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The Pension law in Al Madinah, as well as in all parts of Saudi Arabia, is regulated by the Saudi Arabian General Organization for Social Insurance (GOSI). The law mandates that both employers and employees have to make respective contributions to the pension fund. The GOSI pension system covers all Saudi employees in the private sector, as well as non-Saudi workers who wish to take advantage of the scheme.
Pension-related issues may at times require legal advice or intervention. Some of these situations could include disputes over entitlements, issues with incorrectly calculated benefits, grievances with the manner of distribution of benefits, or problems with delays in disbursements. Having a legal expert assist you in these matters can ensure accuracy and help protect your rights.
The local laws about pensions in Saudi Arabia focus on ensuring that employees in the private and public sectors are granted a secure future post-retirement. For instance, the Wage Protection System (WPS) necessitates that all Saudi workers in the private sector need to be registered with GOSI. Employers contribute 9% of an employee’s wage and the employee contributes 8% to the pension fund. The GOSI scheme also provides for occupational hazard benefits in case of work-related injuries or disabilities. Non-Saudi workers also have the choice to subscribe to the scheme.
Any Saudi national employed in the private sector is automatically eligible. Non-Saudi nationals also have the option to join the scheme.
The employer typically arranges for the remittance of contributions with GOSI, although workers can check whether their contributions have been made.
The pension amount is calculated based on the worker’s wage and their years of service.
For Saudi nationals working in the private sector, it is compulsory. For non-Saudi nationals, it is voluntary with the option to join.
Besides retirement benefits, the GOSI pension scheme also provides occupational hazard benefits in case of work-related injuries or disabilities.
For further information or help, one can consult with the General Organization for Social Insurance (GOSI), Ministry of Human Resources and Social Development in Saudi Arabia, or various legal consultation firms who are well-versed with pension laws and regulations.
If you require legal advice or need to take legal action concerning your pension in Al Madinah, it is suggested to consult with a trusted legal practitioner or a law firm specializing in pension and labor laws. Always make sure to bring all relevant documents when consulting with your lawyer
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