Social Security in Saudi Arabia is a guaranteed right for residents with permanent residency, provided they meet the necessary conditions.

In today’s article, we will discuss Social Security in Saudi Arabia, identify the eligible beneficiaries, and shed light on the newly developed system.

Social Security System in Saudi Arabia

The Social Security system in Saudi Arabia is a program offered by the Ministry of Human Resources and Social Development.

This system provides monthly financial support to eligible individuals. It’s important to note that Social Security funds are primarily sourced from Zakat contributions.

There are also other sources of Social Security funds, as outlined in Article 18 of the Social Security Law, which include:

• Zakat funds.

• Donations, gifts, and endowments in accordance with regulations.

• Allocations from the state treasury.

• Returns from investments of Social Security funds.

Article 6 of the Social Security Law determines the value of the Social Security pension and the maximum amount for family pensions.

According to the article, the annual pension for the first eligible person is SAR 9,400, with SAR 3,100 added for each additional member.

Additionally, the pension for a family of eight should not exceed SAR 31,000 per year, unless a decision from the Council of Ministers states otherwise.

The Developed Social Security System

There are some differences between the traditional Social Security system and the developed version, which introduced several advantages.

The developed system expanded the scope of eligible beneficiaries to include new categories such as:

• Foreign women married to Saudi nationals.

• Foreign widows with children from a Saudi husband.

• Children of a Saudi widow married to a non-Saudi.

• Individuals with disabilities, widows, and orphans who do not possess Saudi nationality documents but have mobility cards.

Who Is Eligible for Social Security in Saudi Arabia?

According to Article 3 of the Social Security Law, the eligible groups include:

• Orphans.

• Women without a provider.

• Families without a breadwinner.

• Elderly individuals of retirement age.

• People unable to work.

The Social Security system in Saudi Arabia assigns the ministry the responsibility to periodically monitor existing cases and identify new ones.

As per Article 16, the beneficiary or their representative must notify authorities of any changes in financial, social, or health status.

Employee Deductions

Some employees in Saudi Arabia are covered under the Social Security system, provided they meet certain eligibility requirements:

• Must be a Saudi citizen and reside in the Kingdom permanently.

• The employee’s salary should not be below the minimum pension amount of SAR 1,100 for the employee and SAR 550 for each family member.

• The employee must not own significant financial assets.

• Compliance with ministry requirements regarding beneficiary status.

• Must not reside in a government-operated shelter.

Social Security Contribution Rates for Employees

As for the Social Security contribution rates, they are set at a maximum of 5%.

These contributions are deducted by the employer from employees’ salaries as follows:

• 2% for work injury insurance.

• 1.5% for unemployment insurance.

• 1% for disability or death insurance.

• 0.57% for maternity insurance.

We now reach the conclusion, hoping this article provided useful insights into the Social Security system in Saudi Arabia.

We explored the key features of Social Security, introduced the developed system, and explained employee salary deductions.

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