Article 5 of the Saudi Social Insurance Law
المادة 5 من نظام التأمينات الاجتماعية · الباب الأول: الأحكام العامة
The article allows the Council of Ministers, on the Board of Directors' proposal, to create compulsory insurance products for Saudi self-employed persons and for certain categories of non-Saudi workers.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز بقرار من مجلس الوزراء -بناءً على اقتراح مجلس الإدارة- استحداث منتجات تأمينية إلزامية لأي من الفئات المبينة أدناه، ويحدد القرار الأحكام اللازمة لذلك:
أ - السعوديون -غير العمال- الذين يمارسون أعمالاً أو أنشطة أو مهناً حرة.
ب - العمال غير السعوديين، فيما لم ينص عليه في أحكام المادة (السادسة) من النظام وأحكام فرع الأخطار المهنية والتعويضات الإضافية.
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 5 explained in plain English
This article addresses categories that may not be fully protected through the usual insurance branches, and so allows compulsory insurance products to be created for them.
How is this done? By a decision of the Council of Ministers, on the proposal of the Board of Directors of the Institution. The decision itself sets the provisions needed for the product, so the article does not state contribution rates or benefits.
The categories for which such products may be created:
- Saudis who are not workers and who carry out independent businesses, activities or professions, such as people who work for themselves.
- Non-Saudi workers, but only in matters not covered by the provisions of Article 6 and the provisions of the occupational hazards and supplementary compensation branch.
This is linked to Article 6, which lists categories of workers whose subjection to the insurance branches depends on what the Board of Directors decides and on the Regulations, including domestic workers and non-Saudi seasonal workers for a period not exceeding 60 days. The insurance products for non-Saudi workers therefore cover what those provisions do not.
These products differ from the savings programs in Article 4: those are optional and are created by the Board of Directors, whereas these are compulsory and are issued by a Council of Ministers decision. Unless a decision is issued for a particular product, this article alone creates no specific obligation.
Practical example
Fahd is a Saudi engineer who works as an independent consultant for himself and does not work for an employer. This article allows people in his position to be made subject to a compulsory insurance product if the Council of Ministers issues a decision to that effect on the proposal of the Board of Directors, and his obligation would be as that decision specifies.
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 5 of the Saudi Social Insurance Law
Are self-employed professionals required to have social insurance?
The article allows compulsory insurance products to be created for Saudis who are not workers and who carry out independent businesses or professions. This is done by a Council of Ministers decision that sets the provisions.
Who decides to create compulsory insurance products?
The Council of Ministers, on the proposal of the Board of Directors of the Institution, and the decision sets the necessary provisions.
Do the insurance products cover non-Saudi workers?
Yes, in matters not covered by the provisions of Article 6 and the provisions of the occupational hazards and supplementary compensation branch.
Articles this article refers to
More articles on Social Insurance Subscription
- Article 1
The article defines the key terms used in the Social Insurance Law, such as employer, employee, worker, subscriber, compensation and insurance products.
يُقصد بالعبارات والمصطلحات التالية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتض السياق غير ذلك: النظام: نظام التأمينات الاجتماعية. اللائح
- Article 2
The article provides that a year and a month under the Social Insurance Law are counted by the Gregorian calendar.
في تطبيق أحكام النظام، يقصد بالسنة والشهر: الوحدات الزمنية حسب التقويم الميلادي.
- Article 3
The article lists the three social insurance branches covered by the Law: pensions, occupational hazards and supplementary compensation, and unemployment insurance.
يشمل النظام فروع التأمينات الاجتماعية الآتية: 1- فرع المعاشات. 2- فرع الأخطار المهنية والتعويضات الإضافية. 3- فرع التأمين ضد التعطل عن العمل.
- Article 4
The article gives the Institution's Board of Directors the power to create optional savings programs in coordination with the relevant authorities, in accordance with the provisions set by the Regulations.
لمجلس الإدارة استحداث برامج ادخارية اختيارية بالتنسيق مع الجهات ذات العلاقة، وفق الأحكام التي تحددها اللائحة.
- Article 6
The article lists categories of workers who are not subject to the insurance branches automatically, but as the Board of Directors decides and in accordance with the provisions set by the Regulations.
يكون خضوع الفئات المبينة أدناه لأحكام فروع التأمينات الاجتماعية بناءً على ما يقرره مجلس الإدارة ووفقاً للأحكام التي تحددها اللائحة، وهم: 1- العمال الذين يعملون
- Article 7
The article refers to the Regulations the method of enrollment in social insurance and the deadlines for enrolling and removing subscribers, for employers and for subscribers themselves when the employer fails to act.
تحدد اللائحة الآتي: أ- طريقة الاشتراك في فروع التأمينات الاجتماعية لكل من أصحاب العمل والمشتركين الخاضعين للنظام. ب- مهلة لأصحاب العمل للاشتراك عن المشتركين الذ
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.