complication takes place or the disease is discovered even if his case does not prevent him from continuing to perform his duty. If the injured person fails to report the injury to the employer, he shall not be entitled to claim the daily allowance provided for in paragraph (1) of Article (30) of the Law. If he reports the injury after the prescribed period, he shall not be entitled to claim the allowance for the period preceding the notification unless failure or delay to notify is caused by justifiable reasons acceptable to the director of the appropriate office. 2. The employer, or the one who acts on his behalf, shall notify the appropriate office of the employment injury for which first-aid is insufficient, within three days after he is informed of the injury or takes note of its occurrence. In the event of his delays in reporting the injury, without an acceptable reason left to the discretion of the office director, the Organization shall ask him to pay the daily allowance due to the injured person for the period preceding the notification. The receipt of a notification of injury or a copy thereof by the office from the treatment center or a notification of occurrence of injury from any government agency, shall be deemed as a reporting of the injury. 3. In case the injury deteriorates or becomes complicated, the injured person shall so notify the appropriate office in the place where he resides if he is not assuming any employment or is assuming an uninsurable employment or is assuming an insurable employment with an employer other than the one where the original injury is sustained in the course of or by his work for him, within the period and in accordance with the procedures set out in paragraph (1) of this Article. The appropriate office shall notify the employer of the current situation.

Section II
SECTION II MEDICAL CARE ARTICLE (2) With due regard to the provisions of Article (5) of these Regulations, the employer shall, after providing the necessary first-aid, carry the injured person, if necessary, to the treatment center already designated for him and entered into contract with the Organization or to the public hospitals or health centers belonging thereto. ARTICLE (3) 1. Under medical care, treatment whatsoever shall be provided to the injured person according to his physical condition and for as long as his condition requires such treatment until he is fully recovered or his condition is stabilized, as decided by the treatment center. The appropriate office shall follow up the treatment and may by its physician or Medical Board, as applicable, examine the patient at the treatment center to make the proper decision as to the discontinuity of the need for the treatment as a result of recovery or stabilization of the condition. 2. Treatment shall include the following: a. Treatment of disfiguration resulting from the injury in cases decided by the Primary Medical Board to be necessary in order to enable the injured person to continue performance of his work satisfactorily, or because the disfiguration affects his normal social life according to the Board's judgment. b. Rehabilitation of the injured person and preparing him physically and professionally if his condition so requires. c. Provision and maintenance of artificial limbs and compensatory appliances and the like and replacement thereof, as needed, within the Kingdom, if their damage or breakage is not due to the injured person's negligence or his failure to observe treatment instructions. d. Treatment of illness which will result in the injured's recovery from the employment injury as determined by the treatment body and approved by the physician of the Office in respect of each case. e. Treatment of illness that may be caused to the injured person sustaining an employment injury during his admission to the hospital for the treatment of the injury regardless whether such illness is caused by the complications of the injury or results from the method of treatment or caused by infectious virus arised out of his hospitalization for the treatment of his employment injury or due to his exposure to casual incident during his hospitalization for that purpose. The disability resulting from the said illness cases shall not be

considered as an employment injury unless the illness is caused by complications of the injury. f. Treatment of deterioration or complication of the injury notwithstanding that the injured person may have not been in an insurable employment at the time of occurrence of the injury. ARTICLE (4) 1. The Organization shall take the necessary measures for the treatment of and provision of medical care to the injured person at the hospitals, medical centers and private clinics owned by it or entered into contract with for this purpose. If the required medical treatment is not available at such places, the Organization shall provide it at the public hospitals or its own health centers, according to the available facilities. 2. The Organization may agree with any private medical center or any of the employers who have special centers for the treatment of and provision of the necessary medical care to their injured workers regardless whether or not such bodies have entered into contract with the Organization. The treatment expenses shall be reimbursed to such centers as agreed under contracts concluded between them and the Organization or for each case separately as per the prices agreed with the treatment centers entered into contract with the Organization. However, where no medical facilities are available at such centers for the treatment of certain injury cases, such cases shall be referred to the Organization's contracted medical bodies where the treatment facilities are available. ARTICLE (5) 1. In emergency cases, the injured person may resort to a licensed private treatment body such as a physician, private medical clinic or private hospital, provided that his condition does not tolerate transporting him to the treatment body already designated by the Organization, and that the injured person or the employer shall notify the appropriate office to this effect within three days from the date of resort to the said treatment body. The Office physician shall decide whether or not an emergency case exists. The Office Director may, for justifiable reasons, forego the delay in reporting. 2. The Organization shall have the right to transfer the injured person to the treatment body already designated if his condition allows such transfer. 3. The Organization shall pay the expenses of the treatment of the injured person at the treatment bodies referred to in paragraph (1) above within the prices already specified by the treating body according to the Governor's decision. The Governor may set out the maximum limits which shall be taken into account in payment of the expenses of treatment of various injuries at the said treatment bodies.

4. In exception of the provisions of paragraph (3), the Organization shall only pay the treatment expenses payable under the said provisions within the expenses limits prescribed by the treatment bodies owned by or entered into contract with the Organization, in the following cases: a. If notice is not served within the period prescribed in paragraph (1) above, and the director of the appropriate office has not accepted the excuse for delay. b. If the injured person refuses to move to the treatment body designated by the Organization under the provisions of paragraph (2), above. c. If the Organization discovers that the injured person's condition is not an emergency case that necessitates resort to a treatment body other than those already designated by it. 5. If the required medical treatment is not available at the treatment body entered into contract with the Organization where the injured person is admitted as an inpatient, he shall be transferred to such other treatment body where the required treatment is available as specified by the Office Director regardless whether the Organization has or has not entered into contract therewith, in which case the Organization shall be responsible for the cost of his treatment at the medical center to which he has been transferred. However, if he has been transferred without the approval of the appropriate Office Director, the treatment costs shall only be reimbursed by the Governor's approval and within the rates of the medical centers contracted with or owned by the Organization. ARTICLE (6) 1. The Organization shall bear the expenses of the injured person's two-way transportation from the workplace or his residence (as applicable) to: a. the place where he receives treatment in accordance with the provisions of these Regulations; b. the place where the compensatory appliance is being installed and he is being rehabilitated to use it ; and c. the place where medical tests of any kind are conducted by the treatment bodies, the Organization's doctor or the appropriate Medical Board. 2. If the appropriate Medical Board decides, on the basis of the opinion of the treating body, that the injured person is in need of a companion, the Organization shall bear the expenses of transportation and lodging of the companion throughout the duration determined by the Board, notwithstanding that the injured person may spend his period of temporary disability within his country of residence so long as the Board has decided the necessity therefore.

3. In exception of the provisions of paragraph (2), the expenses of transportation and lodging of the companion throughout the period spent by the injured person at the treatment body, shall not be payable unless the Medical Board deems that the companion's stay is necessary. 4. If the condition of the injured person necessitates his treatment outside his country of residence, he shall be entitled to reimbursement of expenses of lodging for himself and his companion if he is forced to stay outside the hospital or treating center and is established to have paid the expenses of such lodging. 5. With due regard to the provisions of paragraphs (2) and (3), as a proviso for payment of the transportation and lodging expenses in all cases, the transportation and lodging shall have been based on the approval of the appropriate authority designated by the Organization. 6. The Governor shall, by a decision to be made by him, determine the transportation and lodging expenses of the injured person and companion and the rules and procedures for payment thereof. ARTICLE (7) 1. The injured person may, at the discretion of the Governor, be moved from the treatment body to his home country if it is discovered that his physical condition is hopeless and, a permanent total disability is existing and there is a need for other's help in his movement and performance of his everyday life activities, in which case the employer shall complete the formalities for moving him and pay the expenses thereof. The Organization shall refund the cost of the economy class air-ticket of each the injured person and his companion in addition to the costs of such medical facilities as the Primary Medical Board deems necessary for the injured person. 2. For the purposes of application of the provisions of Article (37) of the Law, the Organization shall bear all the expenses for the transport of the body of the insured person who dies as a result of an employment injury or the deceased recipient of a permanent disability benefit, to his home country along with the expenses of washing and embalming the corpse, the cost of the shroud, the expenses of its transportation to the airport, the expenses of translation and legalization of the required documents, the expenses of notifying the family of the deceased, and such other expenses as the Governor may deem appropriate to be borne by the Organization for the safe transportation of the body (1).

SECTION III
DAILY ALLOWANCE ARTICLE (8) 1. If, as a result of an employment injury, the injured person is temporarily disabled, he shall be entitled to a daily allowance for each day of work disability including holidays and weekly rest days during the disability period with due regard to the provisions of Article (1) of these Regulations. The Organization shall pay such allowance in accordance with the provisions of Article (30) of the Law upon receipt by the Office of the original Form 10 or 11/Occupational Hazards from the medical center or the alternative medical reports, as the case may be. Payment shall be effected by the Organization's Office or other agencies by such means as may be determined by the Governor. 2. The temporary work disability shall be established by a medical report to be issued by such medical authority as may be prescribed by the Organization, and the injured person for whom the allowance is determined shall present himself for medical examination whenever he is requested to do so by the appropriate authority of the Organization. 3. The daily allowance shall fall due on and from the day immediately following the date of occurrence of the injury or from the date of work disability if it is later, without prejudice to the provisions of Article (1) of these Regulations. 4. The daily allowance is payable to the injured insured person. However, if it is established that the employer continued to pay him the wage despite of his entitlement to the daily allowance and the injured person admits the same, the daily allowance due for the period during which the wage continued to be paid shall be paid to the employer. 5. The daily allowance shall be computed by dividing the monthly contributory wage provided for in paragraph (1) of Article (11) of these Regulations by the number of days of the month for or during which the allowance is due. ARTICLE (9) The injured person may not combine the daily allowance with the wage. If it is established that he has worked for a wage, whatsoever, during the period for which he is entitled to receive an allowance, he shall not be paid this allowance for this period, and the Organization shall have the right to recover what he has unlawfully received in such case, without prejudice to the provisions of paragraph (4) of Article (8). ARTICLE (10)

1. The daily allowance in case of an injured apprentice shall be set on the basis of the wage on which contributions are due for such apprentice under the provisions of the Registration and Contribution Regulations. 2. If the injured person was working for more than one employer when he sustained the injury, his daily allowance shall be computed on the basis of his combined wages for which contributions to the Occupational Hazards Branch have been paid. ARTICLE (11) 1. The amount of the daily allowance shall be assessed at the rate of 100% of the injured person's daily contributory wage for the month preceding the month in which the injury was sustained or for the month in which he entered into employment if the injury was sustained in such month, and no increase in wage granted after the injury was sustained shall be regarded for any reason whatsoever. 2. The amount of daily allowance referred to in the preceding paragraph shall be reduced to 75% while the injured person is under treatment at the Organization's expense at a treatment body or at any other place. ARTICLE (12) With due regard to the provisions of paragraph (2) of Article (11), the injured person shall be entitled to the daily allowance throughout the period he is not at work because of the installation, maintenance or replacement of the artificial limb or any other reason, subject to an approval by the medical authority designated by the Organization. ARTICLE (13) In case his injury deteriorates or becomes complicated and this results in his temporary work disability, the injured person shall be entitled to the daily allowance computed on the following basis: 1. If, at the time of deterioration or complication, the injured person is engaged in an employment insurable under the Occupational Hazards Branch with the previous or a subsequent employer, the daily allowance shall be computed on the basis of his contributory wage for the month preceding the occurrence of the said deterioration or complication. However, if it has occurred in the month of his entry in the latest employment, the daily allowance shall be computed on the basis of the wage for such month. 2. If the injured person is not engaged in an employment at the time of occurrence of the deterioration or complication or is engaged in an employment uncovered under the Occupational Hazards Branch, the daily allowance shall be computed on the basis of the same wage taken as a basis for the computation of the allowance payable for the original injury.

ARTICLE (14) 1. If the recipient of a permanent partial disability benefit sustains another employment injury that renders him temporarily incapacitated for work and entitled to a daily allowance, he shall have the right to combine both the daily allowance and the benefit due for the previous injury, with due regard to the provisions of the next paragraph. 2. The deterioration or complication shall be deemed as original injury, if it causes the recipient of the benefit to return to the treatment body, in which case the payment of the benefit due for the original injury shall be discontinued with effect from the beginning of the month immediately following his admission to the medical center, and payment of the daily allowance shall be effected on that date. Payment of benefit shall be resumed to him with effect from the day next to the day on which the entitlement to the daily allowance is terminated. 3. If an injured person entitling to a daily allowance receives in addition to his wage a pension for his contribution to the Annuities Branch pursuant to the provisions of paragraph 4(a) of Article (38) of the Law, he shall continue to receive the part of his pension he used to receive plus the daily allowance due to him. ARTICLE (15) 1. In the application of the provisions of paragraph (4) of Article (30) of the Law, the decision issued by the office director for suspension of payment of the daily allowance shall be based on a medical report by the treatment body or the Organization's doctor. 2. If the injured person resumes his abidance by the medical instructions, payment of his daily allowance shall be resumed by a decision to be made by the office director on the basis of a medical report by the authorities referred to in paragraph (1), above, without prejudice to the provisions of Article (38) of these Regulations as to the amounts already suspended. ARTICLE (16) 1. Entitlement to the daily allowance shall be terminated in the following cases : a. If the injured person regains his capacity for work and is completely cured of his injury. This shall be determined by a decision of the treatment body or the appropriate Medical Board. b. If the Primary Medical Board decides that his treatment is completed after his discharge from the hospital and his condition is stabilised with an inherent permanent disability, be it total or partial. c. If the injured person dies.

2. Entitlement to daily allowance shall not expire with the termination or suspension of employment relationship for any reason during the disability period .

SECTION IV
MONTHLY BENEFITS AND LUMPSUM COMPENSATIONS ARTICLE (17) 1. For the purposes of application of the provisions of paragraph (4) of Article (31) of the Law, the average monthly wage of the injured person on which the assessment of benefit is based shall be one third of the total contributory wages paid by the respective employer during the three months preceding the month in which the injury was sustained. If his contribution period or periods recorded with the said employer is or are less than that, the average monthly wage for the recorded period shall apply. 2. In case the disability percentages are combined for repeatedly sustained injuries and the injured person has accordingly been entitled to a monthly benefit or lumpsum compensation in accordance with the provisions of paragraph (2) or (3) of Article (33) of the Law, as applicable, the monthly benefit or lumpsum compensation due shall be computed on the basis of the average contributory wage for the three months preceding the month in which the last injury is sustained. In case such average is found to be lower than that taken as a basis for the computation of the first compensation, the new benefit or compensation shall be computed on the basis of the higher average wage. 3. For the purposes of application of the provisions of paragraph (2) of Article (33) of the Law, the lumpsum compensation already paid to the injured person for his first injury shall be recovered by deduction from the monthly benefit he is entitled to for the total disability percentages pertaining to the two injuries. Such deduction shall be made by installments over a number of months equivalent to that on which basis the lumpsum compensation has been computed after deducting half the accumulated benefit amount which has not been paid to him yet. ARTICLE (18) 1. If the injury is deteriorated or becomes complicated, and the injured person has consequently become eligible for a disability benefit, such benefit shall be computed as follows: a. Where the deterioration or complication has occurred while the contributor is in employment insurable under the Occupational Hazards Branch, the benefit shall be computed on the basis of the average contributory wage for the three months preceding the original injury or the deterioration or complication, whichever average is greater. b. Where the deterioration or complication has occurred after the termination of the employment relation or while the insured person is in another employment that is not insurable under the Occupational Hazards Branch, the benefit shall be computed on the basis of the average wage for the three months preceding the original injury.

If the period recorded for either one of the two cases mentioned in the above two paragraphs is less than three months, the average monthly contributory wage for the recorded period shall apply. 2. If the deterioration or complication is suffered by an injured person who has already received a lumpsum compensation and it has resulted in an increase in the percentage of the disability which disability still remains under 50%, the lumpsum compensation due to him shall be re-computed on the basis of the average wage provided for in the preceding paragraph (1), and the previously paid compensation shall be deducted therefrom. ARTICLE (19) 1. The monthly benefit shall become due from the date on which payment of daily allowance is stopped and permanent disability of the injured person is established. In case the allowance is not due, the benefit shall become payable on and from the first day of the month immediately following the date on which the injured person's condition is finally stabilized with a permanent disability established to be afflicted with by the injured person. Payment shall be made in advance with effect from either of the said two dates, as applicable. 2. The case shall be established to have been stabilized with a resulted in permanent disability by a decision of the Primary Medical Board after the completion of the treatment and stabilization of the case, with due regard to the provisions of paragraph (3) of Article (7) of the Medical Board Regulations. ARTICLE (20) 1. The permanent disability benefit shall be raised by 50% of the benefit amount as assistance allowance if the injured is in need of the constant assistance of others in the performance of his everyday life activities, provided that the amount of such allowance shall not exceed SR 3,500 (three thousand five hundred Saudi Riyals) per month. The injured person's need and continuity of need of such assistance shall be established by the appropriate Medical Board. 2. The said assistance allowance shall become payable on and from the first day on which the disability benefit becomes due, unless the entitlement to the allowance is decided at a later date, in which case it becomes payable on and from the first day of the month following that in which the Medical Board decides the entitlement thereto. 3. Payment of the allowance referred to in the preceding paragraph shall be stopped in any of the following two cases: a. If the payment of the disability benefit is stopped, in which case stoppage of payment of the said allowance shall take effect on and from the date on which the disability benefit is stopped to be paid.

b. If the Medical Board decides that the injured person's need of the constant assistance of others no longer applies, in which case the stoppage of payment of the said allowance shall commence from the beginning of the month immediately following the month in which the Medical Board decides that the reason for entitlement thereto no more exists. 4. If the Organization objects to the allocation of the allowance, its payment shall be continued until a decision by the Appeal Medical Board is made and notified to the appropriate office. The sums already paid shall not be recoverable if the Board decides to cancel the allowance. 5. If the recipient of the benefit appeals against the decision of the Primary Medical Board which rejects or suspends payment of the allowance and the Appeal Medical Board decides that the allowance is due or continues to be payable, the allowance shall be paid retroactively from the date on which it becomes already due, if not already paid. 6. The assistance allowance shall become final if the need of the assistance of others continues to exist until the completion of ten years from the date of entitlement to benefit. ARTICLE (21) In the application of the provisions of paragraph (2) of Article (34) of the Law, if as a result of the medical re-examination of a recipient of a permanent disability benefit, the disability percentage is amended, due regard shall be given to the following : 1. If the medical re-examination results in an amendment of the disability percentage and the injured person remains entitled to monthly benefit, the benefit amount shall be revised according to the new percentage of disability with effect from the first day of the month immediately following the month in which the Medical Board's decision amending the disability percentage is issued. However, if the amendment of the percentage of disability renders the amount of benefit to be reduced, and the decision issued by the Medical Board to this effect is appealed against, the decision shall only apply after it becomes final, and the benefit shall consequently be reduced with effect from the beginning of the month immediately following the issuance of the relevant decision of the Appeal Medical Board, with due regard to the provisions of paragraph (1) of Article (24) of these Regulations. 2. If as a result of the medical re-examination, the benefit percentage becomes less than 50%, payment of the monthly benefit shall be stopped and a lumpsum compensation shall be determined for him according to the new percentage of the disability, with due regard to the provisions of Articles (24) and (25)of these Regulations . 3. The benefit or lumpsum compensation amended as a result of amendment of the disability percentage, shall be computed on the basis of the average

monthly wage taken as a basis for the computation of the benefit prior to amending the disability percentage. 4. If, as a result of the medical re-examination, the injured person is established to have recovered, payment of the benefit shall be stopped with effect from the first day of the month immediately following the issue of the Medical Board's decision, without prejudice to the provisions of paragraph (1) of Article (24) of these Regulations. ARTICLE (22) 1. To continue payment of the monthly benefit due to the injured person or to any of his family members because of loss of his earning capacity, the beneficiary shall subject himself to the periodical examinations in such times as may be determined by the appropriate Medical Board or concerned doctor. 2. For the purposes of application of the provisions of paragraph (2) of Article (55) of the Law, the decision made by the director of the appropriate office for the suspension of payment of benefit to the beneficiary who refuses to abide by the treatment instructions or to submit to the periodical examination in the prescribed times, shall be based on a medical report from the treatment body. If it is established, by virtue of a similar medical report, that the beneficiary resumes his abidance by the medical instructions warranted for his treatment and submission to the periodical examination, payment of benefit shall be resumed to him without prejudice to the provisions of Article (38) of these Regulations. ARTICLE (23) The benefits of the family members of the insured person shall become due in accordance with the provisions of Article (35) of the Law in the following cases : a. If the insured person dies as a result of an employment injury. b. If a recipient of a permanent total or partial disability benefit dies. c. If the conditions entitling the injured person to a permanent total or partial disability benefit were satisfied before he died regardless of the reasons for his death. d. If the injured person dies before his condition is stabilized as a result of the injury. e. If the injured person dies as a result of the deterioration or complication of the employment injury. ARTICLE (24)

1. In case of an appeal against the assessment of a disability at the rate of 50% or more, the permanent disability benefit shall be paid in accordance with a decision by the Primary Medical Board pending a decision to be made by the Appeal Medical Board and communicated to the appropriate office. If the Appeal Medical Board decides to raise the amount of the benefit, the raise shall be paid retroactively with effect from the date on which the benefit becomes due, but if it decides to reduce the amount of benefit, the reduction shall take effect from the beginning of the month immediately following the date of issue of the Board's decision with no retroactive effect. 2. The lumpsum compensation entitled under the provisions of Article (32) of the Law and paragraph (2) of Article (21) of these Regulations shall be paid only after the decision of the Primary Medical Board becomes final after the time limit for submission of an appeal lapses without appealing against such decision. The receipt by the beneficiary of the lumpsum compensation shall terminate his right to appeal. However, if any appeal against the said decision is presented within the prescribed time limit, the compensation shall not be paid until the decision of the Appeal Medical Board is issued. ARTICLE (25) The entitlement of the insured person or family members to the benefit shall be terminated on any of the following dates, as applicable: 1. At the end of the last day of the month in which the appropriate Medical Board decides the termination of the disability state, with due regard to the provisions of paragraph (1) of Article (24) of these Regulations. 2. At the end of the last day of the month in which the beneficiary dies. 3. At the end of the last day of the month in which any of the other requirements of termination of entitlement to benefit arises. ARTICLE (26) In case of failure to follow the procedures for reporting the injury in accordance with the provisions of Article (1) of these Regulations or to complete the treatment formalities with the knowledge and under the supervision of the Organization, the insured person, who demands to have sustained an employment injury, may not claim payment of allowance, monthly benefit or compensation for such injury unless he submits along with his claim such reports and documents as may be acceptable to the Organization and evidencing that the injury meets the requirements provided for in Article (27) of the Law, without prejudice to the provisions of Article (57) of the law

SECTION V
PROVISIONS FOR APPEAL ARTICLE (27) For the purposes of application of the provisions of these Regulations, the provisions for the procedures for submission and consideration of appeals instituted in the Registration and Contribution Regulations shall be applied to the appeals filed against the decisions issued by the Organization's agencies, with due regard to the provisions of Articles (28) and (29) of these Regulations. ARTICLE (28) Appeals as to whether or not a benefit or compensation is due and the decision thereon pertinent to medical matters shall be referred to the Primary Medical Board. ARTICLE (29) 1. For the purposes of application of the provisions of paragraph (2) of Article (53) of the Law, appeals against the decisions of the Primary Medical Board shall be submitted to the Appeal Medical Board in accordance with the provisions of the Medical Board Regulations. 2. If the Organization appeals against a decision by the Primary Medical Board, the insured person shall be sent a copy of the appeal within fifteen days from the date of submission of the appeal.

SECTION VI
GENERAL PROVISIONS ARTICLE (30) For the purposes of application of the provisions of these Regulations "the injured" shall mean the insured person who sustains an employment injury (employment accident or occupational disease) in accordance with the provisions of Article (27) of the Law. ARTICLE (31) 1. The Occupational Hazards Branch shall cover the employment injuries provided for in Article (27) of the Law and occurring within the Kingdom of Saudi Arabia. 2. The following shall be excepted from the application of the provisions of the preceding paragraph : a. The crews of the Saudi aircrafts: They shall continue to be insured under the Occupational Hazards Branch while on board or on their way from the airport to their place of residence or vice versa in the countries to which such aircrafts fly outside the Kingdom. If any of the crew members is injured during that time, the employer shall arrange for his medical treatment in the country in which the injury is sustained, if necessary. The Organization shall refund him the treatment expenses in accordance with the prices agreed with the treatment bodies contracted with the Organization in the Kingdom and within the limits determined by the Medical Board as to the requirements and duration of treatment. Should the injured person continue to be in need of the treatment after his return to the Kingdom, the employer shall move him to the medical center previously designated by the Organization for the treatment of his workers. The Organization shall pay the treatment expenses and daily allowances due as provided earlier. b. The crews of the Saudi land and sea means of transportation : They shall continue to be insured under the Occupational Hazards Branch during the international trips outside the Kingdom in accordance with such controls as may be set by the Governor. ARTICLE (32) For the purposes of application of the provisions of paragraph (2) of Article (28) of the Law, the injury shall be deemed to be an employment injury only if it is sustained by a worker for whom a registration for insurance under the Occupational Hazards Branch has been made and contributions have actually been paid by the employer prior to sustaining the injury by the worker. As an exception to this provision, the injury shall be deemed to be an employment injury, if it has been sustained during the month in which the worker has

entered into employment or in the next month, provided that the employer shall pay the contributions due. ARTICLE (33) 1. The disease shall be considered an occupational disease if it is included in the Schedule of Occupational Diseases and the occupation causing such disease to the insured person is among the causative occupations listed in the said Schedule. Other cases instituting evidence that the disease has been caused by reason of work shall be presented to the Governor. 2. No benefit shall be payable for the occupational disease if it is established by the Medical Board that such disease in its state has been contracted by the injured person prior to the commencement of his contribution to the Occupational Hazards Branch. ARTICLE (34) The Occupational Hazards Branch shall apply to the employment injuries sustained by the insured person throughout his period of contribution including the injuries sustained by the insured person on the last day of his period of contribution specified in the form of employment termination. ARTICLE (35) Unless otherwise is provided for in these Regulations, the corresponding provisions of the Annuities Branch Benefit Regulations and the decisions amending thereto shall apply in respect of entitlement to daily allowances, transportation and lodging allowances, monthly benefits and lumpsum compensations payable under the Occupational Hazards Branch. ARTICLE (36) 1. The Governor shall, by decision to be made by him, on the recommendation of a medical board, determine the maximum period during which such deterioration or complication shall have taken place in order to be covered by the provisions of the Occupational Hazards Branch. 2. The Governor shall, by decision to be made by him on the recommendation of a medical board, the maximum periods during which the symptoms of the disease shall have appeared in order to be considered as an occupational disease. This shall apply to the cases where the symptoms of the disease have appeared on the insured person after he is no more engaged in an employment or occupation included in the Schedule of Occupational Diseases. ARTICLE (37) The Governor may, for reasons of his own judgment, forego the recovery of the treatment expenses and injury allowances paid by the Organization, if it is established, after payment thereof, that the case is not an employment injury.

ARTICLE (38) In the application of the provisions of Article (57) of the Law, due regard shall be given to the following: 1. Claims for daily injury allowance, transportation and lodging allowances, and deceased's family grant shall not be accepted after the expiry of one year from the date of entitlement thereto, and claims for monthly benefits and lumpsum compensations due for the injury shall not be accepted after the expiry of five years from the date of entitlement thereto, unless there is an excuse acceptable to the Organization in respect of any of such benefits. 2. If the appropriate office is duly notified of the injury, or the claim for payment or the like is submitted within the time-limit provided for in the preceding paragraph or the treatment of the injured person is effected by or under the supervision or with the knowledge of the Organization, the right for any of the benefits referred to in the preceding paragraph shall remain valid. 3. For the purposes of the application of the provisions of the two preceding paragraphs, the details of the provisions set out in Article (40) of the Annuities Branch Benefis Regulations pertaining to the application of the provisions of Article (57) of the Law shall be followed.

SECTION VII TRANSITIONAL PROVISIONS
ARTICLE (39) 1. For the purposes of application of the provisions of Article (36) of the Law, the receipt by a non-Saudi insured person sustaining an employment injury, or by his family members in the event of his death, of the lumpsum compensation determined in lieu of the benefit, shall terminate the relation between him/them and the Organization. 2. The non-Saudi insured persons who have sustained employment injuries or, in the event of their death, their family members who have been eligible for monthly benefits before the date of putting this Law into effect and have elected to continue receiving the benefits by virtue of the decisions already issued by the Board of Directors, as well as those residing outside the Kingdom and have elected to continue receiving the benefits by virtue of the said decisions, may be given by the Organization the option either to continue receiving their due benefits in accordance with the prescribed statutory provisions or to receive, in lieu thereof, a lumpsum compensation assessed in accordance with the provisions of Article (36) of the Law. All this shall be done in conformity with such rules as may be adopted by the Board of Directors. ARTICLE (40) 1. For the purposes of application of the provisions of Article (67) of the Law, due regard shall be given to the provisions of the following paragraphs in respect of the Saudi insured persons and their family members: a. The Saudi insured person who, prior to the date of putting the Law into effect, was entitled to monthly benefit for permanent total disability under the old Law and his benefit continued to be lawfully payable until the said date, the benefit shall be raised to SR 1,500 (one thousand five hundred Saudi Riyals) if it was less than the said amount, with due regard to the relevant provisions followed in respect of the pensions raised to the minimum by virtue of paragraph (1) of Article (42) of the Annuities Branch Benefits Regulations. b. If the monthly benefit is due for a permanent partial disability, the benefit shall be re-computed on the basis of being a percentage of the total disability benefit prescribed under the preceding paragraph, if this renders the benefit to be increased. In the event of death of the one who is entitled to the said benefit after the new Law is put into effect, his entitlement shall be distributed between his family members in accordance with the provisions of the Law. c. As regards to the benefits entitled to the family members under the old Law and are still entitled to them on the date the new Law is put into effect, the shares of the eligible

family members shall be re-determined on the basis of raising their breadwinner's entitlement to SR 1,500 (one thousand five hundred Saudi Riyals) if it is less than such amount. If, thereafter, an individual share is found to be less than SR 300 (three hundred Saudi Riyals), it shall be raised to this much, 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) or the average wage taken as a basis for the computation of the benefit of the breadwinner, whichever is greater. 2. The non-Saudi insured persons or any of their family members, as applicable, who have licensed permit for permanent residence in the Kingdom, and who, prior to putting these Regulations into effect, were receiving monthly benefit under the old Law and remained payable until the date of putting the new Law into effect, shall be subject to the provisions of the preceding paragraphs. The appropriate office shall regularly verify the fulfillment of the permanent residence condition. 3. The provisions of the preceding paragraphs shall apply on and from the beginning of the month immediately following the date on which the new Law is put into effect. 4. The daily allowance payable to the Saudi or non-Saudi insured person, who sustained employment injury under the old Law, shall be raised to the amount provided for in the new Law for the disability periods following the date of putting it into effect. 5. The recipient of the monthly benefit for permanent total disability under the old Law who subjects himself to regular medical examinations under the new Law, and as a result of reexamination, his disability degree is reduced or raised, shall continue to be treated according to the provisions of the old Law as to the determination of the kind and amount of the benefit payable in the form of monthly benefit or lumpsum compensation, as appropriate, subject to the new degree of disability.

MEDICAL BOARD REGULATIONS
SECTION I FORMATION OF MEDICAL BOARDS AND THEIR MEETING TIMES AND PLACES ARTICLE (1) 1. The Primary Medical Board referred to in paragraph (1) of Article (53) of the Law shall be formed of at least two physicians of whom one shall represent the Organization, if possible. One Board shall be set up at each Region or District Office of the Organization. The Governor of the Organization may merge the jurisdiction of two or more boards in one board subject to the work volume and requirements. 2. The Appeal Medical Board referred to in paragraph (2) of Article (53) of the Law shall be set up at the Head Office of the Organization and shall be formed of at least three physicians of whom one shall represent the Organization provided that he shall have not already recommended the Organization's appeal against the decision of the Primary Medical Board before it is submitted to the Appeal Medical Board. 3. Without prejudice to the provisions of the two preceding paragraphs, the Governor shall select the members of the Primary and Appeal Medical Boards from among the physicians of the Organization or Ministry of Health or other qualified medical doctors either by deputation or contract, provided that one of such Board members shall be specialized in occupational medicine, if possible. If the insured person appeals against the decision of the Primary Medical Board, he shall bear the transportation and residence expenses for himself and his companion (if any) throughout the entire period of his appeal before the Appeal Medical Board. In case the appeal is accepted, the Organization shall bear the said expenses in accordance with the approved rules. ARTICLE (2) 1. The Appeal Medical Board shall meet at the Head Office of the Organization, and may, if necessary, meet in such other place as may be approved by the Governor. 2. The Primary Medical Board shall meet at the appropriate office and may, if necessary, meet in such other place as may be approved by the concerned Director. 3. The Primary Medical Board shall meet at least once a month so long as cases are available to be presented thereto.

4. The concerned Director shall fix the times of the Board meetings by coordination with the physicians who are Board members. ARTICLE (3) 1. If a member of the Appeal Medical Board fails to attend the Board meeting for any reason, and his absence has caused the number of the Board members to be less than three physicians, the Governor shall proxy another physician to replace him during his absence, provided that he shall not be from among members of the Board which has issued the decision appealed against. 2. If a member of the Primary Medical Board fails to attend the Board meeting for any reason, and his absence caused the number of the Board members to be less than two physicians, the concerned Director shall proxy another physician to replace him during his absence.

SECTION II
MEDICAL BOARD WORK RULES AND PROCEDURES

ARTICLE (4) The following procedures shall be followed upon receiving a request for establishment of an occupational or a non-occupational disability state of an insured person : 1. The insured person’s case shall be presented to the Office physician who may medically examine the insured person or refer him to the appropriate medical body for undergoing the necessary medical examinations before being presented to the Board. The insured person shall submit his medical reports to the said Office physician. 2. Where all the medical reports and examinations deemed to be necessary by the Office physician are completed, the Secretary to the Medical Board shall refer the insured person to the Board on the date fixed by the Office Director for the session and shall notify the insured person of the fixed time of the session. 3. In exception of the provisions of the preceding two paragraphs, there shall be no consideration of the employment injury cases for which five or more years have elapsed without submission of an application and receipt of an injury notification, unless the Governor's approval of the tolerance of the delay is issued. ARTICLE (5) 1. The Medical Board itself shall examine the insured person or beneficiary or delegate one of the Board members or the one the Board authorizes to do so and submit thereto a report, if the Board or Office physician is of the opinion that the physical condition of the insured person or beneficiary does not enable him to appear before the Board. 2. For the purposes of determining the jurisdiction of the Primary Medical Board, if the insured person or beneficiary is present in a place falling within the jurisdiction of another Medical Board, his case may be examined by the Medical Board operating in the place where he is present. 3. In exception of the provisions of paragraph (1), the Medical Board may consider the medical reports and laboratory tests as sufficient for the purposes of establishment or continuity of the disability state in the following cases: a. If the case is appealed against to the Appeal Medical Board, the insured person has left the Kingdom and the Board is satisfied with the adequacy of the report submitted in respect of this case. b. In case the medical reports required by the Medical Boards for the establishment of the state of disability are submitted after the insured person’s departure from the Kingdom as supplementary to previous medical examination by the Medical Board.

c. If the insured person, who is afflicted with a non-occupational disability, is only entitled to a lumpsum compensation. d. In case of submission of the medical reports required by the Medical Boards for periodical re-examination of the insured person or beneficiary. e. Where the case of any family member is considered for the establishment of his earning incapacity. f. Such other cases as the Governor may permit the Board to be satisfied with the medical reports without the requirement of the insured person to appear before the Board. 4. In all cases referred to in sub-paragraphs (a), (b), (c), (d) and (e) of paragraph (3), the Governor may require to have the insured person or beneficiary subjected to medical examination under the supervision of the Organization, if he deems such action to be necessary in any of the cases. 5. The Governor shall determine the conditions that shall be satisfied by the medical reports and the tests that shall be made outside the Kingdom in order to be considered as reliable. ARTICLE (6) 1. The appropriate Medical Board may request the presence of a competent Organization officer to be selected by the concerned Director to explain the provisions of the Law and implementing regulations relevant to the case being presented to the Board. 2. The Medical Board may call for the advice of a specialized medical consultant, and the Secretary to the Board shall record the advice of such consultant or attach his relevant report, if any. If the Board is not of the opinion to adopt the consultant's advice, it should mention in detail the reasons therefore, and the secretary shall record such reasons. 3. The Board may, as necessary, consult the representative of the Minister of Labour and Social Affairs on the available job opportunities that may be suitable to the condition of the insured person. The said representative shall be invited by a decision from the concerned Director. The representative of the Ministry of Labour shall be designated by virtue of such regulating rules as may be issued by coordination between the Organization and the Ministry. 4. The Medical Board may request making any laboratory tests or any other tests if the insured person’s condition necessitates such tests in the opinion of the Board. 5. a. The Organization shall bear the costs of the medical reports and examinations made within the Kingdom so long as they are made upon the request of the Medical Board. b. The Organization shall not bear the costs of the medical reports and examinations made outside the Kingdom except in such cases as may be approved by the Governor. ARTICLE (7)

1. without prejudice to the provisions of paragraph (2) of Article (39) of the Law, the insured person’s non-occupational disability shall be established if the conditions for establishment of disability in its insurance meaning provided for in paragraph (6) of the said Article are met. The Medical Board shall determine the starting date of disability to take effect on and from the date of satisfaction of all statutory and medical conditions such as the termination of the insurable employment of the insured person or the reduction of his wage to less than one third. 2. The Primary Medical Board shall not determine the state of permanent disability of the injured person as long as he is hospitalized for treatment. It shall determine the state of permanent disability, if any, after the required treatment is completed and the condition is stabilized and he is discharged from the treating center. 3. In exception of the provisions of paragraph(2), if the treatment center or the office physician discovers that the physical condition of the nonSaudi injured person does not permit him to resume his employment and that he must leave the hospital to his home country directly, the Medical Board may examine him while he is in the treating center. If the Board is satisfied that his condition is stabilized, it may issue its decision before he is discharged from the treating medical center, in which case, the Office shall coordinate with the employer and arrange for his travel to his home country, so that his cash benefit will be paid to him in due course prior to his departure. His receipt of such benefit shall be considered a final settlement of all his entitlements due from the Organization. The Governor shall set out the required arrangements and controls to ensure that the Organization does not pay any medical expenses or additional allowances beyond the time it has fixed for the travel of the injured person. ARTICLE (8) The Medical Board may issue its decision on the establishment of the state of non-occupational disability even after the insured person attains sixty years of age in the following two cases: 1. If the case had been presented to the Board before the insured person attained age sixty and the procedures had taken some time until he reached such age. 2. If the case had been presented to the Board for the first time on the date the insured person attained age sixty or thereafter and the Board had been certain that the disability state was established before the insured person reached such age. ARTICLE (9) 1. If the symptoms of the occupational disease appeared after the termination of the insurable employment, the case shall be presented to the Medical Board to determine the relation of the disease with the occupation he was exercising before he left employment, without prejudice to the provisions of the Schedule of the Occupational Diseases. 2. For the purposes of considering a disease an occupational disease, the Medical Board shall take into account that the occupation which caused such disease to the insured person was one of the causative occupations

shown opposite to the respective diseases in the Schedule of the Occupational Diseases.

SECTION III

MEDICAL BOARD'S DECISIONS AND APPEALS AGAINST SUCH DECISIONS

ARTICLE (10) 1. The Medical Board shall adopt its decisions by majority voting if its members are three or over and by unanimous voting if its members are two only. 2. The Governor shall call another physician to join the Medical Board membership to review the case if the Board fails to issue the relevant decision by virtue of the provisions of paragraph(1),above. 3. The decision of the Board shall, in all cases, be reason-based. However, if no reasons are instituted in the decision, the case shall be presented again to the same Board to issue its final reason-based decision on such case. ARTICLE (11) 1. The insured person may appeal against the decision issued in respect of his case by the Primary Medical Board, provided that he shall submit his appeal to the Appeal Medical Board within twenty one working days at the most from the date he is notified of the Board's decision. The Governor may forego the insured person’s delay in submitting the appeal, if such delay is due to justifiable reasons. 2. The Organization may appeal against the decisions issued by the Primary Medical Boards, in which case it shall submit its appeal to the Appeal Medical Board within twenty one working days at the most from the date of issue of the Board's decision. The Organization shall show the reasons for its appeal. 3. The Organization or the insured person may withdraw the appeal submitted to the Appeal Medical Board at any time before the Board issues its decision. 4. If the insured person appeals against the decision of the Primary Medical Board, he shall bear the transportation and residence expenses for himself and his companion (if any) throughout the entire period of his appeal before the Appeal Medical Board. In case the appeal is accepted, the Organization shall bear the said expenses in accordance with the approved rules. ARTICLE (12) 1. The Medical Board shall fix the times for the periodical medical examination of the recipient of pension or benefit regardless of the state of disability. However, the Board may extend the times of the periodical medical examination in cases where the Board believes that the case is, most likely, stabilized and neither recovery nor improvement is expected, provided that, in occupational disability cases, the injured person shall be re-examined at the beginning of the fifth year from the starting date of issuance by the Primary Medical Board of the first decision on the assessment of the state of disability. In cases of non-occupational disability, the final examination shall be made early before the insured person reaches age sixty. 2. The Medical Board may subject the recipient of pension or benefit to a medical examination after he reaches age sixty, in nonoccupational disability cases, and after the lapse of five years from the allocation of benefit in occupational disability cases, in order to verify whether the beneficiary is still in need of assistance of others in performing his everyday life activities. The allowance determined for this purpose shall become final by completion by the insured person of sixty five years of age for non-occupational disability and by the lapse of ten years from the date of allocation of benefit for occupational disability.

SECTION IV
REMUNERATIONS OF MEDICAL BOARD MEMBERS AND LODGING AND TRANSPORTATION EXPENSES

ARTICLE (13) The physicians who are members of the the GOSI physicians, or those who are consultation, shall, in consideration Boards, be paid fees to be determined accordance with such standards as may the Governor. ARTICLE (14) The Governor shall, by decision to be issued by him, determine the circumstances in which the insured person or any of the family members who is called to appear before the Medical Board, is entitled to reimbursement of the lodging and transportation expenses and prescribe the sum of such expenses. Medical Boards other than called by the Board for of their work with such by the Governor in be deemed appropriate by

GENERAL PROVISIONS
ARTICLE (15) For the purposes of application of the provisions of these Regulations, the concerned Director shall be taken to mean the Director General of Insurance Affairs with respect to the Appeal Medical Board and the appropriate office Director with respect to the Primary Medical Board. ARTICLE (16) The Governor shall secure the work environment and requirements to the Medical Board to perform its function. He shall also select a Secretary to the Board who shall be adequately aware of the provisions of the Law and Regulations thereof and of the work procedures. The Governor shall also prescribe the authorities and duties of the Secretary. ARTICLE (17) Each Medical Board shall keep the records required for entering the cases presented thereto showing, in particular, the date of referral, the date of review, and the relevant Board's decision, and the date of referral of such decision to the concerned Director. http://www.gosi.gov.sa

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