Article 11 of the Saudi Civil Retirement Law
المادة 11 من نظام التقاعد المدني
The Article transfers the rights and obligations under the 1381 AH retirement law to this Law, and increases existing pensions by graduated percentages, up to a maximum of SAR 2,000.
Official text (Arabic)
This article has not been amended since the law was issued.
تنتقل الحقوق والالتزامات المترتبة على النظام الصادر بالمرسوم الملكي رقم (6) في 19 /2 /1381هـ إلى هذا النظام. كما تزاد المعاشات المستحقة بموجب أنظمة التقاعد المدني والقائمة عند نفاذ هذا النظام، وفقًا لما يأتي:
- بالنسبة لصاحب المعاش تزاد الـ(300) ريال الأولى من معاشه بنسبة (30%)، والـ(300) ريال الثانية بنسبة (20%)، والباقي بنسبة (10%).
- بالنسبة لمجموع الاستحقاقات على صاحب المعاش تزاد الـ(200) ريال الأولى بنسبة (70%)، والـ(200) ريال الثانية بنسبة (50%)، والباقي بنسبة (30%).
على أنه يجب أن لا يترتب على هذه الزيادة تجاوز المعاش أو مجموع الاستحقاق عن صاحب المعاش مبلغ ألفي ريال.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 11 explained in plain English
This is a transitional Article, and contains two provisions:
First: transfer of rights and obligations. The rights and obligations arising under the law issued by Royal Decree No. 6 of 19/2/1381 AH are transferred to this Law.
Second: increase of existing pensions. The pensions due under the civil retirement laws that exist when this Law comes into force are increased as follows:
- For the pensioner: the first SAR 300 of his pension is increased by 30%, the second SAR 300 by 20%, and the remainder by 10%.
- For the total entitlements in respect of the pensioner (that is, what is paid to those entitled through him): the first SAR 200 is increased by 70%, the second SAR 200 by 50%, and the remainder by 30%.
Maximum limit: The increase may not result in the pension, or the total entitlement in respect of the pensioner, exceeding SAR 2,000.
The increase is graduated: the percentage is higher on the first slice of the pension and then falls, which means smaller pensions benefit proportionally more. This provision concerns the pensions that exist when the Law comes into force, and the Article does not speak of pensions that arise afterwards. Article 10 complements this provision by stating that the Agency is liable for what fell due under the 1378 and 1381 AH laws.
Practical example
A retiree's pension was SAR 1,000 when the Law came into force. The first SAR 300 is increased by 30% (SAR 90), the second SAR 300 by 20% (SAR 60), and the remaining SAR 400 by 10% (SAR 40), so his pension becomes SAR 1,190, which is below the maximum of SAR 2,000.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 11 of the Saudi Civil Retirement Law
What are the percentages of increase for existing pensions when the Law came into force?
For the pensioner: 30% on the first SAR 300, 20% on the second SAR 300, and 10% on the remainder. For the total entitlements: 70% on the first SAR 200, 50% on the second SAR 200, and 30% on the remainder.
Is there a maximum limit on the increase?
Yes. The increase may not result in the pension, or the total entitlement in respect of the pensioner, exceeding SAR 2,000.
What happened to the rights under the 1381 AH retirement law?
The rights and obligations arising under it were transferred to this Law.
More articles on Persons Covered by the Civil Retirement Law
- Article 1
The Article defines the key terms of the Civil Retirement Law, such as employee, public body, retiree, pension, gratuity, pensioner and beneficiary.
يًقصد بالاصطلاحات الآتية - حيث وردت في النظام - المعاني المعرفة بها هنا:- الموظف : من تربطه بالدولة أو الهيئات العامة علاقة لائحية لها صفة الدوام، ويشمل هذا الل
- Article 2
The Article defines who is covered by the Civil Retirement Law, namely Saudi civilian employees appointed to grades, with rules for those holding more than one grade and for ministers who receive monthly allowances.
تسري أحكام هذا النظام على جميع الموظفين السعوديين المدنيين المعينين على مراتب في الميزانية العامة للدولة أو ميزانيات الهيئات العامة ، على أنه إذا شغل الموظف أكث
- Article 10
The Agency is liable only for pensions and retirement entitlements that fell due under this Law and the 1378 and 1381 AH retirement laws; the Ministry of Finance or the public body bears those that fell due under earlier laws.
لا تلتزم معاشات التقاعد إلا بالمعاشات والعائدات التقاعدية التي تكون قد استحقت وفقًا لأحكام هذا النظام ونظامي التقاعد لعامي 1378 و 1381هـ. أما المعاشات والتعويضا
- Article 33
The Ministry of Finance or the public bodies pay a percentage of the salaries of hired staff in service when the Law took effect, for their earlier service, 9% for those who did not join the 1381 AH retirement law and 6% for those who did.
تدفع وزارة المالية والاقتصاد الوطني أو الهيئات العامة حسب الأحوال عن المستخدمين الموجودين في الخدمة وقت نفاذ هذا النظام الخاضعين عند نفاذه للأحكام المنصوص عليها
- Article 36
The article provides that where a pensioner who became entitled to the pension before this Law took effect dies after it took effect, the beneficiaries are treated under the provisions of this Law.
إذا توفي بعد نفاذ هذا النظام صاحب معاش استحقه قبل نفاذه، فيعامل المستحقون عنه وفقًا لأحكام هذا النظام.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.