Article 23 of the Saudi Civil Retirement Law

This Article regulates the retirement gratuity for someone whose service ends before he reaches the period that gives him the right to a pension.

When it applies: If the employee's service ends and its length does not reach what gives him the right to a pension, except for:

• The cases provided for in the preceding Articles.
• The two cases provided for in paragraphs 2 and 3 of Article 23 bis, which are: someone who served at least 10 years and reached sixty is entitled to a pension, and someone who served at least 5 years and reached sixty may request that a notional period be added so as to be entitled to a pension.

Amount of the gratuity:

• 14% of the annual salary for each year of his service.
• 10% of the annual salary for each year counted for retirement, if the service ended because of resignation or disciplinary dismissal.

Annual salary means the last monthly salary the employee was entitled to multiplied by 12.

The current wording of the Article was amended by Royal Decree No. M/118 dated 16/11/1443 AH. It is important that paragraph 1 of Article 23 bis makes payment of this gratuity conditional on reaching the age of sixty or death, whichever is earlier, so entitlement does not mean immediate payment. Before this Article comes Article 22 on a minister's pension.