KSA raises retirement age to 65 for new employees? Read here

The General Organisation for Social Insurance (GOSI) has clarified the details of the new social insurance law, which affects only new employees, effective from July 3, 2024.

The decree, approved by the Council of Ministers, states that the current Civil Pension and Social Insurance laws will still apply to existing employees, except for changes to the retirement age and the qualifying period for pension entitlement as specified in the decree.

The new social insurance law applies only to new workers in the public and private sectors who have no prior contributions to the current Civil Pension or Social Insurance laws. Current members with less than 20 years of service and who are under 50 Hijri years old (approximately 48.5 years according to the Gregorian calendar) on the effective date of the amendments will continue under the current laws.

Additionally, the authority explained that the statutory retirement age for affected individuals will be between 58 and 65 years. This will gradually increase, starting with an addition of four months to the current retirement age, based on the worker’s age when the amendments take effect.

For early retirement, the required service period will be between 25 and 30 years, with a gradual increase starting with an addition of 12 months to the current period, depending on the service period when the amendments take effect.

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The revised retirement age for new employees: