Article 2 of the Saudi Civil Retirement Law
المادة 2 من نظام التقاعد المدني
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 أكثر من مرتبة من هذه المراتب فلا تسري في حقه أحكام هذا النظام إلا بالنسبة للوظيفة ذات المرتب الأكبر.
ولا تسري أحكام هذا النظام على من يشغل مرتبة وزير ممن لهم مخصصات شهرية عند شغلهم هذه المرتبة إلا إذا اختاروا التنازل عن المخصص الشهري لقاء الانتفاع بمزايا هذا النظام.
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 2 explained in plain English
This Article sets out the scope of application of the Civil Retirement Law, that is, who benefits from its provisions and who is not covered by it.
The general rule: The Law applies to all Saudi civilian employees appointed to grades in the State's general budget or in the budgets of public bodies. The terms "employee" and "public body" are understood as defined in Article 1: employee includes employees and hired staff, and public body includes public institutions, municipalities and any institution whose law provides that its personnel are subject to this Law.
Someone who holds more than one grade: If an employee holds more than one of these grades, the provisions of the Law apply to him only in respect of the position with the higher salary.
Ministers who receive monthly allowances: The Law does not apply to someone who holds the rank of minister and who has monthly allowances while holding that rank, unless they choose to waive the monthly allowance in return for benefiting from the advantages of this Law. So this is a choice left to the person concerned.
Article 3 completes the picture by identifying the body that manages the retirement fund, which is the Retirement Pensions Agency. If you are unsure whether your position is covered by the Law, it is best to consult a lawyer who specializes in retirement and administrative matters.
Practical example
Khaled is a Saudi civilian employee appointed to a grade in a municipality, and he also works in a grade with a lower salary in another government body. Under this Article, the provisions of the Civil Retirement Law apply to him only in respect of the position with the higher salary.
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 2 of the Saudi Civil Retirement Law
Does the Civil Retirement Law cover municipality and public institution employees?
Yes. The Law applies to Saudi civilian employees appointed to grades in the budgets of public bodies, and under Article 1 public bodies include public institutions and municipalities.
What if an employee holds two positions?
If an employee holds more than one grade, the provisions of the Law apply to him only in respect of the position with the higher salary.
Is a minister subject to the Civil Retirement Law?
A minister who has a monthly allowance is not covered by the Law unless he chooses to waive the monthly allowance in return for benefiting from the Law's advantages.
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 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 11
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.
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 المد
- 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.