The General Organisation for Social Insurance has introduced key amendments to the Social Insurance Law, impacting contribution rates and the retirement age for Saudi nationals working in Saudi Arabia and other Gulf Cooperation Council member countries. Key updates include an increase from 9% to 11% over a four-year period (0.5% increase per year) for new enrollees as of July 3, 2024, with retirement age fixed at 65 or 55 if the employee has 30 years of contributions; and a gradual increase of the retirement age from 58 to 65 for current contributors under 50 years old. Employers should update their human resource and payroll systems to reflect the phased contribution rate increases and should notify impacted employees about this change.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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