Article 19 of the Saudi Civil Retirement Law
المادة 19 من نظام التقاعد المدني
The pension is settled at one-fortieth of the last monthly salary for each year of service counted for retirement, with a maximum of forty years.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
مع مراعاة أحكام الحالات المختلفة المنصوص عليها في هذا النظام، يسوى المعاش عن مدة الخدمة بواقع جزء من أربعين جزءًا من المرتب الشهري الأخير وذلك عن كل سنة من سنوات الخدمة المحسوبة في التقاعد، على ألا تتجاوز أربعين سنة .
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 19 explained in plain English
This Article is the basic rule for calculating the retirement pension for the period of service.
The formula: Pension = (number of years of counted service ÷ 40) × last monthly salary.
- Basis of calculation: the employee's last monthly salary.
- For each year: one-fortieth of this salary, for each year of service counted for retirement.
- Maximum: no more than 40 years are counted, so someone who served 40 years has a pension equal to his last monthly salary under this formula.
"Subject to the provisions of the various cases": The Article begins with this phrase to note that the Law contains cases with special rules. Among them is the following Article 20, which settles the pension of an employee who dies or is dismissed for total disability on the basis of 40% of his last salary or the pension calculated under this Article, whichever is greater.
The current wording of the Article was amended by Royal Decree No. M/75 dated 21/10/1396 AH. It comes after Article 18, which determines when an employee is entitled to a pension in the first place: Article 18 answers "do I qualify?", and this Article answers "how much do I receive?".
Practical example
Abdulrahman retired after 30 years of counted service, and his last monthly salary was SAR 12,000. His pension is calculated as 30 ÷ 40 × 12,000 = SAR 9,000 per month.
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 19 of the Saudi Civil Retirement Law
How is the civil retirement pension calculated?
The pension is settled at one-fortieth of the last monthly salary for each year of service counted for retirement.
Is there a maximum number of years of service in calculating the pension?
Yes. The years counted may not exceed forty.
Is the pension calculated on the average of salaries or the last salary?
The Article provides that the calculation is based on the last monthly salary.
Amendment history
Royal Decree No. M/75 — 21/10/1396 AH
Official amendment text (Arabic)
عدلت هذه المادة بموجب المرسوم الملكي رقم (م/75) وتاريخ 21 /10 /1396 هـ ، لتكون كما يلى :
مع مراعاة أحكام الحالات المختلفة المنصوص عليها في هذا النظام، يسوى المعاش عن مدة الخدمة بواقع جزء من أربعين جزءًا من المرتب الشهري الأخير وذلك عن كل سنة من سنوات الخدمة المحسوبة في التقاعد، على ألا تتجاوز أربعين سنة .
Original text before the amendments (Arabic)
مع مراعاة أحكام الحالات المختلفة المنصوص عليها في هذا النظام، يسوى المعاش عن مدة الخدمة بواقع جزء من أربعين جزءًا من متوسط المرتب الشهري في السنتين الأخيرتين وذلك عن كل سنة من سنوات الخدمة المحسوبة في التقاعد، على أن لا يتجاوز المعاش أربعة أخماس المتوسط المشار إليه ولا يؤثر هذا القيد على وجوب استمرار حسم العائدات التقاعدية على الموظف طوال مدة خدمته في وظيفة خاضعة لأحكام هذا النظام، وإذا خفض المرتب أو امتنع صرفه خلال السنتين الأخيرتين فيحسب المتوسط كما لو كان المرتب يصرف كاملًا، وإذا قلت مدة الخدمة عن سنتين فيحسب المتوسط على أساس كامل الخدمة الفعلية.
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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.