14% bonus of annual salary for those leaving service without pension benefit in Saudi

14% bonus of annual salary for those leaving service without pension benefit in Saudi

RIYADH — The new Civil Pension Law, approved by the Council of Ministers on June 14, stipulates that those employees, whose service ends without reaching the period that entitles them to benefit from pension, will have a bonus of 14 percent of the annual salary for each year of their service.

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

The official Umm Al-Qura newspaper published details of the new law, which consists of some amendments to the previous Civil Pension Law, as well as Law of Benefit Exchange between the Civil and Military Pension Laws and Social Insurance Law related to employees’ dues upon retirement as a reward or pension. All these laws are approved by the last weekly session of the Cabinet.

For the payment of bonus stipulated in articles 18 and 23 of the Civil Pension Law, it is required to reach the age of 60 or death, whichever is earlier. If the employee’s service ends by reaching the age of