•    The worker shall be a Saudi national.

•    The employer shall be covered under the social insurance law/scheme of the work-based state.

•    The worker's age shall be under 60 when the Law was initially applied. However, if the worker has ever been covered under the Social Insurance Scheme of the Kingdome of Saudi Arabia, he shall be treated as follows:

1.    If the worker is receiving a pension in return for his previous period of contribution, he may either be exempted from paying contributions for his new period of employment or resume his contribution to the scheme, provided that his age under 65.  If, However, he reached the said age on the date of his coverage, he not contribute to the scheme for his subsequent period of employment.

2.    If he is not receiving a pension, the Law shall be applied to him irrespective of his age on the date of his coverage.

The earnings subject to deduction of contributions shall be of the basic wage (which is the amount received by the worker in consideration of his work regardless of the method of payment or calculation of such wage) plus the housing allowance of which the contributing value is equivalent to a two-month basic salary. The contributory wage shall neither exceed SR 45,000, nor be less than SR 1,500 per month.

Commission, percentage of sales value, and percentage of profit shall be considered as basic wage, notwithstanding that they may be paid alone or in addition to a fixed wage.

The following should be taken into account:

1.    If the above-mentioned contributory wage neither exceeds the maximum contributory wage provided for by the social insurance law/scheme of the work-based state, or is less than the minimum contributory wage (SR 1,500), the worker shall pay his share and the employer's share of contribution to cover the difference in the two wages.

2.    The contributory wage shall only be modified at the beginning of the insurance year (January/Muharram).

3.    In every insurance year, the increase in the contributory wage of a 50-year worker shall not exceed 10% of the wage registered in the previous insurance year. Any increase over the said percentage shall not be subject to contribution deduction.

The contribution rate to the Annuities Branch shall be fixed at 18% of the contributory wage, of which 9% shall be paid by the employer and 9% shall be paid by the worker.

If the said contribution rate paid by the employer exceeds the contribution rate applied by social insurance law/scheme of the work-based state, the worker shall pay the contribution rate of the employer.

The worker's membership shall be discontinued or terminated upon the end of his work relation for any reason (e.g. resignation, dismissal, death or termination of employer's activity). The employer shall notify the social insurance service of the work-based state about such discontinuation or termination, using (the consolidated form of the Unified Law of Insurance Protection Extension for the Gulf Cooperation Council State Citizens)

In Case of Worker's Disability or DeathIn case of worker's disability or death, the employer shall notify the social insurance service of the work-based state, attaching the necessary medical reports that prove disability, or attaching the death certificate, as applicable, along with the membership termination Form (the consolidated form of the Unified Law of Insurance Protection Extension for the Gulf Cooperation Council State Citizens).

The penalties applied by the work-based state shall be imposed on the employer who commits the following acts:

1.    Fail to register or delay registering all or some of his Saudi employees, or fail to report the termination of their services.  

2.    Fail to pay contributions on the dates set by the Law.

3.    Pay contributions based on unreal wages.

Penalties amounts shall be deposited in the bank account of the General Organization for Social Insurance of the Kingdom of Saudi Arabia at the work-based state.