Article 38 of the Saudi Civil Retirement Law
المادة 38 من نظام التقاعد المدني
The article provides that an employee who no longer holds Saudi Arabian nationality is granted an award calculated under Article 23 of the Law.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
إذا لم يعد الموظف متمتعاً بالجنسية العربية السعودية، يُمنح مكافأة تحسب وفق أحكام المادة (الثالثة والعشرين) من 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 38 explained in plain English
This article deals with the case of an employee who no longer holds Saudi Arabian nationality.
The rule: the employee is granted an award calculated under the provisions of Article 23 of the Law.
How it is calculated under Article 23:
- 14% of the annual salary for each year of the employee's service.
- 10% of the annual salary for each year counted for retirement, if the service ended by resignation or dismissal for a disciplinary reason.
- The annual salary is 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/80) dated 20/8/1443 AH. The article does not state the reason nationality was lost; it covers every case in which the employee no longer holds it.
Note: paragraph 1 of Article 23 bis provides that payment of the award referred to in Articles 18 and 23 requires reaching the age of 60 or death, whichever comes first. This article refers to Article 23 for the method of calculation and does not itself say whether that condition applies to this case.
Anyone in this situation is best advised to consult a lawyer specializing in retirement and administrative cases to find out what applies to their circumstances.
Practical example
An employee worked in a government body for 12 years and then no longer held Saudi Arabian nationality; the last monthly salary was SAR 10,000. The award is calculated under Article 23: the annual salary is SAR 120,000, and 14% of it is SAR 16,800 for each year.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 38 of the Saudi Civil Retirement Law
What retirement entitlement does an employee who has lost Saudi nationality have?
The employee is granted an award calculated under the provisions of Article 23 of the Law.
How is the award calculated for someone who is no longer Saudi?
Under Article 23: 14% of the annual salary for each year of service, or 10% if the service ended by resignation or disciplinary dismissal; the annual salary is the last monthly salary multiplied by 12.
Amendment history
Royal Decree No. M/80 — 20/8/1443 AH
Official amendment text (Arabic)
- عُدلت هذه المادة وذلك بموجب المرسوم الملكي رقم (م/80) وتاريخ 1443/8/20هـ، لتكون بالنص الآتي: "إذا لم يعد الموظف متمتعاً بالجنسية العربية السعودية، يُمنح مكافأة تحسب وفق أحكام المادة (الثالثة والعشرين) من هذا النظام".
Original text before the amendments (Arabic)
الأحوال الآتية تكون سببًا في حرمان صاحب المعاش أو المستحق من المعاش:
1 - إذا تجنس بغير الجنسية العربية السعودية.
2 - إذا استخدم في حكومة أو منظمة أجنبية بدون إذن رسمي.
ولا يسري هذا الحكم على الزوجة غير السعودية أو الزوجة التي تعود لجنسيتها غير السعودية بسبب وفاة زوجها.
Articles this article refers to
More articles on Retirement End-of-Service Award
- Article 23Amended by M/118
An employee whose service ends before reaching pension eligibility receives a gratuity of 14% of the annual salary for each year, or 10% if service ends by resignation or disciplinary dismissal.
فيما عدا الحالات المنصوص عليها في المواد السابقة والحالتين المنصوص عليهما في الفقرتين (2) و(3) من المادة (الثالثة والعشرين مكرر)، إذا انتهت خدمة الموظف، ولم تبل
- Article 23 bis
Payment of the retirement gratuity requires reaching sixty or death, a pension is due after ten years of service and age sixty, and someone with five years may request a notional period be added to qualify for a pension.
- تم إضافة هذه المادة وذلك بموجب المرسوم الملكي رقم (م/118) وتاريخ 1443/11/16هـ، وتكون بالنص الآتي: " 1- يشترط لصرف المكافأة - المنصوص عليها في المادة (الثامنة
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.