Social Insurance Law 1421H

Purpose and scope

• The Social Insurance Law of 1421H, covering an occupational hazards branch for work injuries and a pensions branch for non-occupational disability, old age and death (Article 1).
• A new Social Insurance Law was later issued, so its transitional provisions show what remains of this law for those insured before it.

Key rules, rights and obligations

• Contributions are calculated on the basic monthly wage, to which allowances set by the regulation may be added (Article 19).
• A work injury is any accident during or because of work, including on the way between home and work (Article 27).
• A member is entitled to a retirement pension at age sixty after stopping covered work, with at least one hundred and twenty months of contributions (Article 38); women have special terms at age fifty-five (Article 38 as amended).
• A member with non-occupational disability is entitled to a pension after a set contribution period (Article 39).

Violations, penalties and common problems

• Breaching the law or giving false information: a fine of up to ten thousand riyals; registering someone who does not work for the employer may be fined up to double the recorded contributions (Article 62 as amended).
• If a violation leads to benefits paid without right, the fine may equal those benefits, which must be repaid (Article 62 as amended).
• No fine may be imposed for a violation five years old or more (Article 62 as amended).

Procedures and key deadlines

• Fines are decided by the governor of the organisation, and may be challenged within thirty days of notification (Article 62 as amended).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.