How Saudi Arabia's new social insurance law affects you
The law came into effect today…
Saudi Arabia first announced changes to its social insurance law this time last year. And if you’re wondering how Saudi Arabia’s new social insurance law affects you, we’re here to help.
The new laws mainly affect new civil employees joining either the public or private sectors who currently don’t have any prior contributions under the current Civil Pension Law or Social Insurance Law.
The newly changed law also states that there will be a gradual increase in retirement age, although there will be no change in the benefits for the current subscribers of GOSI. The organisation has also stated that the new retirement age for individuals affected by the amendments will range between 58 and 65 years.
The organisation stated that this law will contribute to expanding the scope of insurance coverage to include more categories and will achieve flexibility in job transfers between the public and private sectors without affecting subscribers’ insurance rights, by unifying insurance provisions under the umbrella of a single law.
Another aspect of how Saudi Arabia’s new social insurance law affects you is that the maternity benefit will also be implemented starting Tuesday, July 1. Under this benefit, the GOSI grants female subscribers, whether Saudi or non-Saudi, maternity compensation for three months upon giving birth, according to Saudi Gazette.
In other KSA news
The Saudi Central Bank (SAMA) has also just announced new Saudi credit card rules when it comes to the issuance, operations, and fees. Aimed at lowering costs for customers, the new regulations start with a requirement for credit card issuers to notify customers of any change in fees via SMS, with customers allowed to terminate their agreement within 14 days of receiving the notice. That’s not all, though. E-wallet top-ups via credit cards are now free of charge; fees are capped at three per cent of the transaction amount for withdrawals below SR2,500, and for withdrawals of SR2,500 or more, fees are limited to a maximum of SR75.
