Article 12 of the Saudi Unemployment Insurance Law
المادة 12 من نظام التأمين ضد التعطل عن العمل
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 مقدار التعويض المنصوص عليه في المادة (الحادية عشرة) عن مقدار إعانة البحث عن عمل – المقررة نظاماً – فإنه يزاد ليكون مساوياً لذلك الحد على ألا يتجاوز التعويض (100%) مائة في المائة من متوسط الأجور الشهرية الخاضعة للاشتراك.
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 12 explained in plain English
This Article sets the limits on the compensation amount calculated under Article 11, from two sides:
First: the maximum
- SAR 9,000 for each of the first three months.
- SAR 7,500 for each month beyond that.
If calculating at 60% or 50% of the average wages gives an amount higher than these limits, only the maximum is paid.
Second: raising it to the job-search allowance
If the compensation calculated under Article 11 is less than the job-search allowance set by law, it is increased to equal it, provided that the compensation does not exceed 100% of the average monthly wages subject to contributions. The Article does not state the amount of that allowance; the reference is what is set by law.
As a reminder, Article 11 makes compensation 60% of the average wages for each of the first three months and 50% for each month after that, and the average is one twenty-fourth of the total wages subject to contributions over the last 24 months. Article 12 does not change the method of calculation; it puts a ceiling on it and a conditional minimum.
Article 13 then sets the maximum period of payment. Anyone who needs to verify the correctness of their amount in a particular case should consult a lawyer specialized in social insurance.
Practical example
Sultan's average wages subject to contributions are SAR 20,000, so 60% of it is SAR 12,000, but in the first three months he is paid only SAR 9,000 per month because that is the maximum, and then SAR 7,500 per month afterwards instead of SAR 10,000.
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 12 of the Saudi Unemployment Insurance Law
What is the maximum unemployment compensation?
SAR 9,000 for each of the first three months, and SAR 7,500 for each month after that.
What if the compensation is less than the job-search allowance?
It is increased to equal the job-search allowance set by law, provided it does not exceed 100% of the average monthly wages subject to contributions.
Articles this article refers to
More articles on Amount and Duration of Unemployment Compensation
- Article 11
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.
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%) خ
- 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.