Article 11 of the Saudi Unemployment Insurance Law
المادة 11 من نظام التأمين ضد التعطل عن العمل
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يصرف التعويض المنصوص عليه في هذا النظام بواقع (60%) ستين في المائة من متوسط الأجور الشهرية الخاضعة للاشتراك عن كل شهر من الأشهر الثلاثة الأولى وبواقع (50%) خمسين في المائة من هذا المتوسط عن كل شهر يزيد على ذلك.
2- يقصد بمتوسط الأجور الشهرية جزء من أربعة وعشرين جزءًا من مجموع الأجور الخاضعة للاشتراك طوال الأربعة والعشرين شهراً الأخيرة من مدة الاشتراك.
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 11 explained in plain English
This Article explains how the monthly compensation amount is calculated:
- The first three months: compensation is paid at 60% of the average monthly wages subject to contributions for each of those months.
- After the third month: it is paid at 50% of that average for each month beyond that.
How is the average calculated? The average monthly wage is one twenty-fourth of the total wages subject to contributions over the last twenty-four months of the contribution period. That is, the contribution-subject wages of the last 24 months are added up and divided by 24. Note that the calculation is based on the wage subject to contributions, not on everything the worker receives.
The Article does not stand alone: Article 12 sets a maximum for compensation of SAR 9,000 per month for the first three months and SAR 7,500 afterwards, and raises the compensation if it is less than the job-search allowance set by law, provided it does not exceed 100% of the average. Article 13 sets the maximum payment period.
The start of payment depends on registering within the period set in Article 10 and on the conditions of entitlement being met. Anyone who believes their compensation was miscalculated may object through the means the Law provides, and may consult a lawyer specialized in social insurance.
Practical example
Ali's total contribution-subject wages over the last 24 months were SAR 192,000, so the monthly average is SAR 8,000. Ali is entitled to SAR 4,800 (60%) for each of the first three months, then SAR 4,000 (50%) for each month after that.
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 11 of the Saudi Unemployment Insurance Law
What percentage of salary is unemployment compensation?
60% of the average monthly wages subject to contributions for each of the first three months, and 50% for each month after that.
How is the average wage calculated in unemployment insurance?
By adding up the wages subject to contributions over the last 24 months of the contribution period and dividing by 24.
Is there a maximum on the compensation?
Yes. Article 12 sets it at SAR 9,000 per month for the first three months and SAR 7,500 afterwards.
More articles on Amount and Duration of Unemployment Compensation
- Article 12
The 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.
1- يكون الحد الأعلى لمبلغ التعويض (9,000) تسعة آلاف ريال عن كل شهر من الأشهر الثلاثة الأولى، و(7,500) سبعة آلاف وخمسمائة ريال عن كل شهر يزيد على ذلك. 2- إذا قل
- Article 13
The 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.
تكون المدة القصوى لصرف التعويض اثني عشر شهراً متصلة أو متقطعة عن كل مرة من مرات الاستحقاق، على ألا تزيد هذه المدة عن اثني عشر شهراً خلال كل أربعة وعشرين شهراً م
- Article 19
The Article allows the beneficiary to combine unemployment compensation with specified social insurance compensations, such as the lump-sum compensation, annuities and family-member pensions.
يحق للمستفيد الجمع بين التعويض المنصوص عليه في هذا النظام وبين تعويضات نظام التأمينات الاجتماعية الآتية: 1 - التعويض المقطوع وتعويض الدفعة الواحدة المستحقة له ط
- Article 21
The Article provides that unemployment compensation may not be seized or assigned except under the same conditions set for wages in the Labor Law.
التعويض المنصوص عليه في هذا النظام غير قابل للحجز أو التنازل إلا وفق الشروط نفسها المحددة فيما يتعلق بالأجور المنصوص عليها في نظام العمل.
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.