Article 14 of the Saudi Civil Retirement Law
المادة 14 من نظام التقاعد المدني
The deductions and the share are calculated on the basis of the full basic salary, without the additions granted on it.
Official text (Arabic)
This article has not been amended since the law was issued.
تحسب الحسميات وكذلك الحصة على أساس كامل المرتب الأساسي ودون الإضافات التي تمنح عليه.
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 14 explained in plain English
This Article answers a common question: on which part of the salary is the retirement deduction calculated?
The Article provides that the deductions (what is deducted from the employee) and the share (what the employer body pays) are calculated on the basis of:
- The full basic salary, that is, the basic salary in its entirety without reduction.
- Without the additions granted on the basic salary; these additions are not included in the calculation base.
The Article does not list the types of additions meant; it is content with the general rule: the base is the basic salary alone.
This Article complements Article 13, which sets the percentage: 9% of the employee's salary is deducted monthly and the body pays a matching share. Article 13 states "how much" and this Article states "from what amount". So if an employee has additions on top of his basic salary, the 9% is calculated on the basic salary only.
If you have a dispute with your employer about what is included in the basic salary and what counts as an addition, you may consult a lawyer who specializes in retirement and administrative matters.
Practical example
Noura's basic salary is SAR 9,000, and she receives additions on top of it of SAR 2,000. The retirement deductions are calculated on the basic salary only, so 9% of SAR 9,000, which is SAR 810, is deducted from her, and nothing is calculated on the additions.
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 14 of the Saudi Civil Retirement Law
Is the retirement deduction calculated on allowances and additions?
No. The deductions and the share are calculated on the basis of the full basic salary, without the additions granted on it.
Is the government body's share calculated the same way?
Yes. The Article provides that the deductions, and likewise the share, are calculated on the basis of the full basic salary.
More articles on Retirement Deductions
- Article 13
A 9% deduction is taken from the salary of the employee covered by the Law each month, the Ministry of Finance or the public body pays a matching share, and the Council of Ministers may increase the government's share.
يقتطع من الموظف المنتفع بهذا النظام (9%) من مرتبه شهريًّا، كما تؤدي وزارة المالية والاقتصاد الوطني أو الهيئة العامة حصة مماثلة لما يؤديه الموظف، ويجوز بقرار من
- Article 17
Secondment and unpaid study leave count toward retirement if the deductions due are paid on the basis of the full salary of the original post, with rules for how and when they are paid and the effect of failing to pay.
تدخل مدة الإعارة والإجازة الدراسية بدون مرتب ضمن المدد المحسوبة في التقاعد وتؤد الحسميات المستحقة عنها على أساس كامل مرتب الوظيفة الأصلية ويؤديها الموظف المعار
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.