In force Last amended 25/7/1442 AH
Saudi Unemployment Insurance Law
نظام التأمين ضد التعطل عن العمل
The law covers its relationship to social insurance, its application to Saudi workers, contributions and insured persons' rights, the compensation amount, when compensation is due or suspended, supervision, the right to object, and penalties.
- Articles
- 29
- In force
- 29
- Amended
- 3
- Issued
- 12/3/1435 AH
Issued by: مرسوم ملكي رقم ( م/18 ) بتاريخ 12 / 3 / 1435
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Unemployment Insurance Law by topic
Persons Covered by Unemployment Insurance8 articlesUnemployment Insurance Contributions3 articlesEligibility for Unemployment Compensation3 articlesAmount and Duration of Unemployment Compensation5 articlesRegistering and Claiming Unemployment Compensation3 articlesSuspending Unemployment Compensation1 articleRoles of the Social Insurance Corporation and the Ministry4 articlesViolations and Objections4 articles
Articles of the Saudi Unemployment Insurance Law
- Article 1يقصد بالألفاظ والعبارات الآتية – أينما وردت في هذا النظام – المعاني المبينة أمامها، ما لم يقتض السياق خلاف ذلك: الوزارة : وزارة العمل.…
- Article 2The article makes unemployment insurance a branch of social insurance that ensures compensation for subscribers who are out of work, under the Law's provisions.
- Article 3The article applies the Law compulsorily to Saudi workers without discrimination of sex if under 59 when it starts to apply to them, and stops a subscriber's contributions at age 60.
- Article 4The article requires employers to apply the Law and the Regulations from the day the conditions are met, and refers the way employers and subscribers register with the Organization to the Regulations.
- Article 5The article divides the tasks of applying the Law between the General Organization for Social Insurance and the Ministry, and sets what each body checks of eligibility conditions and suspension cases.
- Article 6The article provides for a committee formed by decision of the Minister from representatives of the Ministry and the Organization to coordinate in applying the Law, and refers its rules of work to the Regulations.
- Article 7The Article sets contributions by a decision of the Council of Economic and Development Affairs at between 0.5% and 2% of wages, with the employer paying half and the subscriber the other half.Amended M/160
- Article 8The Article lists the conditions a subscriber must meet to receive unemployment compensation, including Saudi nationality, completing work periods and not leaving work voluntarily.
- Article 9The Article makes compensation payable from the first day of the month after the Article 8 conditions are met, provided registration was made within the period in Article 10.
- Article 10The Article requires the subscriber to register with the Ministry within 90 days of leaving work, the beneficiary to notify it within 7 days of changes, and the employer to provide the Ministry with information.
- Article 11The Article sets compensation at 60% of the average contribution-subject wages for each of the first three months, and 50% for each month after that.
- Article 12The Article sets a maximum of SAR 9,000 per month for the first three months and SAR 7,500 afterwards, and raises compensation to the job-search allowance if it falls below it.
- Article 13The Article sets the maximum payment period at 12 months, continuous or not, for each entitlement, and no more than 12 months within any 24 consecutive months.
- Article 14The Article sets the work periods under the Law required for compensation the first, second, third and later times, and when a claim counts as a new entitlement.
- Article 15The Article lists the cases in which payment of compensation stops immediately, and allows it to resume from the first day of the month after notifying the Ministry within 90 days of the obstacle ending.
- Article 16The Article refers to the Implementing Regulations to set how the contribution months recorded in the subscriber's favor are calculated.
- Article 17The Article provides that the subscriber's age is determined by their birth certificate or the certificate issued by the competent authority under the law.
- Article 18The Article provides that the employer's failure to pay contributions does not affect the beneficiary's entitlement to the compensation provided by the Law.
- Article 19The Article allows the beneficiary to combine unemployment compensation with specified social insurance compensations, such as the lump-sum compensation, annuities and family-member pensions.
- Article 20The Article refers to the Implementing Regulations to set the procedures and times for paying compensation amounts.
- Article 21The Article provides that unemployment compensation may not be seized or assigned except under the same conditions set for wages in the Labor Law.
- Article 22The Article gives inspectors of the Organization and the Ministry the power to monitor application of the Law, requires employers to give them information and records, and requires inspectors to keep confidentiality and treat people well.
- Article 23The Article lets employers and subscribers object to decisions of the Organization before the Governor or the Board of Directors, and then file a complaint with the judicial body competent in labor cases.
- Article 24The Article lets employers and subscribers object to Ministry decisions under its objection procedures, then bring a grievance before the competent judicial body if the objection is not accepted.
- Article 25The Article sets fines for violating the Law on employers and those who give incorrect data, how they are imposed and objected to within 30 days, and that they lapse after 5 years.
- Article 26The Article voids any agreement or settlement that contradicts the Law, made by those it covers, if it would harm subscribers' rights or impose additional obligations on them.
- Article 27The Article provides that the Social Insurance Law applies to matters the Unemployment Insurance Law does not address, to the extent consistent with its nature.
- Article 28The Article requires the Minister to issue the Implementing Regulations with the Board of Directors' approval within 60 days of the Law's publication, and to publish them in the Official Gazette.
- Article 29The Article provides that the Law takes effect from the first day of the month following the end of 180 days from its publication in the Official Gazette.