Bonus of 14% of annual salary for those who leave the service without a pension

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Saudi Gazette report

Riyadh — The new law on civil pensions, approved by the Council of Ministers on June 14, stipulates that employees whose service ends without reaching the period that entitles them to benefit from the pension, will benefit from a bonus of 14% of the annual salary for each year. of their service.

If the employee’s service is terminated due to resignation or dismissal as a disciplinary measure, the bonus is calculated on the basis of 10% of the annual salary for each year calculated from the years of service, was stated in the new law.

The official Umm Al-Qura newspaper published the details of the new law, which consists of some amendments to the old law on civil pensions, as well as the law on the exchange of benefits between the laws on civil pensions and military personnel and the Social Insurance Act regarding employees’ contributions on retirement as a reward or pension. All these laws are approved by the last weekly session of the Cabinet.

For the payment of the premium provided for in Articles 18 and 23 of the Civil Pensions Act, it is necessary to reach the age of 60 or death, whichever comes first. If the employee’s service ends on reaching the age of 60 and without reaching at least ten years of service which entitles him to a pension, in such a situation he is entitled to a pension.

In the law on social insurance, if the subscriber quits his job, he has the right to receive the fixed compensation due in the event of not reaching the age of 60 or in the event of disability according to the cases provided for in the implementing regulations.

Under the Benefits Exchange Act, if the employee’s period of service is at least five years and has reached the age of 60, he can request the inclusion of a nominal period , provided that the period after inclusion does not exceed ten years, and that he must pay the full contribution for each month of the additional period, on the basis of his last monthly salary.

It is not permitted, in the event of a merger resulting from a transformation or privatization, to cumulate the retirement pension with the salary of the employment covered by any of the civil and military pension laws.

In the event of the privatization of public services or the transfer of their employees from one law to another, the employer is obliged to pay the additional costs relating to both laws, in accordance with the provisions of the law.

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