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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Saudi Arabia Raises Maximum Retirement Age to 65 Years


Thu 04 Jul 2024 | 12:30 AM
Taarek Refaat

Saudi Arabia approved  Tuesday a new social insurance system that sets the retirement age at between 58 and 65 years, after it was approved by the Saudi Council of Ministers, headed by Crown Prince Mohammed bin Salman.

The Civil Retirement System stipulates that “the employee shall inevitably be referred to retirement upon reaching 60 years of age, and his service may be extended by decision of the Council of Ministers only until he reaches the age of 65, with the exception of ministers and judges. In exceptional cases, the period of service may be extended after the age of 65 by royal decree.”

The new system aims to modernize and develop the retirement system in the Kingdom, taking into account the new work and contribution requirements and entitlements, in addition to providing broader options for early and late retirement according to the time periods specified in the new system.

GOSI stated that "the statutory retirement age for individuals affected by the amendments will range between 58 and 65 Gregorian years. This will involve a gradual increase, starting with an addition of four months to the current statutory retirement age, based on the contributor’s age at the date when the amendments come into effect. While for early retirement, the required contribution period will range from 25 to 30 Gregorian years, with a gradual increase starting with an addition of 12 months to the current required contribution period, depending on the contribution period at the date the amendments come into effect."