? New Updates in the Saudi Social Insurance System
The General Organization for Social Insurance (GOSI) has announced new amendments to the Social Insurance Law aimed at enhancing financial sustainability and improving the benefits provided to contributors. These updates include a gradual increase in the contribution rate for the pensions branch, as well as the introduction of a new maternity compensation for working women.
Below are the key details of these amendments:
? First: Increase in Pension Contribution Rates
This increase applies to contributors who had not previously enrolled in the system before July 3, 2024.
The contribution rate for the pensions branch will be gradually increased by 0.5% annually, shared equally between the employee and the employer, while contribution rates for other branches remain unchanged.
? New Contribution Rate Details:
| Year | Employer Contribution (Pensions) | Employee Contribution (Pensions) | Total Employer Deduction | Total Employee Deduction | Increase Rate |
|---|---|---|---|---|---|
| July 3, 2024 | 9% | 9% | 11.75% | 9.75% | No increase |
| July 1, 2025 | 9.5% | 9.5% | 12.25% | 10.25% | 0.5% |
| July 1, 2026 | 10% | 10% | 12.75% | 10.75% | 0.5% |
| July 1, 2027 | 10.5% | 10.5% | 13.25% | 11.25% | 0.5% |
| July 1, 2028 | 11% | 11% | 13.75% | 11.75% | 0.5% |
? Second: Maternity Compensation
As part of the new amendments, GOSI has introduced a new benefit called “Maternity Compensation”, which is provided to working women who take time off due to childbirth — whether Saudi or non-Saudi — provided they are registered contributors.
? Eligibility and Payment Mechanism:
- Eligibility starts from the first month in which childbirth occurs.
- The maternity compensation equals the average recorded monthly wage over the last 3 months.
- The duration extends to 4 months if the baby is ill or has a disability.
- To qualify, the female worker must have completed 12 months of contributions (continuous or non-continuous) during the last 36 months prior to childbirth.
- The childbirth must occur while the worker is under an active subscription and at least 6 months after the start of pregnancy, regardless of whether the baby is born alive or not.
- It is not permitted to combine maternity compensation with a regular salary, but it can be combined with occupational hazard compensation.
- Social insurance contributions will continue during the compensation period, as is currently the case under the occupational hazard branch.
? Note:
Eligible participants can apply for maternity compensation easily through the GOSI electronic platform, uploading all required documents online without the need to visit a branch.