Social Insurance Law

1. The pension provided for in Article 16 of this Law shall be computed by multiplying the average contributory wage or salary specified in Article 26(1) by 2.25 percent then multiplying the result by the number of contribution months, and dividing the result by 12, provided that the pension amount does not exceed 100 percent of said average. The Board of Directors may add benefits to any contributor whose contribution period exceeds such average. 2. The pension computed in accordance with the provisions of paragraph (1) of this Article shall be subject to the following: a) The minimum amount of pension payable to a contributor whose contribution period has reached 480 months shall be SAR 4,000 per month. b) If the contribution period is less than 480 months, the amount provided for in subparagraph (a) of this paragraph shall be reduced for every 12 months of contribution—and for every month in proportion thereto—which is less than such period, taking into account that the minimum pension amount for contributors whose contribution period has reached the qualifying period for pension entitlement provided for in Article 16(2) of this Law shall be SAR 2,000 per month. c) The minimum pension amount provided for in subparagraphs (a) and (b) of this paragraph may be amended pursuant to a Council of Ministers resolution issued upon a proposal by the Board of Directors based on an actuarial study. 3. If a contributor is entitled to a pension in accordance with the provisions of Article 16(3), the pension amount provided for in paragraph (1) of this Article shall be reduced by 3 percent for every 12 months—and for every month in proportion thereto—which precedes the legal age of entitlement or in which his contribution period is less than 480 months, whichever is less, provided that said percentage continues to be implemented throughout the entitlement period. 4. If a contributor, who meets the conditions of pension entitlement provided for in Article 16(2) and remains engaged in employment covered by this Law after reaching the legal age of entitlement, files for pension, the pension amount referred to in paragraph (1) of this Article shall be increased by 3 percent for every 12 months of contribution—and every month in proportion thereto—after reaching the legal age of entitlement. The Regulations shall specify the rules necessary for the application of this Article. Social Insurance Law