Article 7 of the Saudi Unemployment Insurance Law

This Article regulates unemployment insurance contributions. Its main provisions:

• Who sets the rate: the contribution rate is set by a decision of the Council of Economic and Development Affairs, on the Minister's proposal, after the board of directors of the Organization (the General Organization for Social Insurance) gives its opinion, according to a mechanism set out in the Implementing Regulations.
• The limits: the rate may not exceed 2% and may not be less than 0.5% of the wage subject to contributions. The Article sets a framework; the actual rate is set by that decision.
• The split: the employer pays half of the set contribution monthly, and the subscriber pays the other half.

The current text is the one issued when the Article was amended by Royal Decree No. M/160 dated 11/11/1441 AH.

The Article is tied to the eligibility condition in Article 8, which includes completing the work periods set in Article 14, so contributions are the basis of protection. The Implementing Regulations set how contribution months are calculated, according to Article 16. It is important for a worker to know that an employer's failure to pay contributions does not affect the worker's entitlement to compensation, as Article 18 provides.

To find the rate currently applied, refer to the decision issued by the Council of Economic and Development Affairs. Anyone with a dispute over the calculation of contributions should consult a lawyer specialized in social insurance.