2000 News Story

New social insurance system issued

New regulations have been issued governing the social insurance system, and covering the administrative organization of the General Organization for Social Insurance (GOSI), including its headquarters and branches, board of directors, administration, and finances.

The regulations delineate all aspects of social insurance, including vocational risks and pension entitlements. They stipulate, for example, that vocational risk insurance is applicable to all workers indiscriminate of sex, age, or nationality; and that the rate of subscription is 2 percent of the salary of the subscriber to be paid by the owner of the business. Pension entitlement begins at the age of not less than sixty years. Subscription, voluntary for Saudi citizens in private business, is set at 18 percent of the salary, of which 9 percent is borne by the employer. Pension insurance, however, excludes civil service, armed forces and police personnel who enjoy special retirement pension systems; foreign personnel of international, political or military organizations; and workers involved in agricultural, marketing, pastoral, or maritime activities, including fishermen.