Article 16 of the Saudi Civil Retirement Law
المادة 16 من نظام التقاعد المدني
Service counted for retirement is actual time spent in posts covered by the Law, excluding unauthorized absence, unpaid leave other than sick and study leave, periods of suspension from duty without pay, and fractions of a month.
Official text (Arabic)
This article has not been amended since the law was issued.
مدة الخدمة التي تحسب في التقاعد هي المدد الفعلية التي قضيت في إحدى الوظائف المنصوص عليها في المادة الثانية من هذا النظام أو التي يكون شاغلها خاضعًا لأنظمة التقاعد السابقة بعد استبعاد المدد الآتية:
1 - مدد الغياب بدون إجازة والإجازات التي تمنح للموظف بدون مرتب ما عدا الإجازة المرضية والإجازة الدراسية.
2 - مدد كف اليد التي تقرر حرمان الموظف من مرتبه عنها.
3 - كسور الشهر في مدة الخدمة.
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 16 explained in plain English
This Article answers an important question for every employee: what period counts toward his retirement?
The rule: The actual periods spent in one of the posts referred to in Article 2 are counted, that is, posts of Saudi civilian employees appointed to grades in the State's general budget or the budgets of public bodies, or in posts whose holders were subject to the earlier retirement laws.
Periods excluded:
- Periods of absence without leave, and unpaid leave, except sick leave and study leave, which are not excluded under this item.
- Periods of suspension from duty for which it was decided to deprive the employee of his salary. What is excluded is the period of suspension accompanied by a decision to withhold salary.
- Fractions of a month in the period of service, that is, days that do not make up a full month.
The importance of this Article is that the counted period of service is the basis on which the conditions of entitlement and the method of calculation in the Law are built. As for unpaid study leave and secondment, the following Article 17 regulates their inclusion in the counted period and the conditions for paying their deductions.
If you believe your employer has excluded from your period something that may not be excluded, you may consult a lawyer who specializes in retirement and administrative matters.
Practical example
Faisal worked in a government body for 22 years, 5 months and 12 days, including 6 months of unpaid leave for personal circumstances and two months of sick leave. The six months of unpaid leave and the fraction of a month (12 days) are excluded, while the sick leave remains counted.
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 16 of the Saudi Civil Retirement Law
Is sick leave counted in the retirement period?
Yes. The Article excepts sick leave from the excluded leaves, so it is not excluded from the period.
Is unpaid leave counted for retirement?
Unpaid leave is excluded from the counted period, except sick leave and study leave.
Is the period of suspension from duty counted for retirement?
Periods of suspension from duty for which it was decided to deprive the employee of his salary are excluded.
Are days that do not make up a month counted?
No. Fractions of a month in the period of service are excluded.
Articles this article refers to
More articles on Service Counted Toward Retirement
- 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
- Article 32
An employee who is reinstated may have earlier service counted if he applies within a year of returning and repays what he received for it, in a single payment within six months or in installments.
الموظف الذي يُعاد للخدمة في وظيفة خاضعة لأحكام هذا النظام ويكون قد سبق له أن تقاضى تعويضًا أو مكافأة أو عائدات تقاعدية في ظل الأنظمة السابقة أو يكون قد تقاضى مك
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.

