Article 20 of the Saudi Civil Retirement Law

This Article sets a minimum pension for a deceased or disabled employee, so that he or his family is not deprived of a suitable pension if his service was short.

Who is covered:

• An employee who has died.
• An employee dismissed from service because of total inability to work.

Method of calculation: His pension is settled on the basis of the greater of two amounts:

1. 40% of his last monthly salary.
2. The pension due for his counted period of service under Article 19, that is, one-fortieth of the last monthly salary for each year of service, up to a maximum of forty years.

Someone with short service benefits from the 40% rate, and someone whose service was long enough that his calculated pension exceeds this rate receives the pension for his period of service.

Following it is Article 21, which deals with a more specific case: if the death or disability arose from work and during its performance, the pension is settled on the basis of four-fifths of the last monthly salary. So Article 20 is the general rule for death and disability, and Article 21 is for cases arising from work.

Because determining whether a disability is total or arose from work affects the amount of the pension, in a dispute it is advisable to consult a lawyer who specializes in retirement and administrative matters.