DECISION OF THE MINISTER OF LABOUR AND SOCIAL AFFAIRS

NO. 128/INSURANCE DATED 25/10/1421 H.

THE MINISTER OF LABOUR AND SOCIAL AFFAIRS,

Having reviewed the Social Insurance Law issued under Royal Decree No. M/33
Dated 03/09/1421 H;

Having reviewed the old Social Insurance Law Implementing Regulations

constituting the rules and procedures for registration, assessment and collection of
contributions, survey of establishments, submission of appeals, rules and procedures
for application of the Annuities Branch, rules and procedures for application of the
Occupational Hazards Branch, rules and procedures for regulating the activities of the
inspection agencies and rules and procedures for the medical board membership,
issued by the Decisions of the Minister of Labour and Social Affairs No. 2/Insurance
dated 11/9/1392 H, No. 15/Insurance dated 28/1/1395 H, No. 19/Insurance dated
7/11/1395 H, No. 61/Insurance dated 6/4/1402 H, and No. 104/Insurance dated
13/3/1411 H, respectively, and the relevant amending decisions;

As the new Law demands issuance of new implementing regulations taking into
consideration the new and revised provisions thereof; and pursuant to the Decision of
the Board of Directors of the General Organization for Social Insurance No. 735
dated 25/10/1421 H. concerning the Regulations it has adopted in substitution for the
said old Regulations,

DECIDES AS FOLLOWS:

ARTICLE (1)

For the purposes of application of the provisions of the Social Insurance Law issued
under Royal Decree No. M/33 dated 03/09/1421 H. the following Regulations
attached hereto shall be put into effect:

1. Registration and Contribution Regulations

2. Annuities Branch Benefits Regulations

3. Occupational Hazards Branch Benefits Regulations

4. Medical Board Regulations

ARTICLE (2)

For the purposes of definition of the terms set out in the Regulations mentioned in the
preceding Article, they shall have the meanings provided for in Article (2) of the Law
and in the said individual Regulations in addition to the meanings of the following
terms:

1. New Law : The Social Insurance Law issued under the Royal Decree No. M/33
dated 03/09/1421 H.
2. Old Law : The Social Insurance Law issued under the Royal Decree No. M/22
dated 06/09/1389 H.

ARTICLE (3)

The provisions of these Implementing Regulations be considered as supplementing,

explaining and elaborating the provisions of the Law.

ARTICLE (4)

1. The Governor of the General Organization for Social Insurance may amend the
forms incorporated in the Regulations attached hereto and issue such other forms as
he may deem necessary. He may also explain or detail any of the provisions of the
said Regulations.

2. The Governor may delegate some of his powers provided for in the attached
Regulations to such officials of the Organization as he may designate.

ARTICLE (5)

1. In application of the provisions of paragraph (2) of Article (68) of the Law, the
Regulations Implementing the old Law issued by the Ministerial Decisions referred to
in the preamble of this Decision shall become null and void.

2. The previously issued decisions concerning special handling of certain cases of

employers and insured workers shall remain valid, provided that they do not
contradict the provisions of the Law and the Regulations attached hereto.

3. the decisions already issued in respect of the work organization and procedures
shall remain valid so long as they do not contradict the provisions of the said Law and
Regulations until they are amended or replacement decisions are issued.

ARTICLE (6)

This Decision and the Regulations attached hereto shall be published in the official
gazette and shall take effect on and from the date on which the Law is put into effect,
and the Governor of the General Organization for Social Insurance shall take the
measures necessary to give effect thereto.
Ali I. Al-Namlah Minister of Labour and Social Affairs REGISTRATION
AND CONTRIBUTION REGULATIONS

CHAPTER I
INTRODUCTORY PROVISIONS

ARTICLE (1)
For the purposes of definition of the terms set out in these Regulations, they shall
have the meanings provided for in paragraph (2) of the Social Insurance Law and
Article (2) of the Decision of the Minister of Labour and Social Affairs No.
128/Insurance dated 25/10/1421 H (20/01/2001 G) issuing the Regulations in
addition to the following:

1. The term "employer" means any natural or legal person employing one or
more compulsorily covered workers under a contract regardless of its period,
nature or form in consideration of a wage.

2. The term "establishment" means the legal entity through which the employer
conducts his activity and which bears his name or the commercial name of such
activity.

3. The term "branches of the employer" means the various premises through
which the employer conducts one activity.

4. The term "employer's registration number" means the number of registration

of the employer or his branches with the Organization.

5. The term "insurance number" means the permanent number of the insured
person’s registration with the Organization.

6. The term "insurance card" means the card issued by the Organization to the
insured person on his registration for the first time and which bears his
permanent insurance number.

7. The term "contribution month" means the Hijrah or Gregorian month for which
contribution is payable in accordance with the calendar followed by the employer.

8. The term "contribution year" means the year for which the contribution is
payable and which starts from Moharram or January according to the calendar
used.

9. The term "basic wage" means the amount received by the insured person, who
is compulsorily covered under the Law, in consideration of his work by virtue of a
written or unwritten contract regardless of the method of payment or
computation of such wage, less the allowances that may be granted according to
the work nature, risk or place or for overtime working hours or for any other
reasons no matter under whatever titles they are granted for, and less the
grants, annual bonuses and benefits in kind.

There shall be considered as basic wage the commission, the percentage of the
sales value, and the percentage of the profit notwithstanding that it may be paid
alone or in addition to a fixed wage.

10. The term "contributory wage" means the wage of the compulsorily insured
worker according to which the monthly contribution is payable under the
provisions of Article (16) of these Regulations.

11. The term "income category" means the monthly amount chosen by the
voluntarily covered person from among the income categories included in
Schedule No. (1) attached hereto and taken as a basis for the computation of the
amount of the monthly contribution payable by him and the amount of benefits
he may be entitled to, and it shall be regarded the same as the contributory wage
in respect of the compulsorily covered person.

12. The term "insured person’s share" means:

a. the contribution payable by the compulsorily covered person for each

contribution month by deduction from his wage provided for in paragraph 2(a) of
Article (18) of the Law, or

b. the contribution payable by the voluntarily covered person for each

contribution month provided for in paragraph (1) of Article (8) and paragraph
2(b) of Article (18) of the Law.

13. The term "employer's share" means the contribution payable by the employer
on his insured worker's account for each contribution month in accordance with
the provisions of paragraphs (1) and 2(a) of Article (18) of the Law.

14. The term "period of delay" means the number of the months of delay starting
with the day immediately following the fifteenth day prescribed as the time limit
for payment of contributions and ending with the day of actual payment thereof,
counting each fraction of a month as a complete month.

15. The term " fines for delay " means the amounts the employer or voluntarily
insured person is liable to pay for the periods of delay in payment of the monthly
contributions.

ARTICLE (2)

With due regard to the successive stages of implementation of the Law and the
requirements of application of the Law and its Implementing Regulations, the
Occupational Hazards Branch shall apply to the Saudis and non-Saudis, but the
Annuities Branch shall apply to the Saudis only. Application shall be compulsory
or voluntary, as applicable, subject to the following details:

1. Compulsorily covered persons:

a. The workers who have had contractual relationship with the employer for
carrying out a work primarily within the Kingdom of Saudi Arabia in consideration
of a wage, regardless of the nature, form or duration of such relationship or of
the amount or kind of the paid wage, provided that the worker shall be under 60
Hijrah calendar years on the starting date of coverage under the Annuities
Branch, with due regard to the provisions of paragraph (2) of Article (4) of the
Law. Under this meaning, the trainee shall not be considered a worker unless his
training is intended for apprenticeship.
b. The Saudi worker who works abroad for an employer who has a head office
within the Kingdom shall be covered under the Annuities Branch so long as a
work relationship is established to have been existing between the worker and
the employer.

c. The employees of the State bodies and semi-State bodies who do not benefit
from the Civil or Military Retirement Schemes.

2. Voluntarily covered persons: are the Saudi nationals belonging to the following
categories:

a. The persons engaged in liberal professions such as physicians, engineers,

lawyers, consulting office owners, etc. subject to obtaining from the appropriate
authority a license to practice their professions.

b. The persons who conduct, for themselves, or in partnership with others, a

commercial, industrial, agricultural or service activity and are established, from
the respective commercial register or license or any other document issued by
the appropriate authorities, to have been exercising such activities.

c. Tradesmen who exercise their trades by virtue of a license issued by the

appropriate authorities, such as blacksmiths, carpenters, plumbers, and the like.

d. The workers who are employed abroad but have no work relationship with an
employer who has a head office within the Kingdom, provided that a certificate
showing his engagement in employment and duly attested by the Saudi Embassy
in the country of residence is submitted.

e. The insured persons whose compulsory coverage under the Annuities Branch
has ceased due to their departure from the scope of compulsory coverage and
have expressed their wish to continue their membership in accordance with the
provisions of Article (8) of the Law.

f. The Saudi citizens working in foreign international or diplomatic or military

missions in the Kingdom may, if not compulsorily covered, demand voluntary
coverage under the Scheme, in which case, they shall be treated the same as the
categories provided for in paragraph (4) of Article (4) of the Law.

3. Excepted Categories:

a. Government employees including the civil servants and military personnel who
are covered under the relevant retirement schemes, and this exception does not
involve the retirees who satisfy the conditions for coverage under the Scheme.

b. Foreign employees working in foreign international, diplomatic or military

mission: They are meant to be the non-saudi employees or workers who work in
any of these missions notwithstanding that the worker and his employer may not
have the same nationality.

c. Workers employed in agricultural, forestry or pastoral works: They are meant

to cover any one engaged in forests or land farming, crops watching or
agricultural machine operating and servicing. This exception does not apply to the
following categories of workers who are engaged in such activities:

1. The workers who are employed in the agricultural enterprises that manufacture
their own products.

2. The workers who are subject to the Labour and Workmen Law.

3. The workers who are employed in state bodies and semi-state bodies.

4. The workers who are employed in the companies established in accordance

with the Companies Act or Foreign Capital Investment Law.

5. The workers who are employed in private establishments, which employ

twenty or more workers.

d. The seamen who are employed on board of transporting or fishing ships. This
exception does not apply to the following categories of workers who are engaged
in such activities:

1. The workers employed in the premises of an employer who has taken the sea
or fishing works as his own trade; and in case any of such workers is transferred
from the employer's premises to the sea activities of the same employer, he shall
continue to benefit from the Law so long as it is applied to him.

2. The seamen who are employed in marine establishments that manufacture

whatever is fished by their own ships; and the Governor shall explain the
meaning of manufacturing intended by this provision.

3. The workers who are subject to the Labour and Workmen Law.

4. The workers employed in state and semi-state bodies.

5. The workers employed in companies established in accordance with the

Companies Act or Foreign Capital Investment Law.

6. The workers employed in private establishments which employ twenty or more

workers .

e. The domestic servant who is meant to be the domestic worker employed

exclusively in domestic service.

f. Foreign worker who is brought into the Kingdom to carry out works which
usually take no more than three months to complete, such as visiting physicians,
consultants and the like.

g. Artisans who are self-employed, employ no workers and take their homes as
their business premises.

h. Employer's family members who work in the family firms employing no other
workers and are taken to mean the family members provided for in paragraph (8)
of Article (2) of the Law.
The excepted categories in paragraphs (g) and (h) may request voluntary
coverage provided for in Chapter V of these Regulations.

The exception pertaining to the categories mentioned in items (c), (d), and (e)
above shall not prejudice their future coverage under the Law in accordance with
the provisions of paragraph (2) of Article (5) of the Law.
CHAPTER II
REGISTRATION

ARTICLE (3)

1. The following forms shall be used for the registration of the non-
government sector employers and their workers:

a. Form No. 1/Insurance for registration of an employer with the Scheme.

b. Form No. 2/Insurance for listing of workers employed by an employer.

c. Form No. 3/Insurance for entering and leaving employment by a Saudi

worker.

d. Form No. 4/Insurance for payment of contributions.

e. Form No. 5/Insurance for entering and leaving employment by all workers
of an employer during the month.

2. The workers in the government sector shall be registered in accordance with

the decision of appointment and shall be excluded in accordance with the
decision of termination.

3. The registration of the voluntarily covered persons shall be done by the use
of Form No. 7/Insurance for application for coverage under the Scheme by the
categories mentioned in paragraph (4) of Article (4) of the Law or for
application for continuation of coverage under the Annuities Branch pursuant
to the provisions of Article (8) of the Law.

ARTICLE (4)

1. The Governor may except some employers from using all or part of the
forms prescribed in the preceding Article and permit them to have them
replaced by alternative forms so long as that better serves the Organization
work system, particularly the automated methods of preparing employer's
accounts.

2. The Governor shall prescribe the formats and descriptions of the forms and
certificates provided for in these Regulations and the terms and conditions of
use and times of submission thereof.

ARTICLE (5)

The Organization shall print the forms provided for in these Regulations and
distribute them for a payment to be determined by the Governor or otherwise
free of charge in such cases as may be determined by the Governor.

Nevertheless, employers may, by Governor's approval, print all or some of

these forms at their own expense, but only in such quantities as are necessary
for their own use, and in no circumstances may an employer or any other
person print such forms for the purpose of trading in or selling them to others
except by the consent of the Governor. In all cases, the forms printed by
employers shall include the same particulars as those on the forms approved
by the Organization and be of the same specifications as to size, colour and
spacing and include reference to the number and date of the Governor's
approval of printing thereof.

ARTICLE (6)

If an employer has numerous branches or activities, he shall be treated in

accordance with the following rules and procedures :

1. For the purposes of determination of the starting date of coverage of each of

the employer's activities:

a. In case of various employer's activities of which each is founded according

to the applicable laws and has a legal entity and independent financial liability,
any of the activities separated from the others shall be treated as an
independent employer, notwithstanding that the proprietor of such activity is
the same proprietor of the other activity or activities.

b. In cases other than that provided for in the preceding paragraph, all
employer's activities and branches shall be considered an integrated unit so
long as the proprietor of each activity or branch is the same proprietor of all
the other activities or branches.

2. For the purposes of submission of forms and payment of contributions:

a. If the employer has numerous branches of the same activity, the group of
branches falling within the jurisdiction of one office shall all be treated as one
employer. However, each of the branches falling within the jurisdiction of
various offices, shall be treated as an independent employer.

b. If the employer has various activities of which each has its own independent
financial entity, each activity shall be considered as an independent employer,
notwithstanding that such activities fall within the jurisdiction of one office.
However, if any of such activities has no independent financial entity, it shall
be treated in accordance with the provisions of the preceding paragraph.

c. The Governor may, for the purpose of maintaining the work interest,
consider the branches or activities of the employer as an integrated unit in
their dealings with the Organization or accept centralized payment of
contributions for all branches and activities through the head office or
decentralized payment through each of the various branches of activities, or
centralized payment for some of them and decentralized payment for the
others, so long as that facilitates dealing with the employer and does not
contradict the work interests of the Organization.

ARTICLE (7)
The Organization shall maintain a full register of the employers and shall
update the same regularly. To do so, the Organization may conduct a
comprehensive field survey or inspection of establishments in all parts of the
Kingdom, have access to the data available at all state bodies, semi-state
bodies and chambers of commerce and industry and avail itself, as necessary,
of the services of the administrative bodies. The Governor shall set the
procedures for the implementation of the provisions of this Article.

ARTICLE (8)

1. The employer shall submit the duly completed forms required under these
Regulations within the prescribed time limits, and failure in doing so shall
justify the imposition of the penalties provided for in Article (62) of the Law.

2. The Governor, if he is satisfied as to the reasons of delay in submitting the

said forms, may excuse such delay and may, on the initial implementation of
Law, extend the time limit prescribed for the submission of such forms.

ARTICLE (9)

1. Subject to such decisions as may be issued, every employer to whose

establishment the Law applies shall present to the Organization's Office,
within which jurisdiction his establishment head office falls, the following:

a. An application for registration of his establishment on Form No.

1/Insurance for the head office of the establishment and a separate one for
each branch or activity treated as an independent employer, and such
application form shall be submitted to the Office, within which jurisdiction
the premises of such branch or activity falls, within two weeks at the most
from the date on which the head office of the establishment meets the
requirements of coverage under the Law.

b. The required data in respect of his workers which shall be given on forms 2,
3 and 5/Insurance, as applicable, associated with a copy of an official
document confirming the date of birth or a copy of civil status identification
card for the Saudi workers or a copy of the passport for the non-Saudi
workers, as applicable, and such forms shall be submitted along with the form
for registration of establishment referred to in paragraph (a) above, or within
the first fifteen days of the month immediately following the first month for
which contributions become payable, in which case the said forms shall be
associated with the contribution payment cheque and Form No. 4/Insurance.

2. The employer shall, after the registration of his establishment and workers
in accordance with the provisions of paragraph (1) of Article (9) of these
Regulations, do the following on timely basis:

a. To notify the appropriate office of any new worker who enters employment
provided that the notification shall be effected within the first fifteen days of
the month immediately following the month in which the worker has entered
employment. Such notification shall be made by completing Form
No.3/Insurance or 5/Insurance, as applicable, associated with a copy of the
documents referred to in the preceding paragraph 1(b) together with the
contribution payment cheque or voucher.

b. To notify the appropriate office of any worker who leaves employment,

within the time limit prescribed for payment of the contributions due for the
month of leaving employment, and such notification shall be made by
completing Form No. 3/Insurance or 5/Insurance, as applicable. The
notification shall be sent to the appropriate office together with the other forms
concerning the insured workers who are still in employment, accompanied by
the payment cheque or relevant supporting document.

3. The worker shall have the right to notify the appropriate office of his entry
into employment and request for registering him, if the employer fails to do
so, provided that such notification shall be made within the fifteen days
immediately following the time limit prescribed for the employer to register
his workers provided for in the preceding paragraphs 1(b) and 2(a), as
applicable. The appropriate office shall, in this case, force the employer to
register such worker, so long as he has met the requirements of his
registration.

ARTICLE (10)

The employer shall notify the office of the Organization of any changes in the
nature, legal status, or address of the activity he practices or in the competent
staff signatures or of loss or replacement of stamps, otherwise the employer
shall bear the consequences of failure to notify or delay in doing so. Such
notification shall be effected within two weeks from the date on which such
changes have occurred.

ARTICLE (11)

1. The offices of the Organization shall register the employer and notify him
of his registration number within two weeks from the date of submission of
the relevant forms.

2. The offices of the Organization shall issue numbers to the insured persons
upon their registration with the Organization for the first time, and the
insurance numbers thus allocated shall be permanent throughout their period
of membership in the Scheme. A new member may not be allotted an
insurance number previously allotted to another insured person who has left
service for any reason.

3. Employers shall maintain their registration numbers and their workers'

insurance numbers and quote such numbers on all correspondence concerning
the application of the provisions of the Law.

ARTICLE (12)
1. The offices of the Organization shall issue an insurance card for each
insured person upon his registration for the first time, and this card shall
contain the following particulars:

- Full name of the insured as per the official document used for his
registration.

- Insurance number.

- Such other information as the Organization may deem necessary to be

included in the card.

2. Such card shall be sent to the employer for whom the insured person is
working at the date of registration for delivery to the respective insured
person. If the employer fails to deliver an insured person’s card, he shall return
the card to the office which shall attempt to make the delivery thereof. The
card may also be delivered directly by the Organization to the respective
worker. The voluntary contributors shall receive their cards in person from
the office.

3. The contributor shall preserve his contribution card in good condition, and
he shall produce it to any employer for whom he works and take it back after it
has been duly noted by the employer. The contributor, or his family members
in the event of his death, shall quote the contribution number on all
correspondence related to any issues pertaining to the application of the
provisions of the Law.

4. If a contributor loses his contribution card, he shall immediately report the

loss to the office of the Organization which issued the card, and the office
shall issue a replacement, in which case the Organization may charge for the
replacement a fee to be determined by the Governor's decision.

ARTICLE (13)

1. The Organization shall grant every employer, upon his request, a certificate
evidencing his registration with the Scheme, and this certificate shall be
prepared in accordance with the form made for this purpose and shall not be
regarded as valid unless it bears the official stamp of the Organization.

2. Where an employer has more than one branch or activity and each branch or
activity is to be dealt with as an independent employer as provided for in
Article (6) of these Regulations, a separate certificate shall be issued for each
branch or activity and one certificate shall be issued to any group of branches
or activities considered to be one employer.

As an exception to this provision, if the branches or activities are owned by

one natural person or are financially dependent on one legal person, the
certificate shall not be issued to any of such branches or activities unless the
said employer has discharged all his obligations pertaining to all such
branches or activities notwithstanding that any of them may be treated as an
independent employer for the purposes of payment of contributions.

3. The certificate referred to above shall not be issued or renewed until the
employer submits the required forms and discharges all his obligations
towards the Organization as of the date of issue of the certificate.

4. Where the conditions for application of the Law to an establishment of an

employer have not been fully satisfied yet, the respective employer may obtain
a certificate to this effect from the Organization.

5. The certificates referred to in the preceding paragraphs shall be valid for the
period and according to the conditions set out in each certificate.

6. The said certificates shall be considered as official government documents

that are absolutely forbidden to be printed, or falsified or modified by addition
or deletion or by fraudulent alteration of the contents thereof otherwise they
shall be considered as null and void. Nor may they be used for purposes other
than those for which they are issued in accordance with the provisions of the
Law.

ARTICLE (14)

The insured person may request a statement of his period(s) of contribution to

the Scheme. Any of his family members may also request such statement in
the event of his death. In all the foregoing cases, the statement shall be given
free of charge. Such statement shall only be valid for the purpose for which it
is issued, without having any other consequential liabilities towards the third
party. The issuance of this statement shall not prejudice the Organization's
right to make such changes in the information included in the certificates as it
may deem necessary on the basis of the revealed events.

ARTICLE (15)

1. In the event of expiry of the time limits given to the employer to register his
workers or to the worker to apply for registering himself if the employer fails
to register him, retroactive registration of such worker may only be effected by
the Governor's approval subject to meeting the following requirements :

a. The fulfillment by both the employer and the worker of the conditions of
compulsory coverage under the Law during the period required to be
registered on the basis of such documents as may be satisfactory to the
Organization.

b. The required contributions shall be paid for the period for which a
retroactive registration is required on the basis of contributory wages that are
comparable with the wage recorded at the Organization for the same insured
person for a former or subsequent period, with due regard to the wages listed
in the Schedule of the income categories attached to the Regulations. For this
purpose, the contributory wage taken as a basis for payment of contributions
due for the said period shall be determined as follows:

1. If the period required to be recorded is subsequent to a period already

recorded at the Organization , the contributory wage for the first year required
to be recorded shall be the income category that is immediately higher than
the last wage recorded at the Organization, and it may be graduated upward
for the next one or more years of the period required to be recorded, with due
regard to the order of the graduated income categories shown in the said
Schedule.

2. If the period required to be recorded is earlier than a period already

recorded at the Organization, the contributory wage for the last year required
to be recorded retroactively, shall be the income (wage) category immediately
lower than the first wage recorded at the Organization, and it may be
graduated downward for the next one or more years of the remaining portion
of the period required to be recorded, on the basis of the order of the income
categories shown in the said Schedule.

In exception of this provision, the recording of wages specified by the

employer for periods not already recorded shall be accepted, if such wages
exceed the wages prescribed in the said schedule of income categories (1).

3. If the period required to be recorded falls between two periods already

recorded at the Organization, the contributory wage for the last year required
to be recorded , shall be the category immediately lower than the first wage
recorded at the Organization for the subsequent period already recorded, then
it is graduated downward for one or more years of the remaining portion of
the period required to be recorded in the manner provided for in paragraph
b(2), provided that the lowest wage reached by such graduation shall not be
smaller than the last wage recorded at the Organization for the period
preceding the period required to be recorded.

4. If an applicant for retroactive recording of an employment period has not

been previously covered under the Scheme and is required to be registered for
the first time, his contributory wages shall be determined on the basis of the
last contributory wage fixed by the employer for the last year of the period
required to be recorded, and the wage shall be graduated downward for one or
more years of the remaining portion of the period from the immediately lower
income category in the order shown in the said Schedule.

5. The Governor shall set such examples and details as may be required for the
application of the provisions of the preceding paragraphs (1).

6. As an exception to the provisions of the preceding paragraphs if an

employer applies, for the first time, for retroactive registration of his
establishment with effect from the date on which the requirements of coverage
of both his establishment and workers under the Law are met, his workers
shall be registered on the basis of such wages as the employer may specify if
they exceed the wages prescribed in the schedule of income categories(1).
c. The fines for delay shall be paid to a maximum of 100% of the due
contributions subject to the following exceptions :

1. Fines for delay with no maximum shall be imposed on the employer who is
discovered to have deducted the worker's share of contributions and retained it
without delivery of the same to the Organization due to his failure to register
the worker.

2. Where the establishments that take the initiative to apply for registration,
and they and their workers have accordingly become covered for the first time
and it has been discovered that both the establishments and their workers
should be retroactively covered, they may be exempted from all or part of the
additions for delay in accordance with the provisions of Article (30) of these
Regulations.

d. A period recorded on retroactive basis shall remain pending until the

contributions and fines are paid in full subject to the maximum limit, provided
that payment is made within three monts from the date of notification of the
employer and the insured person of the due amounts. The Governor of the
Organization may, for justifiable reasons, extend the time limit by such period
and he may deem appropiate. the Organization shall have the right to claim
full payment of the due fines for delay in the event of failure to pay the same
within the prescribed time limit (1).

2. The provisions of the preceding paragraphs shall not prejudice the

Organization's right to impose the penalties provided for in Article (62) of the
Law on the employer who violates the provisions of the Law and Regulations
thereof by his failure to record the full period of employment or register the
worker.

3. The provisions of this Article shall take effect in respect of the compulsory
contributors and shall apply to all applications for the recording of
contribution period on retroactive basis which are produced to the
Organization Offices after the introduction of these Regulations or before the
introduction thereof but have not been decided on yet (2).
CHAPTER III

RULES FOR ASSESSMENT OF CONTRIBUTIONS

ARTICLE (16)

The earnings which shall be subject to deduction of contributions provided for

in Article (18) of the Law shall be those amounts received by the insured
worker for his work, provided that such amounts are included in the following
categories and are not exceeding the sum of SR 45,000 (forty five thousand
Saudi Riyals) per month:

a. The basic wage provided for in paragraph (9) of Article (1) of these
Regulations whether paid monthly, weekly, daily or by piece or according to
number of work hours or amount of production.

b. Housing allowance paid in cash according to the amount agreed to between

the employer and the insured person.

c. Housing of which the contributory value shall be equivalent to a two-month

basic salary. As an exception to this provision, the housing shall be exempted
from contributory deductions in such cases as may be determined by the
Governor.

ARTICLE (17)

For the purposes of computation of the monthly wage of the daily-paid insured
person, the daily wage shall be multiplied by 30, and the product so obtained
shall be the monthly wage which is subject to contributory deduction.

ARTICLE (18)

1. The monthly wage of the insured person who receives his wage on a piece-
work basis, or as percentage of the sales value or on production amount basis
shall be deemed to be the monthly average of the wages he received for his
actual period of work in the preceding year.

The contributory wage of a newly-engaged insured person shall be the average

wage of a similar insured person in the same establishment.

2. The monthly wage of the insured person who receives his wage on an
hourly basis shall be computed on the grounds that every 240 paid hours are
equivalent to one month.

ARTICLE (19)

1. The monthly contribution payable in respect of any insured person shall not
be less than the contribution payable in respect of another insured person
receiving a monthly wage of SR 400. If the actual wage would otherwise be
less, the contributions payable by the employer and the insured person shall be
computed on the basis of the said wage base. The effect of this provision shall
involve only the assessment of contribution to the Social Insurance Scheme.

2. The provision of the preceding paragraph shall also apply to the apprentice
covarad by the Scheme, and if he is an unpaid apprentice, the employer shall
be liable to pay both the insured’s and employer's shares of the contribution.

3. The state and semi-state bodies shall be excepted from the application of the
provisions of the two preceding paragraphs.

ARTICLE (20)

Where an insured person works for more than one employer, each of such
employers shall pay separately for the insured the contributions payable under
the Law on the basis of the contributory wage he pays to the insured, provided
that the total contributory wages paid by all his employers shall not exceed SR
45,000 (forty five thousand Saudi Riyals) per month, otherwise the
contributory wage paid by each such employers shall be reduced on pro-rata
basis, and the Governor shall determine the details required for the application
of this provision.

ARTICLE (21)

1. contributions shall be deductible from the amounts forming the contributory

wage provided for in Article (16) of these Regulations prior to making any
other deductions for taxes, fees, debts, installments or for disciplinary
penalties, fines, hours of lateness or days of absence without pay, or the like.

2 (a) Contributions payable by the employer and deductible from the insured’s
wages during the year shall be paid in full on the basis of the whole
contributory wage agreed upon and received in the month of Moharram or
January of each year, subject to the calendar adopted by the employer,
notwithstanding that the contract of employment may be suspended or that his
wage may be insufficient for payment of the insured’s share of contribution, in
which case the insured’s share duly paid by the employer shall be regarded as
a loan which shall be settled in accordance with the provisions of the Labour
Law.

2 (b) The contributions payable in respect of the insured persons who enter
employment during the year shall be collected on the basis of the full
contributory wage for the month of their entry into employment until the end
of the insurance year, and they shall thereafter be treated on the basis
provided for in the preceding paragraph.

3. The contributions for the month of entry into employment shall be collected
on the basis of a complete month, but no contributions shall be collected for
any part of the month in which the employment is terminated unless it is
terminated at the end of the last day of the month. However, if the
employment is terminated in the same month of entry into employment, the
contributions shall be collected for the said whole month.
4. For the purposes of application of the provisions of paragraph 2(a) of this
Article, contributions shall continue to be payable in the following cases:

a. In case an insured person in an establishment covered under the Law is

loaned to another establishment uncovered under the Law and his contractual
relationship with the first establishment still exists, the first establishment shall
continue to complete the respective insurance forms and to pay to the
Organization the contributions including the insured’s share and may arrange
with the second establishment for the reimbursement of the amounts so paid.

However, if the insured is loaned to a covered establishment, such

establishment shall apply the Law to the insured as if he is one of its own
insured workers.

b. In cases of leaves of all kinds permissible under the Labour Law or

employer's own regulations.

c. In cases of unpaid days of absence permitted by the employer.

d. In case of leave taken by the Saudi insured person who is on scholarship

outside the Kingdom, for the purposes of payment of contributions for the
Annuities Branch.

ARTICLE (22)

In exception of the provisions of Article (21), the Governor may permit

assessment and payment of contributions on the basis of the actual
contributory wages received by the insured persons where he considers that
the adoption of this method is more convenient and easy for the employers.

ARTICLE (23)

In calculating and paying the due contributions, the employer shall pay the
actual amount of contributions in full including the fraction of the Riyal.

ARTICLE (24)

1. For the purposes of application of the provisions of Article 19(2) of the

Law, the raise in the contributory wage recorded for the compulsorily covered
person at the beginning of each insurance year shall not exceed 10% of his
wage recorded for the previous insurance year. This provision shall be
applicable with effect from the first insurance year immediately following his
fiftieth anniversary or from the date on which he attains such age if it happens
to be the first day of the insurance year, and it shall continue to apply until his
membership in the Scheme is terminated. The wage increase exceeding the
said percentage shall not be subject to contributory deduction.

2. In exception of the provisions of the preceding paragraph, the wage

increase exceeding 10% for workers covered under both the Annities and
Occupational Hazards shall be recorded in the cases and within the limits
shown hereunder :

a. In case of the increase in the wages of the insured persons employed in state
and semi-state bodies.

b. In case of the increase in the contributory wages specified by the employer

for the worker who has resumed employment and has had previous
contribution period for which he has received lower contributory wages, so
long as the new wage specified by the employer is SR 1,500 of less (1).

c. If the wage so specified by the employer exceeds SR 1,500 and is 10%

higher than the last contributory wage received by the worker for his previous
employment, a compounded percentage of 4% of the wage per year for his
previous employment shall be added to his current wage as a prescribed
increase multiplied by the number of the whole years falling between the date
of leaving previous employment and the date of re-employment. Accordingly,
the wage that shall be recorded for the worker shall be the resultant wage
(including the presumed increase) or the wage for his previous employment
plus 10% whichever is greater, provided that the recorded wage shall not
exceed the wage specified by the last empolyer (2).

3. The new wage of a worker who resumes membership shall only be

accepted for the worker who is covered under the Occupational Hazards
Branch (3).

ARTICLE (25)

1. The age of the insured person shall be recorded at the time of his initial
registration in accordance with the provisions of the first paragraph of Article
(48) of the Law, and such age may not be amended after it is recorded,
notwithstanding that other documents showing a different age may appear
later.

2. In exception of the provisions of the preceding paragraph, the insured’s age

recorded upon his initial registration with the Organization may be amended in
the following two cases:

a. If the amendment is made only for the correction of material errors

committed upon recording the age of the insured at the time of his first
registration.

b. If the insured is registered before these Regulations are put into effect and
his age has not been recorded in accordance with the civil status identification
card, passport (for the non-Saudi covered under the Occupational Hazards
Branch) or decision of the appropriate Medical Board of the Organization.

3. In case the date of birth is not specified by day and month, the birth shall be
deemed to have taken place on the first day of the seventh month of the
relevant Hijrah or Gregorian year, as per the calendar recorded.
ARTICLE (26)

For the purposes of application of Article 18(1) of the Law, the rate of
contributions for the Occupational Hazards Branch shall be raised to the
double as a maximum in respect of employers who refuse to abide by the
instructions issued by the Organization or the other appropriate authorities in
regard of the workers' safety and health, after such employers are warned and
a time limit is given for eliminating the violation, by means of a report to be
prepared by the appropriate authority determined by the Governor, with due
regard to the following:

1. The Governor shall, by decision to be made by him, set the raise in the rate
of contributions provided for in the preceding paragraph for the months in
which the employer continues to have violated the safety and health rules.

2. The revised contributions shall be collected for the whole month in which
the report evidencing the non-compliance of the employer with the
occupational safety and health rules, has been prepared. Such contributions
shall remain valid until the causes of violations have been fully removed and
the said instructions are thoroughly observed, provided that contributions shall
not be collected for the month in which the said causes are removed.

3. The revised contributions shall, after the employer is so notified, have the
validity of the original contributions as to payment of and times and
procedures for payment of contributions and penalties for delay in payment.

4. The decision for removing the raise in contributions shall be issued by the
Governor.

ARTICLE (27)

1. The Occupational Hazards Branch shall discontinue to apply to the insured

parsons who are serving abroad on mission in favour of the employer and to
those who are permitted to go on scholarship abroad until the date of their
return. The employer shall no more pay the contributions for such workers
with effect from the beginning of the month immediately following the date of
their travel, but he shall resume payment of contributions with effect from the
beginning of the month of their return to the Kingdom.

2. The following workers shall be excepted from the application of the

provisions of the preceding paragraph:

a. The crews of the Saudi aircrafts : They shall continue to be covered under
the Occupational Hazards Branch during their work on board of the aircrafts
or during their trip from the airport to their dwelling or vice versa in the
countries abroad to which such flights reach.

b. The crews of the Saudi land and sea means of transportation: They shall
continue to be covered under the Occupational Hazards Branch during the
international trips abroad in accordance with such controls as may be set by
the Governor.

ARTICLE (28)

The rectification of the contributory wages taken as a basis for the payment of
contributions to the Organization may not be considered, unless the
application for rectification is submitted during the insurance year in which
the contribution has been paid or during the first three months of the
subsequent year at the most. In exception of this provision, the Governor may
consider the amendment of such wages in case the Organization discovers that
the employer has not fixed the contributory wages in the legal way.

In all cases, the contributory wage may not be rectified after the insured
parson sustains an employment injury.

ARTICLE (29)

Where it is discovered that a worker of the excepted categories provided for in

paragraph (3) of Article (2) of these Regulations has been registered or a non-
Saudi worker has been insured under the Annuities Branch thereby violating
the provisions of the Social Insurance Law, or that the registration has
involved any violation, the relevant period of contribution so registered shall
be annulled and the amount of contributions shall be refunded and the
membership for such period shall be considered as non-existing, with due
regard to the provisions of Article (64) of these Regulations (1).

ARTICLE (30)

1. The fines for delay provided for in paragraph (5) of Article (19) of the Law
shall no more be raised once they represent 100% of the contributions on
which payment of such fines are payable.

2. The Governor may exempt the employer who is cooperative with the
Organization from all fines for delay for justifiable reasons if the period of
delay is not more than ten days.

3. Without prejudice to the provisions of the preceding two paragraphs, the

Governor may, at his own judgment, exempt the cooperative employer from
payment of the fines for delay to the extent of 50% thereof and an exemption
at a higher rate shall be subject to a decision to be issued by the Board of
Directors on the recommendation of the Governor.

ARTICLE (31)

Without prejudice to the provisions of Article (62) of the Law and Article (15)
of the Regulations, where it is established that the employer has deducted the
contributions from the wages of his workers and failed to pay them to the
Organization, he shall be liable to pay them in addition to his lawfully
prescribed share and to register the workers whose wages have been subject to
deductions so long as they satisfy the conditions for coverage under the
Scheme. However, where it is established that workers from whose wages
contributions have been deducted do not meet the coverage conditions, the
employer shall be notified of the non-acceptance of their registration and
requested to repay the workers their wage deductions.
CHAPTER IV

PROCEDURES FOR COLLECTION OF CONTRIBUTIONS

ARTICLE (32)

Contributions, fines and other amounts due to the Organization shall be paid to
the Organization by cheques payable at accredited banks operating within the
jurisdiction of the appropriate office of the Organization, or by such other
means as may be determined by the Governor. The payment cheque or
voucher shall be associated with the forms provided for in Article (3) of these
Regulations and such other forms as may be determined by the Organization.

ARTICLE (33)

1. Without prejudice to the provisions of paragraph (3) of Article (45) of these

Regulations, contributions shall be paid within the first fifteen days of the
month immediately following the month for which such contributions are due.

2. Without prejudice to the provisions of Article (32) of these Regulations, the

date of payment shall be deemed to be:

- the date of cash payment to the office of the Organization;

- the date of delivery of the payment cheque to the office of the Organization
(in case of direct delivery);

- the date of the registered envelope or packet containing the payment cheque
if sent by post. However, where such date is unclear, the employer shall be
deemed to have paid the contributions five days earlier than the date on which
the said envelope or packet is received, unless the cheque is post-dated in
which case the date of payment of contributions shall be deemed to be the date
of the cheque;

- the date on which a deposit is made at the bank in favour of the Organization
or at such another places as may be specified by the Governor; or

- if the payment means approved by the Organization other than the foregoing
is adopted, the Governor shall determine the method of establishing the
relevant date of payment.

3. Nevertheless, if any of the last five days of the payment time-limit happens
to be an official holiday, the due date for payment of contributions shall be
extended to an equivalent number of days up to a maximum of five days.

ARTICLE (34)
Failure to submit the forms within the relevant prescribed time limits shall be
considered as one of the cases that permits the Organization to impose the
penalties provided for in Article (62) of the Law.

ARTICLE (35)

The Organization shall furnish the employer with a periodical statement of

account showing the total contributions due from him according to the
information submitted by him and the total amount paid by him during the
period covered by the said statement of account, without prejudice to the right
of the Organization to claim any contributions or other amounts falling due in
consequence of any data or information that was not available to the
Organization at the time of preparing the statement of account.

ARTICLE (36)

1. Amounts due to the Organization shall be deemed to be payable

immediately they become due under the provisions of the Law, and the
employer shall pay such amounts plus the fines for delay due for the period of
delay up to the actual payment thereof in accordance with the provisions of
paragraph (5) of Article 19 of the Law and Article (30) of these Regulations,
otherwise the Organization may, by the Governor's approval, take the
measures for issuance of a court order for attachment and compulsory
execution on the funds of the employer after giving him a notice to this effect
and a grace period of fifteen days for the payment of contributions and fines
for delay. The Organization shall thereafter, as it deems appropriate, effect
such measures, if such payments are not made within the said time limit or
otherwise give him such further grace period as it may determine in the light
of the employer's circumstances and readiness to respond to the provisions of
the Law.

ARTICLE (37)

1. With due regard to the provisions of paragraph (3) of Article (63) of these
Regulations the employer's appeal shall not interrupt the grace period he is
given for payment under paragraph (5) of Article (19) of the Law. In the event
that he wishes to suspend application of the fines for delay, he shall pay on
account all amounts claimed. If his appeal is accepted, such payments shall be
refunded to him and if it is not accepted, he shall be deemed to have paid his
dues within the limits of the payment he has already made.

2. The measures for attachments and compulsory execution shall be taken

through the official authorities after obtaining a court order for compulsory
execution on funds owned by or due to the employer from any government or
non-government agency, or individual.

ARTICLE (38)
Without prejudice to the provisions of paragraph (6) of Article (62) of the
Law, neither contributions due to the Organization nor fines for delay shall be
waived by lapse of time for any reason whatsoever.

ARTICLE (39)

1. The amounts due to the Organization shall not be forfeited by the death of
employer; and his heirs shall be jointly liable to pay such amounts, each within
the limits of his inherited share.

2. Nor shall such amounts, be forfeited by dissolution, liquidation or merger of

the establishment with another establishment, or by division or by ownership
transfer by will, sale or relinquishment or by conversion to another legal form
or by any other action. Both the old and the new employers shall be jointly
liable to pay all the amounts falling due to the Organization before any of the
aforementioned actions takes place; but any amounts falling due thereafter
shall solely be payable by the new employer.

ARTICLE (40)

1. The Organization may, when necessary, accept payment of the amounts due
from the employer by installments over such period as may be determined by
the Governor, provided always that either:

(a) the amounts due to the Organization are secured against the employer's
fixed assets, being sufficient to cover the said amounts, and the employer shall
be precluded from disposing of such assets by sale or any other means
whereby ownership may be transferred before the said amounts are paid in
full, unless the Organization gives its prior approval, or

(b) the employer provides an unconditional guarantee from an accredited bank

valid for the whole period of payment by installments.

2. The Governor may exempt the employer from the condition for providing
the securities referred to above.

ARTICLE (41)

1. For the purposes of determining the amount to be paid by installment,

payment shall include:

(a) the contributions due from the employer not paid by him as of the date of
issue of the decision for installments;

(b) the fine for delay due in respect of the contributions not paid as of the date
of issue of the said decision; and

(c) the fines for delay in payment of each installment until it is paid in full,
provided that the total amount of such fines plus the fine provided for in the
preceding paragraph (b) shall not exceed 100% of the amount of contributions
provided for in paragraph (a) above.

2. The Governor may exempt from payment of fines imposed on installments

and may also exempt from payment of all or part of such fines as may be
exempted by virtue of the provisions of Article (30) of these Regulations,
without prejudice to the Organization's right to cancel the decision for
installment in the cases provided for in the next Article (42). The exemption
from all or part of fines for delay is pending payment of all installments, and a
provision to this effect shall be set out in the decision for installment.

ARTICLE (42)

The issue of a decision to accept payment by installments shall not prejudice

the right of the employer to settle the amounts due from him in one payment
or to pay the remaining installments before the relevant due times. The
Organization may cancel the decision for installment if:

a. the Organization considers that the reasons justifying the decision have
ceased to exist; or

b. the employer fails to pay the due amounts in the due times; or

c. the employer fails to pay new monthly contributions in the due times; or

d. the establishment undergoes such a change as may expose the Organization

to loss of the amounts due, for example:

- bankruptcy;

- liquidation or discontinuation of activity;

- emigration or permanent departure from the country; or

- enforced sale of the employer's assets which is effected at the request of any
creditor, whether such enforcement is administrative or judical; or

- the employer's death, in case of private establishment.

The said cancellation shall be effected by a decision to be issued by the

Governor, and all amounts then due to the Organization shall consequently be
payable within one month from the date of notifying the employer of the said
cancellation decision. In case payment is not made within the said time limit,
the Organization shall have the right to claim the value of the guarantee or to
take measures to secure compliance by administrative seizure, with due regard
to the provisions of Article (36) of these Regulations.
CHAPTER V

PROVISIONS CONCERNING VOLUNTARILY COVERED PERSONS

ARTICLE (43)
The law shall apply to those who wish to have voluntary coverage by virtue of
the provisions of paragraph (4) of Article (4) of the Law in accordance with
the following rules and procedures:

1. Submission of the following documents:

a. Application for contribution on Form 7/Insurance prepared for this purpose.

b. Document showing his engagement in one of the activities provided for in

paragraph (4) of Article (4) of the Law, provided that such document shall be
issued by the appropriate authority, or a certificate issued by the Saudi
Consulate in the country of residence of the Saudi insured person .

c. Civil status identification card or family register.

2. With due regard to the provisions of paragraph (2) of Article (44) of these
Regulations, the voluntarily covered person shall select from the attached
Schedule No. (1) the income category he wishes to be taken as a basis for his
contribution, and his coverage shall take effect on and from the beginning of
the month immediately following the date of completion of the required
documents.

ARTICLE (44)

Without prejudice to the provisions of paragraph (1) of Article (45) of these

Regulations, any insured person whose compulsory coverage under the
Annuities Branch is discontinued may submit to the appropriate office an
application expressing his desire to continue his voluntary coverage under the
Scheme in accordance with the provisions of Article (8) of the Law for the
purpose of completing the contribution period qualifying for entitlement to
old-age pension or increasing his contribution period for improving his
pension, notwithstanding that his discontinuation of coverage may have taken
place prior to the implementation of these Regulations, subject to the
following rules and procedures:

1. a. The applicant for voluntary coverage may not request to repay the
compensation he has already recived except in the cases provided for in
paragraph (1) of Article (14) of the Annuities Branch Benefits Regulations.

b. For the purposes of accepting the application for coverage, the following
conditions shall be satisfied :

1. The application shall be submitted to the appropriate office on Form

7/Insurance prepared for this purpose .
2. The application shall be submitted within five years from the date of putting
these Regulations into effect for the insured person whose compulsory
contribution period has ended before the said date and within five years from
the ending date of the contribution period if it has ended after these
Regulations are put into effect (1).

2. The contribution shall be based on the income category elected by the

contributor from among the income categories contained in the Schedule No.
(1) attached hereto, provided that it shall not initially exceed the last
contributory wage he was receiving during his compulsory contribution by
more than 10%. If his previous wage plus the said percentage fall between
two categories, he may chose the higher one. Nevertheless, he may, upon his
initial voluntary contribution, elect any category higher than that one, in
which case the benefits he will eventually be entitled to shall be computed on
the grounds that his compulsory contribution period is considered as an
independent period as provided for in the Annuities Branch Benefits
Regulations.

3. The contribution shall start with effect from the first day of the month
immediately following the date of completing the required formalities and
documents.

4. The one to whom the provisions of Article (8) of the Law are applicable and
has missed the chance of applying for voluntary contribution within the time
limit provided for in paragraph ( 1.b.2 ) of this Article, may, at any time, apply
for voluntary contribution in accordance with the provisons of Article (43) of
these Regulations, so long as he fulfills the required conditions, with due
regard to the provisions of paragraph (2) of this Article .

ARTICLE (45)

The following provisions shall apply to all those who are voluntarily covered
in accordance with the provisions of paragraph (4) of Article (4) and Article
(8) of the Law:

1. With due regard to the provisions of Articles (43) and (44) of these
Regulations, the applicant for voluntary coverage shall meet the following
requirements in order to accept his application:

a. He shall, at the time of submission of his application for membership, be at

age eighteen or over but under the age provided for in paragraph (2) of
Article (4) of the Law.

b. He shall successfully complete the medical examination determined by the

Governor.

2. The contribution year in respect of the voluntarily covered person shall be

the Hijrah calendar year which starts at the beginning of the month of
Moharram and ends at the end of the month of Zul-Hijjah, or the Gregorian
calendar year which starts at the beginning of the month of January and ends
at the end of the month of December as opted by the insured person who may
not change his option.

3. The insured person or the one who acts on his behalf shall pay the
contribution due for each month in advance within fifteen days of each month.
The Governor may accept advance payment of contributions for any period as
he may deem appropriate and in accordance with such procedures,
arrangements and conditions as he may determine for individual or collective
cases, without prejudice to the requirement of expiration of the period for
which contributions have been paid until the commencement of the lawfully
due date of payment of benefits, as if the contribution has been made on
monthly basis.

4. The insured person may designate the name or names and specimen
signatures of the representatives who act on his behalf for the purposes of
application of the provisions of the Law and these Regulations particularly for
submission of documents, completion of forms, and reporting the events
required to qualify to benefits. Any actions taken through any of such
representatives shall be deemed as binding to the insured person. The insured
may replace such representatives any time after giving the Organization a
notice to this effect. If he does not designate any representative to act on his
behalf to do so, he shall be liable to deal with the Organization by himself.

5. The insured person may apply for changing his current contributory income
category to the immediately higher one, provided that he submits his
application for the change begore the beginning of the insurance year. The
same shall apply to the one who submits his application within the first fifteen
days of the first month of the said year. If he fails to do so within time limit,
the change shall take effect in accordance with the new category from the
beginning of the insurance year immediately following the date of submission
of the application .

6. The insured person may apply for changing his current contributory income
category to a lower one, provided that he submits his application before the
beginning of the insurance year. The same shall apply to the one who submits
his application within the first fifteen days of the first month of the said year.
If he fails to do so within this time limit, the change shall take effect in
accordance with the new category from the beginning of the insurance year
immediately following the date of submission of the application. In this case,
the insured person shall be treated the same as the complusorily covered
person whose contributory wage is reduced in accordance with the provisions
of the Annuities Branch Benefits Regulations.

7. The insured’s membership shall, upon his request, be discontinued with

effect from the last month for which he has paid or will pay contributions and
shall also be considered as discontinued, in the event of his actual suspension
of payment of contributions, with effect from the end of the last month for
which he has paid contributions.
8. If an activity on which basis a voluntarily covered person has been
registered is discontinued, his contribution shall be terminated at the end of the
month in which his activity is discontinued or at the end of the last month for
which contributions have been paid if his activity has already been
discontiuned. However, if it is discovered that he has continued payment of
contributions beyond the date of discontinuation of the activity, the
contributions paid for the months following the said date shall be refunded to
him .

9. The insured person whose coverage is suspended may resume coverage for
the purpose of completing the period qualifying for pension or increasing such
period, in which case he may pay the contributions and fines for delay due for
the suspended period or otherwise forfeit such period. Coverage shall be
resumed and the contributions payable for the suspended period shall be
computed on the basis of his last contributory income category, and a fresh
application shall be submitted by using the form prepared for this purpose.

10. Failure to pay contributions for any reason shall not have effect on the
lawful time of entitlement to benefits.

11. If the applicant for voluntary coverage employs workers, his application
for voluntary coverage shall not be accepted unless he registers his
establishment and all his workers and pays the contributions due in respect of
such workers so long as they fulfill the conditions of compulsory coverage
under the Scheme as required by the phases of application.

12. The voluntarily covered person shall be subject to all provisions of these
Regulations that have no contradiction with his status as voluntary coverage,
in accordance with such details and procedures as may be set by the Governor.
CHAPTE VI

CONTROL OF APPLICATION OF THE LAW

SECTION 1
GENERAL OBJECTIVES

ARTICLE (46)

1. The Organization shall take such measures as may be necessary for ensuring the
proper application of the provisions of the Law and its implementing regulations,
in particular:
a. To follow up the employers and assist them to properly apply the provisions of
the Law and its regulations to ensure, in particular, that they contribute for all their
workers on the basis of their actual wages and that they discharge their obligations
towards the Organization in accordance with the provisions of the Law and the
decisions of implementation thereof, and this includes the continuous survey of
establishments and verification of the registration of such establishments with the
offices of the Organization.
b. To follow up the employers who fail to pay the contributions or to submit the
forms after the necessary actions are taken by the competent agencies of the
Organization.
c. To explain the provisions of the Law and its implementing regulations to the
registered employers to avoid application errors and to ensure speedy discovery
of committed violations.
d. To ensure that each establishment is maintaining regular records and files to
serve the objectives of insurance in accordance with the decisions implementing
the Law.
e. To verify the employer's violations of the provisions of the Law and the
decisions issued in implementation thereof and to investigate such violations and
the workers' complaints concerning the employer's failure to register the workers
or his payment of contributions on the basis of wages lower than the actual ones.
f. To coordinate between the appropriate organs of the Organization and those of
the state bodies for the purpose of proper application of the Law, to exchange
information pertaining to the new establishments to follow up those with late or
discontinued payment, and to check whether the employer is abiding by the
occupational health and safety instructions issued by the appropriate authorities.
2. The Governor shall, by decision to be issued by him, specify the departments
and sections assigned to achieve the objectives and tasks set under the preceding
paragraphs for each the head office and offices of the Organization as well as their
individual functions and work procedures.

SECTION 2

THE INSPECTORS AND THEIR AUTHORITIES

ARTICLE (47)
1. The social insurance inspectors shall be charged with the achievement of the
objectives provided for in Article (46) of these Regulations in accordance with
such organization, plans and instructions as may be approved by the Organization.
2. The social insurance inspectors shall be elected from among the Organization
employees who have been employed for not less than two years in the
departments of the Head Office or the inspection work-related sections of the
offices to the extent that renders them thoroughly acknowledgeable of the Law
and its Regulations. Due regard shall be given to the following in the selection of
inspectors:
a. They should be exclusively impartial.
b. They should not have any direct interest in the establishments being inspected
by them.
c. They should have showed efficiency in the performance of their duties at the
Organization.
3. The inspection works shall be entrusted to a selected inspector by temporary
assignment for two months after which a comprehensive report shall be prepared
on him. This report shall be used for evaluation of his personal characteristics,
behaviour, capabilities and aptitude for the proper performance of the inspector's
assigned tasks, prior to his permanent placement in the position of inspector.
4. Prior to starting performance of their tasks, the insurance inspectors and their
superiors shall take before the Governor the following oath:
" I swear by God the Almighty that I will carry out my post duties with honesty
and dedication and will not disclose the secrets which come to my knowledge in
the course of performance of my duties to any one other than the competent
agencies of the Organization. "
5. The Organization shall furnish each inspector with an identification card to
evidence his capacity and authorities, which card shall show his photograph, the
Governor's signature, the official seal, and the period of its validity as determined
by the Governor. The inspector shall return such card on quitting his job or being
transferred to do a job other than inspection. The inspector shall not be permitted
to use such card on assignments other than the official inspection ones. In case
an inspector loses his card, he shall be provided with a new one after it is
ascertained that he is free from the responsibility for the loss thereof.
6. The inspector may not be transferred to do another job after taking the oath
except for justifying reasons and by the Governor's approval.

ARTICLE (48)

The social insurance inspectors shall exercise the following powers:

1. To enter the premises of the establishment during the working hours for the
purpose of carrying out their assignments.
2. To examine the records, papers and files or any other documents kept by the
employer in respect of the application of the Law and its Regulations to the
workers and to obtain copies of such documents if required.
3. To question the employer, his representative or his workers on any subject
relating to his mission and may write a report thereon, if necessary.
4. With due regard to the provisions of paragraph (2) of Article 60 of the Law, the
inspector may not request the assistance of any of the appropriate authorities of
the Government without the Governor's approval.

ARTICLE (49)
In doing their jobs, the inspectors shall observe the following:
1. To be cautious and honest in choosing the information and statements they
include in their reports concerning the establishments they have inspected. In
particular, they shall base their observations on what they themselves hear or
witness. They shall refrain completely from making any comments on matters
which they are not adequately acquainted with in order to maintain the confidence
which has been placed in them.
2. To carry, upon performing their duties, the identification card which evidences
their capacities and to present it when needed.
3. To meet the employer or his representative before entry into the business
premises to perform inspection, unless they feel that the public interest
necessitates that they proceed performing their inspection assignment immediately
upon their arrival. In no way, a prior notification of an inspector's visit be made
unless such prior notification is deemed to meet the work interest.
4. To give full care to the guidance and advisory aspect in their relationship with
the employers and provide every possible aid with a view to assist them in
applying the Law and implemental measures thereof in the manner contemplated
by the Organization and to overcome any difficulties in this respect.
5. To choose, for the inspection visits, the convenient time, subject to the nature of
activity of the establishment.
SECTION 3
INSPECTION RULES AND PROCEDURES - REPORTS

ARTICLE (50)

The inspection agencies shall observe the following:

1. The inspection visits plans shall include a field inspection of every covered
establishment at least once every periodical interval determined by the Governor,
or upon applying by the establishment for a certificate from the Organization if a
certain period, to be determined by the Governor, has elapsed since the last
inspection was performed, subject to the purpose of the required certificate.
2. The periodical inspection shall cover all aspects concerning the application of
the Law and these Regulations and, in particular, the verification of registration of
all workers with their actual wages.
3. The competent superior at each office shall organize the inspector's visits to the
establishments during the official working hours in accordance with programs
certified by the office director and prepared on special form approved by the
Governor.

ARTICLE (51)

1. Each inspector shall prepare on the relevant form approved by the Governor a
full report on the results of each inspection he conducts in respect of any
establishment he visits for the purpose of making periodical inspection or ensuring
compliance. The report shall be submitted to his immediate superior for review
and comments. The report shall, in particular, include the following information.
a. Administrative data which includes:
Inspector's name, date and time of inspector's visit, and names of the persons he
has met.
b. Identification of the establishment he has visited, which includes:
 - Name, legal form, type of activity and registration number of the
establishment.
- Its address.
- Name of the proprietor or responsible manager.
- Nature of work.
- Number of Saudi and foreign workers in employment.
c. Summary of the results of the visit.
d. Recommendations.
e. Such other information as the Governor may recommend to be included in the
report.
2. The Office Director may accept the inspection visit made by an inspector
although it has not been included in the already approved inspection visit
programme, provided that the inspector shall have shown evidence of the visit
event by means of a report signed by him and the establishment proprietor or
responsible manager.

ARTICLE (52)

1. Where an inspector discovers that an employer has committed violations in

discharging his obligations under the provisions of the Law and these Regulations,
he shall clarify verbally to the employer or his representative the nature of the
violation, the legal judgment in respect of the violation, and the procedures and
the grace period for eliminating the violation and shall confirm the same by a
letter to be sent to the employer by official mail. If the employer fails to respond
within the grace period, he shall be given an official warning duly certified by the
Office Director, and such warning shall contain a statement of the violations and
the procedures which shall be taken to eliminate the violations and shall indicate
an adequate period determined by the Office Director for the elimination of each
violation according to its nature, provided that it shall not exceed one month. The
Office Director may extend the said grace period for further one month
maximum, if he discovers that the employer is ready to respond. He may, in lieu
of serving the said warning letter, provide the employer with a copy of the
inspector's report referred to in Article (51) if it suffices the purpose, with the
grace period granted to him for elimination of the violation specified in the report.
The granting of the grace period specified in the warning shall not prejudice the
Governor's right to apply the penalties imposed by the Law without waiting until
the expiry of the grace period for such reasons as may be determined by the
Governor if this would maintain the entitlements of the Organization.
2. With due regard to the provisions of Article (53) of these Regulations, if the
employer fails to eliminate the violation within the prescribed grace period in
accordance with the provisions of the preceding paragraph, the inspector shall
draw a report of contraventions in triplicate of which a copy shall be sent by
official mail to the employer, provided that the report shall contain the basic
information, in particular:
a. the position of the violator, being either the employer or the person-in-charge of
the conduct of his activities;
b. statement of violations clearly;
c. the number of workers involved in contraventions for which penalties may be
multiplied by the number of workers in respect of whom such contraventions have
been committed; and
d. statement of previous contraventions by the employer in relation to which the
fine may be doubled.

ARTICLE (53)

1. In case of resorting to drawing a report of contraventions, such report shall be

drawn up in the workplace unless this cannot be done for exceptional reasons.
The inspector shall ask the employer about the reasons for committing each of the
contraventions he has witnessed, and he shall record in the report a summary of
his answer. The report shall be signed by both the inspector and the employer or
manager-in-charge. In the event of refusal to sign, a reference shall be made to
this effect in the report.
2. The report of contraventions shall be submitted to the Office Director who
shall, in turn, submit the report (or a copy thereof if the original has been sent to
the employer) along with his recommendations to the competent department at the
Head Office for presentation, if necessary, to the Governor for issuing his
instructions.
3. The drawn report of contraventions submitted to the competent department at
the Head Office shall enclose the following documents, as necessary:
a. Copy of the report referred to in paragraph (1) of Article (51) of these
Regulations duly certified by the Office Director with an indication of his
approval of the drawing of the report of contraventions.
b. Copy of the warning served to the employer and bearing the signature of the
employer or his representative as acknowledgment of receipt of the same or
showing the Office outgoing mail reference number and date.
c. Copy of the survey statement prepared by the inspector and signed by both the
inspector and the employer or indicating his refusal to sign. Such statement shall
contain complete particulars on workers, their numbers and the discrepancies in
wages or dates of entry in employment, if any.
d. Copy of the claim for payment of amounts due to the Organization as a result of
the contents of survey statement on the date of dispatch of the claim which shall
have been dispatched at least fifteen days before the final inspection is performed
on the employer's establishment. The copy of the claim shall show evidence of
receipt of the same by the employer or the number and date of dispatch of the
same from the Office.
e. List of state bodies, semi-state bodies and joint stock companies which the
employer is dealing with particularly in the contracting field.
f. A mention of the penalty alleviating or extenuating circumstances, as
appropriate.
g. The employer's establishment size and capabilities for coping with the
provisions of the Law and the employer's readiness for response.
4. The Governor shall make such forms as may be required for the implementation
of the provisions of this Article.

ARTICLE (54)
The Director of the appropriate Office shall submit to the Head Office of the
Organization a report on the following contraventions with a view to take the
necessary action if the office fails to have them remedied or if the remedy of such
contraventions requires approval from another competent authority:

1. If the employer refuses to abide by the instructions issued by the appropriate

authority in relation to occupational safety and health, or if the insurance inspector
fails to verify the same.

2. If the employer insists to refrain from registration of his workers, or a dispute

arises in respect of the work relationship, period of service, or wage earned by the
worker.

ARTICLE (55)

For the purposes of application of the provisions of paragraph (4) of Article (62)
of the Law, the Governor shall be empowered to form one committee or more for
investigation in the violations provided for in the said Article and to set the
committee's work procedures.
CHAPTER VII
RULES FOR RECONCILIATION OF STATUS OF ESTABLISHMENTS OF WHICH ACTIVITY
IS PERMANENTLY DISCONTINUED

ARTICLE (56)

1. The provisions of this chapter shall apply to establishments of which activity is

permanently discontinued for any of the following reasons:

a. Death of proprietor of private establishment.

b. Announcement of bankruptcy or issuance of verdict of financial strait of the

proprietor.

c. The termination of establishment and entry into liquidation or merger with others
whether under the Companies Act, agreement, articles of association, judicial verdict or
decision by an appropriate administrative authority.

d. Actual quitting by the proprietor of his activity for any reason.

The discontinuity of the activity of an establishment shall be established by inspection

report and findings, or presentation of a certificate for writing off the establishment
from the appropriate commercial register or such other document as may confirm the
discontinuation of activity, as applicable.

For the purposes of application of the provisions of this Chapter, the term
"establishment" shall mean the head office and branches thereof owned by the
employer within the Kingdom of Saudi Arabia notwithstanding that they may all be
involved in a single or several activities, without prejudice to the provisions of
paragraph (2) of Article (6) of these Regulations.

2. Any case where an employer's activity is discontinued shall be presented to the

appropriate department at the Head Office supported by the relevant documents and
inspection reports whereby the discontinuity of activity is established; and in the light of
these, the case shall be presented to the Governor to determine the date on which the
activity shall be deemed to be discontinued as to the employer's relationship with Social
Insurance.

3. The Governor, shall determine the data to be available in the inspection report
establishing the discontinuity of activity.

ARTICLE (57)

The establishments of which activities are discontinued shall be dealt with

according to the following rules:

1. The fines for delay shall cease to apply on and from the date determined for
discontinuation of activity. The Governor may exempt the employers from
payment of all or part of the fines for delay due from the establishment of
which activity is discontinued for the period preceding the said date, on the
basis of his own judgment on the reasons for delay in payment of
contributions.

2. Contributions in respect of insured workers shall be payable as of the date

determined for discontinuation of activity, and such date shall be deemed to be
the date determined for discontinuation of their coverage at this establishment.
As an exception to this provision, contributions for the workers whose service
continues during the process of liquidation shall be payable until the date of
completion of the process of liquidation.

ARTICLE (58)

1. The Organization shall take the necessary measures to collect its

entitlements payable by the establishments of which activities have
discontinued including the follow-up of collection of entitlements payable by
the foreign establishments which are known to have offices outside the
Kingdom, with due regard to the provisions of Article (39) of these
Regulations.

2. The Organization shall notify the employer, whose activity is discontinued,

of such amounts as may be payable to him by the Organization.

3. As an exception to the provisions of Article 38 of these Regulations, the

entitlements payable to the Organization by the establishments of which
activities have discontinued or otherwise payable by the Organization to such
establishments, shall be dealt with according to the following rules:

a. If the discontinuation of activity is limited to one branch of the employer's

business and it is discovered that he has other branches or activities registered
with the Organization, the debit and credit balances shall be transferred to the
office where the employer's account and activity are still operating within the
jurisdiction of such office.

b. If the amount payable to the Organization or to the employer is one

thousand Saudi Riyals or less, no claim may be made after the lapse of one
year from the date of issue of the Governor's decision providing for the
discontinuity of activity.

c. If the amount payable to the Organization or to the employer is more than

one thousand Saudi Riyals, no claim may be made after the lapse of seven
years from the date of issue of the Governor's decision providing for the
discontinuity of activity.

d. The employer's account shall be closed after the lapse of the periods
prescribed in the preceding two paragraphs (b) and (c) by a Governor's
decision, in which case the amounts due to the Organization shall be
considered as dead debts, after taking the adequate measures for collection of
the amounts due to the Organization or payment of the amounts due to the
employer, as applicable.

e. The Governor may extend the foregoing time limits if he discovers that
certain measures have not been taken for the collection of the amounts due to
the Organization or for payment of the amounts due to the employer.
CHAPTER VIII
PROCEDURES FOR SUBMISSION AND CONSIDERATION OF APPEALS

ARTICLE (59)

1. The employers or insured persons or the ones who act for them shall have the right
to appeal against any decision issued by any agency of the Organization in connection
with:

a. the coverage or non-coverage under the Law; and

b. the determination of the contributory wage or the amount of contribution or fines

for delay.

The decision appealed against in such connections ought not to be issued in a

particular format, it may also be negative in that the appellant requests the issue of a
decision where none has been given.

2. The Annuities Branch Benefits Regulations and the Occupational Hazards Branch
Benefits Regulations shall provide for the submission of appeals in connection with
decisions issued regarding entitlement to or computation of benefits.

ARTICLE (60)

1. The appellant may submit a petition to the same agency which issued the decision
appealed against for reconsideration, and such petition shall indicate the petitioner's
reasons and requests, provided that he shall submit his petition within one month from
the date on which he is notified of the relevant decision. Also, he may, in lieu thereof,
submit his appeal to the immediately higher level, provided that his appeal is
submitted within two months from the date of issue of the decision appealed against.

2. If the petitioner is notified of the rejection of his petition or in case of failure to

make a decision on the petition within fifteen days from the date of submission of his
petition, he may present his first appeal, provided that he shall do so within two
months from the date on which he is notified of the rejection of the petition or the
date on which the fifteen days prescribed for making a decision on the petition has
elapsed without giving an answer, as the case may be.

ARTICLE (61)

An appeal shall be submitted to the agency immediately above that which issued or
refused to issue the decision, as shown in detail below:

1. To the Governor of the Organization as regards decision made by the Office

Director.
2. To the Board of Directors as regards decision made by the Governor, provided that
the appeal shall, in this case, be submitted to the Board of Directors within thirty days
from the date on which he is notified of the Governor's decision.

3. The Governor may, for justifiable reasons, accept to reconsider an appeal submitted
after the lapse of the prescribed time limit.

4. An appellant whose appeal has not been accepted for objective reasons after going
through the aforementioned sequence of levels referred to in the preceding paragraphs
may submit a complaint to the authority concerned with the settlement of labour
disputes within 30 days from the date of issue of the decision rejecting his appeal.

ARTICLE (62)

The appellant, or whoever acts on his behalf, may submit his appeal to the competent
authority in person or by registered mail. If the appeal is submitted by a
representative of the employer or insured person he shall prove the capacity in which
he is acting, and the appeal so submitted must contain the following particulars:

1. Full name and surname of the appellant.

2. Capacity, occupation and workplace of the appellant .

3. His address and telephone number.

4. The agency which issued the decision appealed against and the particulars thereof;
and a copy of the decision shall be attached.

5. Reasons for the appeal in detail specifying the claims and justifications of the
appellant.

6. Signature of the appellant; but if he is unable to sign, he shall make the impression
of his left thumb on the submitted appeal before the official concerned with the
registration of appeals.

The Organization may prepare a form for appeals to be used by appellants upon
submission of their appeals in accordance with the provisions of this Chapter.

ARTICLE (63)

1. The Governor may form at the Head Office of the Organization a committee for the
examination of appeals presented to him. This committee may request such data or
information as it may need and deem necessary for the examination of the appeals and
prepare a report on each appeal within one month from the date on which the relevant
information is completed, which report shall be submitted to the Governor for
deciding on the appeal.

2. The committee may summon the appellant or his representative to appear before it
for discussion and may recommend putting away the appeal if, without valid reason,
the appellant or his representative fails to appear at the appointed time.
3. If the appeal fulfills the formal requirements, the measures for administrative
seizure provided for in these Regulations shall be suspended.

4. A Governor's decision shall be issued closing the appeal, or canceling or modifying

the decision appealed against, provided that in all cases the decision shall be
causative; and the appellant shall be furnished with a certified copy of the decision by
an official letter dispatched to him at the address specified in his appeal.
CHAPTER IX
TRANSITIONAL PROVISIONS

ARTICLE (64)

Without prejudice to the provisons of Article (29) of these Regulations, those registered
with Social Insurance shall be deemed to be properly registered if they have continued
payment of the required contributions for three or more years before 01/07/1423H,
notwithstanding that their registration might have involed any of the violations. This
exception shall not include the categories excepted from coverage under the Law or
registration of the non-Saudi worker with the Annuities Branch .

ARTICLE (65)

New contributory wages for all compulsory contributors shall be recorded in the first
month of the introduction of the Scheme (i.e. Moharram 1422 H - April 2001 G), and
such wages shall be fixed in accordance with the provisions of Article (16) and the
subsequent Articles of these Regulations. The Governor shall determine the method of
application of this provision.

SCHEDULE NO. (1)

THE CATEGORIES OF THE MONTHLY INCOME TAKEN AS A BASIS FOR THE

COMPUTATION OF THE CONTRIBUTION OF THE NON-WAGE- EARNING CONTRIBUTORS

Category No.Amount in RiyalsCategory No.Amount in Riyals

1 1,200 21 7,900
2 1,400 22 8,600
3 1,600 23 9,400
4 1,800 24 10,300
5 2,000 25 11,300
6 2,200 26 12,400
7 2,400 27 13,600
8 2,600 28 14,900
9 2,800 29 16,300
10 3,000 30 17,800
11 3,300 31 19,600
12 3,600 32 21,600
13 3,900 33 23,800
14 4,200 34 26,200
15 4,600 35 28,800
16 5,000 36 31,700
17 5,500 37 34,900
18 6,000 38 38,400
19 6,600 39 42,200
20 7,200 40 45,000
ANNUITIES BRANCH BENEFITS REGULATIONS
SECTION I
METHOD OF COMPUTATION OF CONTRIBUTION MONTHS
ARTICLE (1)
For the purposes of computation of the contribution months in application of the
provisions of Article (47) of the Law, the following rules shall be applicable:
1. A contribution month is every calendar month for which, pursuant to the provisions
of the Law and the Registration and Contribution Regulations, contribution is due to the
Organization on the basis of the full monthly contributory wage, regardless whether it is
based on the wage of the first month of the insurance year or on actual wages or on
such other method as adopted by the Organization for the purposes of determination
of the payable contributions.
2. The insured person treated on the basis of the actual wages method shall be treated
as follows in respect of the periods for which no full monthly wage has been received by
him and not included in the period calculated in his favour in accordance with the
preceding paragraph:
a. If he is a monthly-paid insured person, he shall be credited with one contribution
month for every 30 paid days.
b. If he is an hourly-paid insured person, he shall be credited with one contribution
month for each 240 paid hours.
c. If he is a daily-paid insured person, he shall be credited with one contribution month
for every 30 paid days.
d. In adding the contribution months as provided for in the preceding paragraphs, the
working days balance equivalent to or exceeding 13 (thirteen) days shall be considered
as a contribution month and the balance that is less than that shall be disregarded.
e. If the insured person’s period of contribution includes a period for which a daily
allowance for injury is payable, such period shall be included for the purposes of
computation of pension or compensation payable to him under the Annuities Branch
provisions, as if he has received full wages and paid the contributions due therefore.
3. Where contributions are paid according to Gregorian calendar, the differences in days
between the Gregorian and Hijrah years shall be added to the contribution period if this
enables the insured person to complete the period qualifying for pension. This shall
apply to cases of eligibility for pension provided for in paragraphs 1 (a), 1 (c), 1 (d),
and 1 (e) of Article (38) of the Law and to cases of disability and death, provided that
such added differences shall not be taken into account in the computation of the
pension.

ARTICLE (2)

1. The day on which an insured person leaves employment shall be reckoned as

contribution day.
2. For the purposes of application of the provisions of paragraphs (1.a), (1.c), (1.d) and
(1.e) of Articles (38) and the provisions of Articles (39) and (40) of the Law, the
incomplete month in which the worker leaves employment shall be reckoned as
complete contribution month, if such reckoning enables the insured person to complete
the period qualifying for pension, provided that such month shall not be taken into
account in the computation of the pension.
3. For the purposes of determination of the period qualifying for non-occupational
disability pension and heirs pension in the application of the provisions of paragraph (1)
of Article (39) and paragraph (1) of Article (40) of the Law, the contribution months
shall be considered as consecutive if they are related to periods of employment covered
under the Law and are not separated by a time interval.
4. In the application of the provisions of the preceding paragraph, the month in which
the insured person leaves employment shall not be considered a time separator if no
contribution is due for such month in respect of the insured person who pay
contributions on the basis of wages of the first month of the year. Likewise, the periods
of absence, leave without pay, or periods of suspension of the employment contract
shall not be considered as time separator if no contribution is due for such periods, in
respect of insured person who pay contributions on actual wage basis. Nor shall the
period separating between two contribution periods which is less than thirty days be
considered as time separator. However, the periods referred to in the foregoing cases
shall not be included in the period taken as a basis for the calculation of the pension.

ARTICLE (3)

For the purposes of application of the provisions of paragraph 3(e) of Article (38) of the
Law, if an insured person has worked for more than one employer at a time, and each
employer is liable to pay full contribution for each one month, the insured person, or his
eligible surviving family members, as applicable, shall be credited with one contribution
month for each one calendar month. In this case the total monthly wages due to the
insured person from the various employers during the last two contribution years shall
be taken as a basis for the computation of the pension, with due regard to the
application of the provisions of paragraph (2) of Article (19) and paragraph (3) of
Article (38) of the Law and Article (8) of the Annuities Branch Benefits Regulations.
The Governor may set forth such details and examples as may be required for the
implementation of this Article.
SECTION II

BENEFITS PAYABLE TO INSURED PERSONS

AND METHOD OF COMPUTATION THEREOF

ARTICLE (4)

1. For entitlement to retirement pension in all cases, in the application of the

provisions of Article 38(1) of the Law, the compulsorily covered person shall have
ceased to be engaged in any work subject to compulsory coverage and the voluntarily
covered person shall have ceased to be engaged in any work subject to voluntary or
compulsory coverage.
However, if the insured person who leaves employment at age sixty or over, re-enters
into employment with the same employer or at any of his branches or at his owned
establishments during one year from the date of leaving employment, this shall be
deemed as a waiver on both parties of the previously existing work relationship, in
which case the notification of termination of employment of such insured person already
submitted by the employer to the appropriate office shall be invalid and the interruption
period shall be considered as contribution period for which contributions shall be
payable, and the insured person shall repay the pension he has received therefore.
2. For the purposes of application of the provisions of paragraph 1(c) of Article (38) of
the Law, the female insured person who attains fifty five years of age or over shall
have the right to file a claim for payment of retirement pension if she has completed at
least 120 (one hundred twenty) contribution months.
3. In the application of the provisions of paragraph 1(d) of Article (38) of the Law, the
insured persons who are engaged in arduous or unhealthy occupations listed hereunder
may retire at age fifty five or over and receive retirement pension so long as each has
completed at least 120 contribution months:
a. The mining workers who work inside the mines.\
b. The quarry workers who work in the breaking, exploding and packing of rocks and
raw materials.
c. The workers who work in casting of metal such as iron and steel and do their job in
front of furnace with high temperature.
d. The divers whose regular work requires diving deep into the sea.
To benefit from the provisions of this Article, the insured person shall have continued
his actual engagement in the said works throughout the last five years of his
contribution period, and this shall be established by the inspection report approved by
the Office Director.
4. With due regard to the provisions of paragraph (1) of this Article, the pension due
under paragraphs 1(b), 1(c) and 1(d) of Article (38) of the Law shall be paid on the first
day of the month immediately following the date of filing the claim for payment of
pension if such claim is filed before attaining age sixty.

ARTICLE (5)

1. For the purposes of application of paragraph 1(e) of Article (38) of the Law, the
Organization shall pay the retirement pension to the family of the male or female
insured person who is sentenced for a term of imprisonment on temporary basis,
though he may be under sixty years of age, so long as he has completed the period
qualifying for entitlement to pension and satisfied the following conditions:
a. The insured person shall have been sentenced by virtue of a final judical order for a
term of imprisonment of not less than one year from the date of delivery of the
sentence order, and the arresting period preceding the date of delivery of the order
shall not be included therein.
b. The employer shall have notified the Organization of the termination of employment
of the insured person.
2. The right to the pension referred to in paragraph (1) of this Article shall commence
at the beginning of the month following that during which the sentence provided for in
paragraph 1(a) above is delivered and shall expire in either of the following times, as
applicable, with the next six months added thereto :
a. The end of the last day of the month in which the period of imprisonment prescribed
in the order expires.
b. The end of the last day of the month in which the imprisoned insured person is
released prior to the end of his term of sentence, in which case the appropriate office
shall coordinate with the prison administration to know the actual date of release of the
insured person.
3. The pension of the family members shall be paid to such person as may be
designated by the insured person to receive the pension on behalf of the family
members. Designation of such person shall be made by a statement of the insured
person duly approved by the administration of the prison in which he is detained. If
such designation is not made, the Organization may pay the pension to the person
designated by his eligible family members. If they do not designate anyone, the
pension shall be paid to the wife (or to the husband of the imprisoned female insured
person) or otherwise to the eldest member.
4. The retirement pension payable to an imprisoned insured person by virtue of the
provisions of paragraph 1(e) of Article (38) of the Law shall become final, if such
insured person attains 60 years of age in the course of his term of imprisonment. If,
prior to reaching that age, he dies or is afflicted with a non-occupational disability of the
kind provided for in Article (39) of the Law, his pension shall be re-computed, and he
shall be treated the same as the one who dies or is afflicted with a disability after he
leaves insurable employment prior to reaching age 60.
5. Where the imprisoned insured person is released prior to reaching 60 years of age
and the time limit prescribed in paragraph (2) of this Article has expired, he shall be
treated the same as any other insured person whose contribution period ends before
attaining age 60.
6. With due regard to the provisions of the preceding paragraphs, the pension payable
to the imprisoned insured person shall be subject to all the provisions of the Law and
these Regulations, particularly in relation to the conditions of continuity of entitlement
to pension.

ARTICLE (6)

In the application of the provisions of paragraph (2) of Article (38) of the Law, the
insured person who has completed 60 or more but less than 120 contribution months
and is no more engaged in any insurable activity and has filed a claim for payment of
his pension at age sixty or over, may claim to be credited for an additional period to the
extent required to qualify him for entitlement to pension, provided that the period to be
credited for shall not exceed five years, and that he shall pay the total contributions to
the Annuities Branch at the rate of 18% (eighteen percent) for each month of the
credited period computed on the basis of the average monthly contributory wage taken
as a basis for the computation of the pension. The insured person sall pay the said
amount of contributions either in one payment or by deducting it from the accumulated
pension due from the date of his retirement and paying the balance in monthly
installments at the rate of 25% (twenty five percent) of the payable monthly pension
until the whole due amount is settled. In the event of death of the insured person prior
to settlement of the whole amount, the Organization's title to the balance of the
installments shall be forfeited.

ARTICLE (7)

For the purposes of application of paragraph 3(a) of Article (38) of the Law, due regard
shall be given to the following :
a. The contribution period for which the pension is assessed shall mean the total
contribution months divided by 12 (twelve) months.
b. The contribution period completed with effect from the date of implementation of the
new Law shall be included in the computation of the pension at the rate of one fortieth
of the average monthly contributory wage in the last two years of his contribution
period.
c. The contribution period completed under the old Law shall be included in the
computation of the pension at the rate of one fiftieth of the said average provided for in
the paragraph (b), above. There shall be added to the pension payable for such period
the family allowance provided for in paragraph (3) of Article (38) of the old Law in
accordance with the relevant provisions applicable thereto.
d. In exception of the provisions of paragraph (c) above, the said family allowance
shall not be payable in respect of those to whom the provisions of the said paragraph
apply, if the total amount of the pension and the allowance is equivalent to or less than
the minimum prescribed for the retirement pension or non-occupational disability
pension, in which case the pension shall be raised to the said minimum and the
allowance shall be cancelled. However, where the said total amount exceeds the
prescribed minimum, the pensioner shall continue to receive this total without having
the pension raised to the prescribed minimum. In case, the amount of the allowance
has been revised as a result of a change in the number of the dependants which
revision renders the total amount to be equivalent to or less than the prescribed
minimum, the pension shall be raised to such minimum and the allowance shall be
cancelled. In the event of the death of the pensioner, the pension distributable among
the family members shall not be less than the prescribed minimum.

ARTICLE (8)

1. For the purposes of application of paragraph 3(b) of Article (38) of the Law, due
regard shall be given to the following:
a. The average monthly wage on which basis the pension is computed shall be one
twenty fourth of the total contributory wages on the basis of which the contributions
due have been paid during the last twenty four contribution months, with due regard to
the provisions of the next paragraph.
b. The average wage taken as a basis for the computation of the pension shall not
exceed 150% (one fifty percent) of the contributory wage at the beginning of the last
five years of the contribution period, save for the insured person whose contributory
wage has continued to be subject to the graduation provided for in paragraph (2) of
Article (19) of the Law for at least five contribution years. If, as a result of application
of this provision, the average wage taken as a basis for the computation of pension is
less than the actual average wage in the last two contribution years by 10% or over, a
separate pension shall be assessed for the excluded wage differences and such pension
shall be added to the original pension in accordance with such details and examples as
may be issued by Governor's decision.
2.1. For the purposes of application of the provisions of paragraph 3(d) of Article (38)
of the Law, due regard shall be given to the following:
a. The provisions of the said paragraph shall apply to the cases where the contributor's
average monthly wage in the last two years of his contribution period is less than his
average wage in any former year by 10% (ten percent) or over, due to an actual
reduction in this wage or in consequence of the application of the provision of
paragraph 3(c) of Article (38) of the Law.
b. The maximum number of periods which may be determined as separate periods shall
be only two contribution periods including the final contribution period, provided that
either periods shall not be less than two years and that the monthly average wage in
the last two years of the first separate period shall be more than 10% higher than the
monthly average wage for the final separate period.
c. In case the conditions provided for in the preceding paragraph are met by more than
one contribution period, the contribution period immediately preceding the final
separate period shall be elected.
d. If the insured person’s monthly average wage in the last two years of each separate
period is less than his wage in any year preceding such period by 10% (ten percent) or
over, the difference between them shall be taken for each year in which such difference
arises and the monthly average thereof shall be produced. Then a separate pension
shall be computed in respect of such differences and their respective period, which
pension shall be added to the original pension of that period.
e. The provisions of paragraph 1(b) of this Article shall apply to the average wage
taken as a basis for the computation of the pension for each separate period.
f. A pension shall be computed for each separate contribution period, with due regard to
the provisions of paragraphs (a), (b), (c), (d), and (e), above, and the ultimate pension
shall be equivalent to the total amount of all pensions due for those periods.
2.2 In case the conditions provided for in the two paragraphs 2.1. a and 2.1.b, above,
are not satisfied by a contribution period, the provisions of paragraph 2.1.d, above shall
apply to that period.
3. For the purposes of application of paragraph 4(a) of Article (38) of the Law, the
pensioner may not combine the wage he earns when he resumes an insurable work
with a portion of his pension in the manner provided for in the said paragraph, unless
he is 60 years old or is a recipient of a non-occupational disability pension referred to in
paragraph (7) of Article (39) of the Law.

ARTICLE (9)

1. In the application of the provisions of paragraph (1) of Article (39) of the Law, the
insured person shall be entitled to a non-occupational disability pension, if the disability
has occurred while the insured person is in employment covered under the Law, the
twelve or eighteen-month period is immediately following the completion of the
formalities for his actual registration with the Organization, and the state of disability is
established by the Medical Board within eighteen months at the most from the date of
termination of the contribution period in addition to the other statutory conditions. If
no decision establishing the disability is issued by the Medical Board within such period
for the insured person’s own reason, he shall be treated as the insured person who is
afflicted with a non-occupational disability after he leaves the covered employment
provided for in paragraph (2) of Article (39) of the Law in addition to the next
paragraph.
2. In the application of the provisions of paragraph (2) of Article (39) of the Law, the
case of the insured person who is afflicted with a non-occupational disability after he
left insurable employment shall be presented to the appropriate Medical Board to
consider the existence of the non-occupational disability required for entitlement to the
retirement pension prior to attaining age sixty. The case may be presented to the
Board at any time so long as the insured’s right to claim has not elapsed by the expiry
of the time limits provided for in Article (57) of the Law and the other statutory
conditions for entitlement to such pension are fulfilled.
3. The pension payable to the insured person who is afflicted with a non-occupational
disability after he leaves the insurable employment as well as the one who is treated as
such shall be deemed as a retirement pension to which all the relevant provisions shall
apply except that it is paid before reaching age sixty and due regard shall be given to
the following:
a. He shall not be entitled to the said pension for the period preceding the date of
leaving the insurable employment.
b. The minimum-related provisions of paragraph (3) of Article (39) of the Law as well
as the provisions of the said Article shall not apply to him.
c. This penioner shall be subject to such periodical medical tests as may be determined
by the Medical Boards until he attains 60 years of age .
The provisions of paragraphs (a) and (b), above, shall apply to cases of entitlement to
survirors pension as a result of the death of their insured breadwinner after leaving his
insurable employment which cases are provided for in pargraph (2) of Article (12) of
these Regulations.

ARTICLE (10)

For the purposes of application of the provisions of paragraph (4) of Article (39) of the
Law, an allowance of 50% (fifty percent) shall be added to the non-occupational
disability pension of the insured person if he is established by the Medical Board to be
in need of the assistance of others in the performance of his everyday life activities,
provided that such allowance shall not exceed the sum of SR 3,500 (three thousand five
hundred Saudi Riyals). Entitlement to the allowance shall commence with effect from
the date of entitlement to the disability pension or from the beginning of the month
immediately following the month in which the Board decides his entitlement to the
allowance, if the Board's decision is issued later. The Medical Board shall determine the
continuity of the need of the assistance of others. The allowance shall become final if
the need thereof continues to exist until the contributor attains sixty five years of age.

ARTICLE (11)

For the purposes of application of the provisions of paragraph 6(a) of Article (39), due
regard shall be given to the following:
1. The previous wage shall mean the insured’s full contributory wage due for the last
month of his contribution period or his full contributory wage preceding the date of
establishment of his non-occupational disability whichever is greater.
2. The insured person shall not be deemed disabled if his disability is caused by
suffering an infirmity or contracting a disease prior to the date of his actual
registration with the Organization unless the appropriate Medical Board has discovered
that the infirmity or disease has, after that date, deteriorated, which deterioration has
resulted in a drop in the percentage of his incapacitation for work.

ARTICLE (12)

For the purposes of application of the provisions of paragraph (1) of Article (40) of the
Law, due regard shall be given to the following :
1. In the event of the death of a compulsorily covered person while he is in an
employment covered under the Law, irrespective of his age, and the insured person has
had a contribution period of not less than three consecutive months or six non-
consecutive months following the completion of formalities for his actual registration
with the Organization, his family members shall be entitled to heirs pension with effect
from the beginning of the month immediately following the date of death. Such
pension shall be computed in the same method as the non-occupational disability
pension amount is computed.
2. In the event of the death of an insured person after leaving an employment covered
under the Law, his family members shall be awarded the retirement pension which shall
be paid with effect from the beginning of the month immediately following date of
death, if he has completed ten years of actual contribution or has completed the same
by adding the credited period provided for in paragraph (2) of Article (38) of the Law.
In the latter case, the amount of the contributions due for the credited period shall be
deducted from the accumulated pension payable to the deceased insured person prior
to having it distributed between the family members; then one quarter of the pension
share of each eligible family member will be deducted until the due amount is fully
settled.

ARTICLE (13)

1. For the purposes of application of the provisions of paragraph (1) of Article (41) of
the Law, the entitlement to the lumpsum compensation at age sixty shall arise if the
insured person has left the insurable employment. 2. For the purposes of application of
the provisions of paragraph (2) of Article (41) of the Law, the amount of compensation
due shall wholly be divided among the family members on equal basis. Where only
one eligible member is available, the total amount of compensation shall be paid to
him.
3. In the application of the provisions of paragraph 3(a) of Article (41) of the Law, the
lumpsum compensation may be paid to the insured person who moves to another
employment insurable under the Civil or Military Retirement Scheme without having to
wait until he attains sixty years of age, provided that:
a. his period of contribution under the Social Insurance Scheme has been terminated
after the new Law has been put into effect; and
b. his said period of contribution is considered for inclusion in the assessment of his
entitlements under the Civil or Military Retirement Scheme, subject to the rules that will
be issued by the Council of Ministers on the basis of the study that will be conducted
by the Ministerial Commission formed by the Council for this purpose.
4. In the application of the provisions of paragraph 3(c) of Article (41) of the Law, the
insured person may claim payment of the lumpsum compensation without waiting until
he attains sixty years of age in the following cases in addition to the cases provided for
in paragraphs 3(a) and 3(b) of the said Article :
a. If he is engaged in arduous or unhealthy occupations provided for in Article (4) of
these Regulations.
b. If he is sentenced by a judical order for a term of imprisonment of five years or
over, in which case the amount of compensation shall be paid to him in accordance with
the provisions of paragraph (2) of Article (5) of these Regulations.
c. If the insured person is deprived of his Saudi citizenship .

ARTICLE (14)

1. For the purposes of application of the provisions of paragraph (4) of Article (41) of
the Law, the insured person may, in any of the following two cases, repay the lumpsum
compensation he has already received for a former contribution period in order to be
credited to his contribution account:
a. The insured person who has been in insurable employment on the date the Law is
put into effect and has received a lumpsum compensation under the old Law may
express his wish to re-include the relevant contribution period provided that he repays
the compensation amount in full in one payment within one year from that date.
However, if such re-inclusion does not render the insured qualified for pension when his
contribution to the Scheme is terminated thereafter, the re-included period shall be
deleted and the insured shall be refunded the compensation previously repaid by him.
b. The insured person who subsequently resumes employment and has already received
a lumpsum compensation under the new Law, may express his wish to re-include the
relevant period, provided that he repays the compensation amount in full in one
payment within one year with effect from the date of his re-employment.

ARTICLE (15)

1. In the application of the provisions of paragraph (1) of Article (54) of the Law, if the
insured person willfully injures himself or commits a criminal act causing contingency
but remains alive, he shall not be entitled to the benefits provided for in the Law, but if
he dies as a result thereof, his family members shall be entitled to the benefits payable
under the Law.
2. In the application of the provisions of paragraph (1) of Article (55) of the Law, the
pensions payable during the term of imprisonment of the insured person shall be paid
to his family members in accordance with the provisions of paragraph (2) of Article (5)
of these Regulations.

ARTICLE (16)

In the application of the provisions of Article (58) of the Law, due regard shall be given
to the following:
1. There shall be submitted an official document satisfactory to the Organization,
evidencing the missing of the insured person in an incident that is almost fatal within
or outside the Kingdom.
2. Where the Organization is not satisfied that the incident causing the missing of the
insured person has not been almost fatal, any of his family members or whom it may
concern may submit to the competent court a request for issuance of an order whereby
the missing person is considered as dead in accordance with the provisions of the
Shariah Law, in which case the Organization shall be liable to execute the ensuing
order. 3. The provisions of this Article shall also apply to the case of missing of any of
the family members who are eligible for pension, if the same is intended to re-distribute
his share among the remaining eligible members.

ARTICLE (17)

1. In the application of the provisions of Article (66) of the Law, if an insured under the
old Law continues to be covered on the date on which the new Law is put into effect
and his contributory wage has dropped as a result of excluding some allowances from
the contributory wage elements pursuant to the provisions of paragraph 1(a) of Article
(19) of the Law or consequent to restriction to the maximum contributory wage
provided for in paragraph 1(b) of the said Article, and the total of his two contribution
periods under the two Laws reaches the level required to give him the right to receive
a pension, his pension shall be adjusted by one of the following two methods,
whichever is better for him.
a. The pension payable for the total of his former and subsequent contribution periods
shall be computed in accordance with the provisions of paragraphs (b), (c) and (d) of
Article (7) of these Regulations on the basis of the average contributory wage in the
last two years of his subsequent contribution period.
b. A separate pension shall be awarded for his contribution period completed under the
old Law regardless how small it is. This pension shall be computed in accordance with
the provisions of paragraphs (c) and (d) of Article (7) of these Regulations and on the
basis of the average contributory wage in the last two years of the said period or the
average wage for the said period if less than two years. There shall be added another
separate pension for the subsequent contribution period completed under the new Law
regardless how small it is, and such pension shall be computed on the basis of the
average contributory wage in the last two years of this period or the average wage for
the entire said period if it is less than two years, with due regard to the provisions of
paragraph (b) of Article (7) of these Regulations.
Provided always, the number of periods to be deemed as separate shall not be more
than two periods of which the first is the one completed before the effective date of the
new Law and the second is the one completed thereafter.
2. If the insured person referred to in the preceding paragraph is entitled to a lumpsum
compensation under paragraph (1) of Article (41) of the Law, such compensation shall,
with due regard to the rates provided for in the said paragraph of the Law, be
computed in either one of the following two methods whichever is better for him:
a. To compute the compensation for both periods on the basis of the average monthly
contributory wage in the last two years of the last period. b. To compute the
compensation for each period separately on the basis of the average monthly
contributory wage in the last two years of the respective period or the average wage in
the entire period if it is less than two years.

SECTION III

PROVISIONS CONCERNING VOLUNTARILY COVERED PERSONS

ARTICLE (18)

1. In the application of the provisions of paragraph (4) of Article (4) and paragraph (4)
of Article (8) of the Law, the voluntarily covered person shall be subject to all the
provisions of the Law that are not contradictory to his status as voluntarily insured
person save where a special provision is set out therefore, with due regard to the
following:
a. The monthly income elected by the voluntarily covered person from among the
income categories included in Schedule No. (1) attached to the Law shall be
correspondent to the monthly contributory wage in respect of the compulsorily covered
person, and the benefits entitled to him shall be computed with due regard thereto.
b. One contribution month shall be recorded in favour of the voluntarily covered person
against every month for which he has paid full contribution.
c. The provisions of paragraph (2) of Article (19) and paragraph 3(c) of Article (38) of
the Law shall not apply to the voluntarily covered person.
2. In cases where the voluntarily covered person elects under Article (8) of the Law an
income category exceeding his last wage in his compulsory coverage by more than 10%
or exceeding a category higher than such percentage (if the percentage falls between
two categories), the benefit payable to him for his compulsory coverage period shall be
computed on the grounds that it is an independent period, although it shall be taken
into consideration upon the determination of the kind of benefit (pension or lumpsum
compensation, as applicable) due to him for the total contribution periods.
3. If the voluntarily covered person is entitled to pension for his compulsory
contribution period, he shall be treated in accordance with the provisions of paragraph
(4) of Article (38) of the Law, without prejudice to the provisions of the preceding
paragraph (2).
4. The voluntarily covered person may not claim payment of pension by reason of
attaining sixty or more years of age unless his actual contribution period preceding the
discontinuation of his coverage is of the level that gives him the right to receive a
pension under the provisions of paragraph 1 (a) of Article (38) of the Law, with due
regard to the provisions of paragraph (5) of Article (19) of these Regulations.

ARTICLE (19)

1. For the purposes of application of the provisions of Articles (39) and (40) of the Law,
the voluntarily covered person shall be treated the same as the insured person who was
afflicted with disability or died while he had been in employment, if he had paid all the
contributions due until the end of the month preceding the month in which the
disability or death occurred, provided that payment should have actually been effected
prior to such date. Where this condition is not fulfilled, the insured person shall be
treated the same as the insured person who is afflicted with disability or dies after he
leaves the insurable employment.
2. In the application of the provisions of Article (45) of the Law, to accept his
application for early retirement prior to reaching age sixty, the voluntarily covered
person shall produce to the Organization such documents as may prove the
discontinuation of his activity or employment on which basis he has participated in the
Scheme, such as cancellation of the commercial register or sale or liquidation of the
establishment, provided that he has not been engaged in any of the activities or
employments covered by the Law.
3. If a voluntarily covered person has received early retirement pension and has,
subsequently, resumed activity or employment before age sixty, he shall be treated as
follows:
a. If he is re-engaged in any activity or employment that permits the insured person to
qualify for voluntary coverage, his pension shall be put on hold even if he has not
requested to have a voluntary coverage, in which case the pension shall remain on hold
until the date on which he leaves such activity or attains sixty years of age and
continues to be unwilling to participate in the Scheme again, whichever of the two dates
is earlier.
b. If the insured person resumes a compulsorily covered employment, he shall be
treated in accordance with the provisions of paragraph 4(a) of Article (38) of the Law.
4. If, prior to attaining age sixty, the voluntarily covered person fails to notify the
Organization of his resumption of any activity through which he may request to have
voluntary covarage or become subject to compulsory covarage, the Organization may,
as soon as it is aware thereof, suspend his pension and claim him to repay the pensions
he has unlawfully received plus the fines imposed by the Law.
5. For the purposes of application of the provisions of paragraph (3) of Article (8) and
Article (46) of the Law, the voluntarily covered person’s discontinuation of payment of
contributions shall not have effect on the lawfully prescribed times of entitlement to
benefits. Where the time of entitlement falls due and it is discovered that his total
contribution periods do not qualify him for pension, his membership shall be cancelled
and the total contributions paid by him shall be refunded to him or to his family, as
applicable.
SECTION IV

DESIGNATION OF THE FAMILY MEMBERS AND THE

METHOD OF COMPUTATION OF THEIR ENTITLEMENTS
ARTICLE (20)

1. For the purposes of designation of the family members who are eligible for survivors
pension under the provisions of paragraph (8) of Article (2) of the Law, due regard shall
be given to the following definitions and conditions:
a. "Widow of the deceased insured person" is the wife of the deceased at the time of
his death or his divorcee by revocable divorce, if the death occurred during the waiting
period.
b. "Widower of the deceased female insured person" is the one whose insured wife died
and is suffering an earning incapacity for as long as he is incapacitated . He is deemed
to be legally incapacitated if, upon the death of his wife, he was over sixty years of age
and unemployed.
c. "Sons" are the sons of the deceased insured person who are under twenty one years
of age until they complete such age, which age limit is extendible to twenty six if they
are pursuing their studies in an educational or vocational institution, and no age limit is
set as long as they are suffering an earning incapacity by reason of chronic disease or
infirmity.
d. "Daughters" are the daughters of the deceased insured person until they marry.
e. "Grandsons and grand-daughters" are those whose father (the son of the insured
person) died during the lifetime of the insured person, subject to the same conditions
prescribed in respect of the sons and daughters, provided that they have been
supported by the insured person until the date of his death.
f. "Father" is the father of the deceased insured person who was supported by the
insured person until he died, provided that he is suffering a loss of earning capacity,
and he shall be deemed to be legally incapacitated to earn if he was over sixty and not
working at the time of the death of his son.
g. "Mother" is the mother of the deceased insured person who was supported by the
insured person until the date of his death.
h. "Grandfather" is the grandfather of the deceased insured person who was supported
by the insured person until the date of his death, provided that he is suffering a loss of
earning capacity, subject to the same conditions applicable to the father.
i. "Grandmother" is the grandmother of the insured person who was supported by the
insured person until the date of his death.
j. "Brothers and sisters" are the brothers and sisters of the insured person subject to
the same conditions provided for in respect of the sons and daughters without being
required to be orphans so long as they were supported by the insured person until the
time of his death.
2. The appropriate Medical Board shall determine the earning incapacity state for the
purposes of application of the preceding paragraphs, after reviewing the medical
reports presented by the beneficiary.

ARTICLE (21)

1. In the application of the provisions of paragraph (8) of Article (2) of the Law, the
person shall be considered as dependent on the insured person or pensioner if he
depends in meeting any of his basic elements of living expenses on the money given to
him by the insured person or pensioner. The dependency shall be invalid if the
beneficiary earns from an employment an income equivalent to or exceeding his share
of pension of the insured person or pensioner. Nevertheless, he may combine his
pension share with his employment income within the limits prescribed in paragraph (9)
of Article (38) of these Regulations.
2. The satisfaction of the dependency condition shall be evidenced by a legal deed.

ARTICLE (22)

For the purposes of application of the provisions of Article (40), and paragraph (2) of
Article (41) of the Law, the family members provided for in paragraph (8) of Article (2)
of the Law shall include the unborn child whose entitlement shall be retained by the
Organization until it is born when it shall be paid in accordance with the following:
a. If the child is born alive, his/her retained share shall be paid.
b. If more than one newborn is delivered, the retained accumulated pension amount
shall be distributed equally between them, and the survivors pension shall be re-
distributed among the eligible family members in accordance with the rules set forth in
paragraph (2) of Article (35) of the Law with effect from the beginning of the month
immediately following the date of delivery of the newborn. If the entitlement retained
by virtue of the preceding paragraph is a lumpsum compensation, it shall be distributed
equally between the newborns.
c. If the child is stillborn, the shares of the family members shall be re-distributed
equally among the remaining eligible family members in accordance with the provisions
of paragraph (2) of Article (35) or paragraph (2) of Article (41) of the Law, as
applicable.

ARTICLE (23)

Subject to the provisions of paragraphs (3) and (4) of Article (35) of the Law, due
regard shall be given to the following:
1. The pension payable to the widow, daughter, sister or granddaughter shall be
discontinued if she marries. If she is divorced or widowed thereafter, payment of her
discontinued share shall be resumed in the same amount she used to receive, if her
share has not been redistributed among any of the other eligible survivors. However, if
such share has wholly or partly been redistributed among any of the eligible survivors,
the deceased's pension shall be redistributed among all the eligible family members
who are still entitled to the pension.
2. The pension of the incapacitated son, brother or grandson shall be cancelled in case
he is no more incapacitated. However, if he is re-incapacitated, his discontinued share
shall be resumed to him in the same amount he used to receive, if it has not been
redistributed among any of the other survivors. If such share has wholly or partially
been redistributed among any of the eligible survivors, the deceased's pension shall be
redistributed among all the eligible family members who are still entitled to the pension.

3. If the daughter, sister or grand-daughter, who was married at the time of death of
the insured person, is divorced or widowed, the deceased's pension shall be
redistributed among all eligible family members who are still entitled to pension, for the
purpose of granting her the payable share.
4. If a change has occurred in the number of the family members, and such change has
affected the amount of the share received by the member whose entitlement to pension
has been reinstated, the survivors pension shall be redistributed among all eligible
family members who are still entitled to pension.
5. As an exception to the provisions of paragraph (1) of Article (20) of these
Regulations, if a family member has not been included in the family members eligible
for the insured person’s pension at the time of his death and has, thereafter, filed a
claim for payment of a pension share and presented an evidence confirming that he/she
was supported by the insured person at any time before the insured person died,
his/her share of the pension shall be paid non-retroactively, with due regard to the
provisions of Article (21) of these Regulations, provided that it is paid within the limits
of a pension surplus that has not been distributed, and that payment of the same will
not affect the pension shares of the other beneficiaries, without prejudice to the
provisions of Article (57) of the Law. This provision shall apply regardless whether the
death of the insured person has taken place before or after the effective date of the
new Law (1).

ARTICLE (24)

With due regard to the provisions of paragraph (1) of Article (15) of these Regulations,
if a family member has intentionally caused a risk to arise or committed a criminal act
against the insured person, such member shall not be entitled to any benefit, and the
benefit payable to the family members shall be computed on the grounds that the
deprived member does not exist.

ARTICLE (25)

For the purposes of application of the provisions of Article (51) of the Law, the death
grant shall fully be distributed among the eligible family members on equal basis. If
only one eligible member is available, he shall be entitled to the whole grant, and the
Governor shall determine such procedures and documents as may be required for
payment of such grant.

SECTION V
THE PAYMENT PROCEDURES AND THE REQUIRED DOCUMENTS

ARTICLE (26)

1. The Governor shall determine such documents and forms as may be required for the
payment of benefits. He may, for example, rely on the data produced by the computer
of the Organization and the relevant microfilm copies for the purposes of payment of
entitlements to the insured persons and their family members, in which case such data
and copies shall be deemed to be sufficient documents for payment.
2. The employer shall, upon termination of the service of an insured person, notify the
appropriate office of the Organization of the termination of service and the date and
reason of termination, within the first fifteen days of the month immediately following
the month of termination of his service in accordance with such format as may be
determined by the Governor.
3. The application for payment of benefits due under the Law shall be submitted by the
insured person or his family members, as applicable, to the nearest office on such form
as may be determined by the Governor, and the required documents shall be
associated therewith. The office shall contact the beneficiaries to complete any missing
and to request the help of the employer in contacting them, if necessary.

ARTICLE (27)

The Organization shall take such measures as may be necessary to ensure the
assessment and payment of the pensions and compensations within two weeks at the
most from the date of submission of the application duly completed and associated with
the required documents.

ARTICLE (28)

1. The eligible survivors of the insured person shall, in the event of their entitlement to
the survivors' pension or lumpsum compensation under the provisions of Articles (40)
and (41) of the Law, attach the following documents to the application for payment :
a. Certificate of death of the insured person or an official document acceptable to the
Organization specifying the date of death.
b. An officially certified document listing the names and ages of the beneficiaries.
c. The marriage contract of the insured person’s widow or widows, if available, or any
other official document to this effect.
d. A document, stating that the deceased insured person was, at the time of his death,
supporting the family member applying for payment, in the manner described in Article
(21) of these Regulations, and such document shall not be required in respect of the
widow, sons and daughters.
e. A document, acceptable to the Organization, indicating the regular enrollment in
educational or vocational institution of the sons, grandsons and brothers whose ages
exceed twenty one years at the commencement of entitlement or thereafter, and such
document shall be renewed annually until the completion of study or attainment of
twenty six years of age whichever is earlier, or medical reports confirming their earning
incapacity, as applicable, shall be submitted for presentation to the Medical Board for
determining the state of disability.
f. An official document evidencing that the widower, father or grandfather has attained
sixty or more years of age and is unemployed, but if he is under that age he shall
submit a medical certificate confirming his earning incapacity for presentation to the
Medical Board to determine the state of incapacitation .
g. Such other documents as the Governor may deem necessary to be attached to the
application for payment.

ARTICLE (29)

1. The pension share shall be paid to the respective beneficiary if he has attained
eighteen years of age.
2. The pension share of the minor or the incompetent person shall be paid to his
guardian or custodian designated by a legal document explicitly stating that the
guardian or custodian is authorized to receive the pension, and such document may be
submitted at any time so long as the entitlement to pension exists.
3. In case of failure to submit the document provided for in the preceding paragraph
together with the other documents required for payment, the appropriate office shall
pay the share of the minor or incompetent person to the person living with him if he is
the father, the grandfather, the mother or the most matured of his brothers, as
indicated in the documents, until a legal document designating a guardian or custodian
is submitted to the office, in which case the relevant payment shall accordingly be
made with effect from the pension of the month next to the date on which the said
document is submitted (1).

ARTICLE (30)

Without prejudice to the provisions of the preceding Article, if the applicant for payment
is a guardian, custodian or an agent of the recipient of a pension or compensation or of
his eligible family members, the applicant shall attach to the application for payment:
a. a power of attorney issued by the appropriate authority or a power of attorney
signed by two witnesses to be prepared by the proxy before the competent employee
and approved by the Office Director, and the power of attorney in both cases shall be
renewed in regular intervals to be determined by the Governor.
In exception of this provision, the legal document issued by the appropriate authority
shall be accepted in respect of payment to a female eligible family member only and
the power of attorney for overseas pension payment shall be accepted in respect of
pensions payable to Saudis only (2) .
b. or the decision appointing him as guardian, custodian or agent of an absentee, as
applicable.

ARTICLE (31)

The recipient of a pension or compensation or any of his eligible family members shall
indicate, in the application for payment, the method of payment to be chosen from
such methods as may be specified by the Organization. Likewise, the beneficiary may,
for reasons acceptable to the Organization, request that the method of payment of the
periodical benefits be changed for subsequent months, provided that the pensions or
other benefits shall be paid within the Kingdom. Nevertheless, the Governor may, in
such exceptional cases as he may determine, accept to have payment made outside the
Kingdom in accordance with the procedures and conditions to be determined by him.

ARTICLE (32)

The Organization shall notify the beneficiary of all the particulars related to the pension
or compensation due to him, the amounts withheld, if any, the net amount due for
payment, the agency through which payment will be made, and the conditions under
which such payment shall continue to be made.

ARTICLE (33)

1. Entitlement to pension shall take effect on and from the beginning of the month
immediately following the month in which the condition qualifying for entitlement
arises, and pension shall be paid in advance with effect from the said date, provided
that the regular payment of pensions shall be made within the first week of the month.
Nevertheless, by decision of the Governor, the time of payment may be made earlier, if
he deems such arrangement is suitable.
2. Entitlement to pension shall be terminated at the end of the last day of the month in
which the incident required for termination of entitlement has arised.

ARTICLE (34)

In agreement with the paying agencies, the Governor shall determine the period during
which the benefits shall continue to be payable by the said agencies and the dates on
which unpaid benefits shall be returned to the Organization. The Governor shall, by
decision, regulate the cases in which payment shall be made by the offices of the
Organization.

ARTICLE (35)

1. The pensioner or his eligible family member shall notify the appropriate office of any
change affecting his entitlement to pension, particularly if he is engaged in paid work.
If he fails to do so, or refrains from providing the office with the information it requires
or provides erroneous information, or fails to respond to the date specified by the office,
or if the office has any doubt in respect of the submitted documents, the office Director
shall have the right to suspend payment of all or part of the pension until it is
ascertained that the beneficiary is entitled to the payment. When payment to the
beneficiary shall be resumed without prejudice to the provisions of the next paragraph
and the provisions of Article (39) of these Regulations.
2. The pensioner or his eligible family members or their representative by Law or by
agreement, shall submit to the Organization on the dates determined by the Governor a
declaration signed by two witnesses on such form as may be determined by the
Governor for this purpose to prove that they still meet the conditions qualifying for the
pension or to be signed by the pensioner or his eligible family members, as applicable,
before the competent official. Payment of the pension shall be suspended in case of
failure to submit the said form on the fixed date, and it shall be resumed only after the
form is submitted so long as the conditions for entitlement to pension are still fulfilled.
Before suspending payment, the Governor may give the applicant for payment a grace
period for submitting the said declaration. The periods provided for in Article (57) of
the Law shall become applicable upon the expiry of the said grace period, with due
regard to the rules provided for in Article (40) of these Regulations.

ARTICLE (36)

The recipient of a non-occupational disability pension shall report to the appropriate

Medical Board for medical re-examination on the dates fixed by the Board to establish
that his state of disability continues. If, without a reason acceptable to the Office
Director, he refuses to submit himself to such medical examination, the payment of
pension shall be suspended until he submits himself to the medical examination, when
payment of his pension shall be resumed without prejudice to the provisions of Article
(40) of these Regulations. This provision shall also apply to any of the family members
qualifying for pension as a result of the earning incapacity.

SECTION VI
GENERAL PROVISIONS

ARTICLE (37)

With due regard to the provisions of Article (48) of the Law and Article (25) of the
Registration and Contribution Regulations, the age shall, for the purposes of entitlement
to benefits, be determined in accordance with the Hijrah calendar. However, if the date
of birth is indicated in Gregorian, the corresponding date in Hijrah shall be taken. In
case the day and month of birth are not specified, the date of birth shall be the first day
of the seventh month of the Hijrah or Gregorian calendar year of birth, as applicable.

ARTICLE (38)

The combination of two or more benefits payable under the Law or the combination of a
benefit with the wage shall be within the following limits and terms:
1. The insured person may combine both the benefit and the pension payable to him as
an insured person but within the limits provided for in paragraph 3(a) of Article (55) of
the Law. The total amount that is accordingly payable to him shall be the amount
distributable among his family members after his death.
2. The insured person or his eligible family members, as applicable, may combine the
lumpsum compensation payable under the Occupational Hazards Branch with the
benefits payable under the Annuities Branch. He or they may also combine the
lumpsum compensation payable under the Annuities Branch with the benefits payable
under the Occupational Hazards Branch.
3. The sons and daughters may combine their pension or benefit share payable in
respect of their father with that payable in respect of their mother.
4. The grandsons and granddaughters may combine their monthly benefit or pension
payable in respect of the insured person with that payable in respect of their father or
mother.
5. The widow may combine the benefit or pension payable in respect of herself with
that payable in respect of her husband, and the same provision shall apply to the
qualifying widower.
6. The family member who is eligible for pension shall combine the monthly pensions
with the benefits due to him if he is suffering an earning incapacity provided for in
Article (20) of these Regulations.
7. In cases other than those provided for in the preceding paragraphs, if a person
qualifies for more than one pension or a pension and benefit under the provisions of the
Law, he shall only be paid the higher between them. However, if the higher benefit or
pension is less than SR 3,000 (three thousand Saudi Riyals), he shall be paid from the
amount of the other benefit or pension such portion as may make up his total amount
to reach the said maximum.
8. The widow shall combine her benefit or pension share payable in respect of her
insured husband with her work income.
9. If any of the eligible family members, save for the widow of the insured person,
works for a wage equivalent to or exceeding his pension or benefit share, his pension or
benefit payment shall be suspended. Should the amount of pension or benefit exceed
the amount of wage, the former shall be reduced to match the latter. Nevertheless, he
may combine the two within the limit of SR 3,000 (three thousand Saudi Riyals), and if
the wage is less than the said maximum limit, he shall be granted the balance to make
up such maximum limit (1) .
10. For the purposes of application of the provisions of paragraph 3(d) of Article (55) of
the Law, each family member may combine more than one grant payable under Article
(51) of the Law in respect of more than one insured person .
11. The foregoing provisions shall not prejudice the provisions of the Occupational
Hazards Branch Benefits Regulations related to the cases and limits of combination of
the daily allowance with other benefits.

ARTICLE (39)

The Organization may in all cases recover the pensions or compensations whatsoever
received by the insured person or any of his eligible heirs in excess of the sum he is
entitled to under the Law by withholding the excess amount of other amounts which
may be due to him from the Organization. If no amount is so due, he will be claimed to
repay the same by statutory methods, with due regard to the following provisions.
1. Without prejudice to the provisions of paragraph (2) of this Article, if the excess
amount is paid in the form of a pension or any other form of payment regularly made to
the insured person or to his eligible survivors, it shall be rectified and recovered by
deducting the same from the amount accumulated for the insured person or his eligible
survivors, as applicable, or from his/their monthly entitlements by monthly installments
not exceeding 10% of the monthly payment or otherwise at a higher rate not exceeding
25% monthly as agreed by the beneficiary.
2. If the excess payment is made to an eligible survivor of the insured person for whose
entitlements are still available with the Organization, the excess amount shall be
recovered from his share without claiming the remaining survivors to repay except
within the limits redistributed to them in case of termination of his eligibility for benefit.

3. If the excess payment is caused as a result of incorrect information provided by the

insured person or one of his eligible survivors or the one who acts on their behalf, the
Organization may apply thereto the provisions of Article (62) of the Law as well as
require him/them to repay the excess payment.
4. In cases where the Organization fails to recover the excess payment, the Governor
may claim the causing official(s) for payment of the same, if it is established by
investigation that they have not showed the caution expected from the ordinary official.

5. The Governor may, for justifiable reasons determined by him, disregard recovery of
excess payment in cases where there are no other amounts due from the Organization
to the insured person or his eligible survivors to which a deduction can be applied.

ARTICLE (40)

For the purposes of application of the provisions of Article (57) of the Law, claims for
transportation and lodging allowances and decedent's family grant shall not be accepted
after the expiry of one year, and claims for the remaining benefits shall not be accepted
after the expiry of five years from the date on which the entitlement to benefit arises,
unless there is an excuse acceptable to the Governor, with due regard to the following
rules:
1. The application for payment submitted by one of the beneficiaries shall interrupt the
prescribed period in respect of the remaining beneficiaries who have not applied for
payment of their entitlements.
2. The application submitted for payment of any kind of benefits shall be deemed an
application for payment of the remaining benefits due. Likewise, the application
submitted by an insured person for establishment of his non-occupational disability
shall be deemed an application for payment of entitlements due under the Law and
these Regulations.
3. If the application for payment is submitted as provided for in the preceding two
paragraphs with complete address and paying agencies shown therein, and such
application is received within the time limit prescribed in Article (57) of the Law, the
entitlement to pension shall remain valid until the beneficiary receives his first pension
from the Organization notwithstanding that the completion of documents and
information may be delayed. However, in case of an application with incomplete
documents and information, the Organization shall endeavor to contact the beneficiary
by using all available means of communication, including advertising in the information
media and approaching the employer and the beneficiaries' relatives if known to the
Organization, in which case the time limit provided for in Article (57) of the Law shall
restart on and from the date of the first letter issued by the Organization for the
completion of the required documents and information.
4. As for the regular pensions due after the payment of the first pension, the provisions
of Article (57) of the Law shall apply to each such pensions, should the beneficiary fail
to apply for payment thereof.
5. If the application for payment is submitted to the Organization as provided for earlier
after the lapse of the time limit prescribed in Article (57) of the Law, and the
Organization accepts the excuse for delay, the Organization shall pay to the beneficiary
his full entitlements due with effect from the date on which such entitlement arises.
However, if the Organization refuses his excuse, it shall pay the monthly pension with
effect from the pensionable month in which the application is submitted in addition to
the pensions payable for the past twelve months.
6. The provisions of this Article shall not prejudice the time limit prescribed for
presentation of the non-occupational disability case to the Medical Board to establish
the state of disability provided for in paragraph (2) of Article (39) of the Law. |

ARTICLE (41)

For the purposes of application of the provisions of Article (61) of the Law, the insured
person or his eligible survivors, as applicable, shall have the right to appeal to any
decision issued by any agency of the Organization in connection with entitlement to or
method of computation of benefits. The submittal and hearing of appeals shall be done
in accordance with the detailed provisions set forth in the Registration and Contribution
Regulations.

SECTION VII
TRANSITIONAL PROVISIONS

ARTICLE (42)

1. For the purposes of application of the provisions of Article (67) of the Law,
the following rules shall apply:

(a) The oldage pensions and the non-occupational disability pensions payable
to the insured person under the old Law and continue to be payable on the
effective date of the new Law shall be raised to SR 1,500 (one thousand five
hundred Saudi Riyals) if they are less than such amount, with due regard to the
provisions of paragraph (d) of Article (7) of these Regulations, as regards the
family allowance.

(b) The allowance for the need for assistance of others payable to the
recipients of non-occupational disability pension shall be reassessed on the
basis of the pension after it is raised to the minimum limit (1).

2. The pension shares of the family members payable under the old Law and
continue to be payable on the date the new Law is put into effect, shall be
revised by having their deceased breadwinner's pension amount raised to SR
1,500 (one thousand five hundred Saudi Riyals), if it is less. If, after such
raise, the share of any family member is less than SR 300 (three hundred
Saudi Riyals) per month, it shall be raised to that much, provided that the total
amount of the shares of the family members, pursuant to this provision, shall
not exceed SR 1,500 (one thousand five hundred Saudi Riyals) per month or
the average wage taken as a basis for the computation of the breadwinner's
pension, whichever is greater.

3. The provisions of the preceding two paragraphs shall apply to the Saudi
insured person and their family members as well as to the non-Saudi insured
person and their family members who receive their pensions within the
Kingdom, provided that they have permanent residence permit.

4. The provisions of the preceding paragraphs shall apply with effect from the
beginning of the month immediately following the date on which the new Law
is put into effect.

ARTICLE (43)

For the purposes of application of the provisions of paragraph (2) of Article

(69) of the Law, the following rules shall apply:

1. The provisions of the new Law shall apply to any new incident arises under
the new Law and affects the entitlements of insured person who have ended
their period of contribution and qualified for pension under the old Law and
the entitlements of their family members, for example where the pensioner is
re-engaged in an insurable employment, the widow, daughter, granddaughter,
or sister is divorced or widowed and the sons and brothers are past the age
qualifying for pension, with due regard to the provisions of the next
paragraphs:

2. The family members' pensions payable under the old Law and continue to
be payable on the date the new Law is put into effect shall remain subject to
the provisions of the old Law for the purposes of identifying the family
members who are eligible for pension, their pension distribution percentages,
and re-instatement of the cancelled shares of the other members. As an
exception to this provision, the Governor may include any of the new eligible
family members added under the new Law such as the widower, grandfather,
grandmother, the insured person’s grandsons and granddaughters whose father
died during the lifetime of the insured person and the divorced or widowed
daughters, sisters and other survivors provided for in the new Law, and grant
them shares of the insured person’s pension, in cases where the breadwinner's
pension has not been wholly distributed, and such shares shall be within the
undistributed balance and on the basis of the percentages provided for in the
old Law.

3. The insured person whose period of contribution has been terminated prior
to putting the new Law into effect and has not received the lawfully payable
benefit for such period and is not qualified for pension under the old Law
shall be entitled to receive a pension subject to the conditions and provisions
set forth hereunder :

3.1 The insured person who has completed a contribution period of at least
120 (one hundred twenty) months and has attained or exceeded age sixty
before or after the Law is put into effect, shall be entitled to claim payment of
a retirement pension.

3.2 The insured person who has completed a contribution period of at least
300 (three hundred) months before the Law is put into effect, may claim
payment of early retirement pension.

3.3 The female insured person who has completed a contribution period of at
least 120 (one hundred twenty) months and has attained or exceeded age fifty
five before or after the Law is put into effect may claim payment of retirement
pension.

3.4 The insured person who is engaged in arduous and unhealthy works and
has completed a contribution period of at least 120 (one hundred twenty)
months and has left employment before the Law is put into effect, may claim
payment of retirement pensions subject to the same provisions of paragraph
(3) of Article (4) of these Regulations.

3.5 If the insured person is sentenced for a term of imprisonment, his family
members may benefit from the retirement pension advantages in accordance
with the provisions of Article (5) of these Regulations notwithstanding that the
term of sentence is issued before and extends beyond the effective date of the
Law or is issued after the effective date of the Law.

3.6 The insured person who has attained age sixty or over before or after the
Law is put into effect and has completed a contribution period of 60 (sixty) or
more months but less than 120 (one hundred twenty) months, (or his family
members in the event of his death) may claim to have credit periods in
accordance with the provisions of Article (6) of these Regulations, so long as
the other lawfully prescribed conditions are satisfied.

3.7 The insured person who is afflicted with a non-occupational disability or

dies before or after the new Law is put into effect, or his family members, as
applicable, shall receive the respective pension payable under the old Law.
However, in case of failure to satisfy the conditions qualifying for the said
pension, he or they, as applicable, shall be paid the pension payable to the
insured person who is afflicted with a non-occupational disability or dies after
leaving employment, in accordance with the provisions of paragraph (2) of
Article (39) or paragraph (1) of Article (40) of the new Law, as applicable, by
inclusion of the credit period.

4.1 The insured person who has received a lumpsum compensation during the
year immediately preceding the outset of the new Law as a result of his
attainment of age sixty or over or his affliction with a non-occupational
disability, shall be entitled to receive the retirement pension in the following
two cases :

a. If his contribution period is equivalent or exceeding 120 (one hundred

twenty) months.
b. If his contribution period is 60 (sixty) or more months but less than 120
(one hundred twenty) months, in which case he shall be credited a period to
the extent that makes up 120 (one hundred twenty) months, in accordance with
the provisions of Article (6) of these Regulations.

In case the said insured person dies in 1421 H or 1422 H, his family members
may apply for benefiting from the provisions of this paragraph. The
Governor is authorized to specify the supporting document evidencing that
compensation has been paid in 1421 H.

4.2 To benefit from the provisions of the preceding paragraph 4.1, the insured
person or his family members shall repay the lumpsum compensation that the
insured person has already received, provided that repayment of the same shall
be made in one payment within one year from the date on which the Law is
put into effect or one year from the date of death of the insured person, as
applicable.

5.1. The pension payable in the above cases shall be computed on the basis
provided for in the old Law with the allowance for the need for help of others
and the allowance for dependants, as may be payable, added to it, without
prejudice to the provisions of paragraphs (c ) and (d) of Article (7) and
paragraph (2) of Article (42) of these Regulations.

5.2 In exception of the provisions of the preceding paragraph, the pension for
the credited period included under paragraphs (3.6) and (3.7) of this Article
shall be assessed in accordance with the provisions of paragraph (b) of Article
(7) of these Regulations.

5.3 Save for the provisions of the preceding two paragraphs (5.1) and (5.2),
the insured person and the family members, as applicable, shall be subject to
all the provisions of the new Law including the provisions pertaining to the
identification of the family members eligible for pension and their shares.

6. The pensions payable in pursuance of the preceding paragraphs shall be

entitled to with effect from the respective dates fixed as follows:

a. With effect from the date of attaining age sixty, provided that the date of
implementation of the Law has not come earlier, in respect of the pensions
payable under the provisions of paragraph (3.1) of this Article.

b. With effect from the beginning of the month immediately following the date
of application for payment, in respect of the application for early retirement
pension before attaining age sixty in accordance with the provisions of
paragraphs 3.2, 3.3 and 3.4 unless the insuredperson has already attained age
sixty in which case he shall be subject to the provisions of the preceding
paragraph (a).

c. With effect from the date of putting the Law into effect, in respect of the
pension payable under the provisions of paragraph (3.5).
d. With effect from the date of putting the Law into effect, in respect of the
pension payable in accordance with the provisions of paragraph (3.6) for
anyone who has attained age sixty or over before the Law is put into effect and
with effect from the date on which he has attained the said age for the one
who has attained it after the Law is put into effect.

e. With effect from the beginning of the month immediately following such
date as may be fixed by the Medical Board for the establishment of the
disability, or from the beginning of the month immediately following the date
of death, as applicable, in respect of the pensions payable in accordance with
the provisions of paragraph (3.7).

7. The female insured person who has not attained sixty years of age and has
no access to pension in accordance with the provisions of the preceding
paragraphs may file a claim for payment of the lumpsum compensation she is
entitled to.

8. In all cases of entitlement to pension by those whose contribution period

has been terminated prior to putting the new Law into effect under the
provisions of this Article or the old Law, which pension becomes due after the
date on which the new Law is put into effect or has not been paid by the said
date, the average wage taken as a basis for the assessment of the pension shall
be computed in accordance with the provisions of paragraph (3.c) of Article
(38) of the Law.

9. a The provisions of Article (38) of these Regulations as regards

combination of the pension with the benefit or pension or benefit with the
wage shall apply to those who have been entitled to pensions or benefits
payable under the old Law and whose entitlement thereto has been
discontinued because the provisions of that Law do not permit combination
of benefits with benefits or benefits with wages. However, this provision
shall take effect if an undistributed surplus of the pension or benefit is
available, in which case the provisions of Article (38) of these Regulations
shall be applicable within such surplus, provided that the application of the
provisions of this paragraph shall not result in payment of any sums for the
period preceding the effective date of the new Law.

9.b Sons, grandsons and brothers who have been entitled to pensions or
benefits under the old Law and payment of their entitlement has been
discontinued due to attaining age 20 or age 25 (for students), payment of their
entitlements shall be resumed until age 21 or age 26, as applicable, provided
that an undistributed pension surplus is available and paid within the limit of
the available surplus and that this will not result in payment of any amount for
a period preceding the effective date of the new Law. The provisions of this
paragraph shall exclusively apply to the sons, grandsons and brothers who are
Saudi nationals or non-Saudi nationals permanently residing in the Kingdom.

10. The provisions of paragraph 4.a of Article (38) of the new Law shall apply
to the pensioners who have resumed work insurable under the old Law and
whose payment of pension has been discontinued under the provisions of
paragraph (4) of Article (38) of the old Law and remained discontinued until
the effective date of the new Law, provided that this shall not result in
payment of any sum for a period preceding the effective date of the new Law.
OCCUPATIONAL HAZARDS BRANCH BENEFITS
REGULATIONS

SECTION I

METHODS AND PERIODS FOR REPORTING

EMPLOYMENT INJURIES

ARTICLE (1)

1. The injured person, if his condition so permits, or the one who acts on his
behalf, shall notify the employer within seven days after the injury’s
occurrence , deterioration or complication takes place or the disease is
discovered even if his case does not prevent him from continuing to perform
his duty. If the injured person fails to report the injury to the employer, he
shall not be entitled to claim the daily allowance provided for in paragraph
(1) of Article (30) of the Law. If he reports the injury after the prescribed
period, he shall not be entitled to claim the allowance for the period preceding
the notification unless failure or delay to notify is caused by justifiable reasons
acceptable to the director of the appropriate office.

2. The employer, or the one who acts on his behalf, shall notify the appropriate
office of the employment injury for which first-aid is insufficient, within three
days after he is informed of the injury or takes note of its occurrence. In the
event of his delays in reporting the injury, without an acceptable reason left to
the discretion of the office director, the Organization shall ask him to pay the
daily allowance due to the injured person for the period preceding the
notification. The receipt of a notification of injury or a copy thereof by the
office from the treatment center or a notification of occurrence of injury from
any government agency, shall be deemed as a reporting of the injury.

3. In case the injury deteriorates or becomes complicated, the injured person

shall so notify the appropriate office in the place where he resides if he is not
assuming any employment or is assuming an uninsurable employment or is
assuming an insurable employment with an employer other than the one where
the original injury is sustained in the course of or by his work for him, within
the period and in accordance with the procedures set out in paragraph (1) of
this Article. The appropriate office shall notify the employer of the current
situation.
Section II

SECTION II MEDICAL CARE

ARTICLE (2)

With due regard to the provisions of Article (5) of these Regulations, the
employer shall, after providing the necessary first-aid, carry the injured
person, if necessary, to the treatment center already designated for him and
entered into contract with the Organization or to the public hospitals or health
centers belonging thereto.

ARTICLE (3)

1. Under medical care, treatment whatsoever shall be provided to the injured

person according to his physical condition and for as long as his condition
requires such treatment until he is fully recovered or his condition is
stabilized, as decided by the treatment center. The appropriate office shall
follow up the treatment and may by its physician or Medical Board, as
applicable, examine the patient at the treatment center to make the proper
decision as to the discontinuity of the need for the treatment as a result of
recovery or stabilization of the condition.

2. Treatment shall include the following:

a. Treatment of disfiguration resulting from the injury in cases decided by the

Primary Medical Board to be necessary in order to enable the injured person to
continue performance of his work satisfactorily, or because the disfiguration
affects his normal social life according to the Board's judgment.

b. Rehabilitation of the injured person and preparing him physically and

professionally if his condition so requires.

c. Provision and maintenance of artificial limbs and compensatory appliances

and the like and replacement thereof, as needed, within the Kingdom, if their
damage or breakage is not due to the injured person's negligence or his failure
to observe treatment instructions.

d. Treatment of illness which will result in the injured's recovery from the
employment injury as determined by the treatment body and approved by the
physician of the Office in respect of each case.

e. Treatment of illness that may be caused to the injured person sustaining an

employment injury during his admission to the hospital for the treatment of
the injury regardless whether such illness is caused by the complications of the
injury or results from the method of treatment or caused by infectious virus
arised out of his hospitalization for the treatment of his employment injury or
due to his exposure to casual incident during his hospitalization for that
purpose. The disability resulting from the said illness cases shall not be
considered as an employment injury unless the illness is caused by
complications of the injury.

f. Treatment of deterioration or complication of the injury notwithstanding that

the injured person may have not been in an insurable employment at the time
of occurrence of the injury.

ARTICLE (4)

1. The Organization shall take the necessary measures for the treatment of and
provision of medical care to the injured person at the hospitals, medical
centers and private clinics owned by it or entered into contract with for this
purpose. If the required medical treatment is not available at such places, the
Organization shall provide it at the public hospitals or its own health centers,
according to the available facilities.

2. The Organization may agree with any private medical center or any of the
employers who have special centers for the treatment of and provision of the
necessary medical care to their injured workers regardless whether or not such
bodies have entered into contract with the Organization. The treatment
expenses shall be reimbursed to such centers as agreed under contracts
concluded between them and the Organization or for each case separately as
per the prices agreed with the treatment centers entered into contract with the
Organization. However, where no medical facilities are available at such
centers for the treatment of certain injury cases, such cases shall be referred to
the Organization's contracted medical bodies where the treatment facilities are
available.

ARTICLE (5)

1. In emergency cases, the injured person may resort to a licensed private

treatment body such as a physician, private medical clinic or private hospital,
provided that his condition does not tolerate transporting him to the treatment
body already designated by the Organization, and that the injured person or
the employer shall notify the appropriate office to this effect within three days
from the date of resort to the said treatment body. The Office physician shall
decide whether or not an emergency case exists. The Office Director may, for
justifiable reasons, forego the delay in reporting.

2. The Organization shall have the right to transfer the injured person to the
treatment body already designated if his condition allows such transfer.

3. The Organization shall pay the expenses of the treatment of the injured
person at the treatment bodies referred to in paragraph (1) above within the
prices already specified by the treating body according to the Governor's
decision. The Governor may set out the maximum limits which shall be taken
into account in payment of the expenses of treatment of various injuries at the
said treatment bodies.
4. In exception of the provisions of paragraph (3), the Organization shall only
pay the treatment expenses payable under the said provisions within the
expenses limits prescribed by the treatment bodies owned by or entered into
contract with the Organization, in the following cases:

a. If notice is not served within the period prescribed in paragraph (1) above,
and the director of the appropriate office has not accepted the excuse for delay.

b. If the injured person refuses to move to the treatment body designated by

the Organization under the provisions of paragraph (2), above.

c. If the Organization discovers that the injured person's condition is not an

emergency case that necessitates resort to a treatment body other than those
already designated by it.

5. If the required medical treatment is not available at the treatment body

entered into contract with the Organization where the injured person is
admitted as an inpatient, he shall be transferred to such other treatment body
where the required treatment is available as specified by the Office Director
regardless whether the Organization has or has not entered into contract
therewith, in which case the Organization shall be responsible for the cost of
his treatment at the medical center to which he has been transferred.

However, if he has been transferred without the approval of the appropriate

Office Director, the treatment costs shall only be reimbursed by the
Governor's approval and within the rates of the medical centers contracted
with or owned by the Organization.

ARTICLE (6)

1. The Organization shall bear the expenses of the injured person's two-way
transportation from the workplace or his residence (as applicable) to:

a. the place where he receives treatment in accordance with the provisions of

these Regulations;

b. the place where the compensatory appliance is being installed and he is

being rehabilitated to use it ; and

c. the place where medical tests of any kind are conducted by the treatment
bodies, the Organization's doctor or the appropriate Medical Board.

2. If the appropriate Medical Board decides, on the basis of the opinion of the
treating body, that the injured person is in need of a companion, the
Organization shall bear the expenses of transportation and lodging of the
companion throughout the duration determined by the Board, notwithstanding
that the injured person may spend his period of temporary disability within
his country of residence so long as the Board has decided the necessity
therefore.
3. In exception of the provisions of paragraph (2), the expenses of
transportation and lodging of the companion throughout the period spent by
the injured person at the treatment body, shall not be payable unless the
Medical Board deems that the companion's stay is necessary.

4. If the condition of the injured person necessitates his treatment outside his
country of residence, he shall be entitled to reimbursement of expenses of
lodging for himself and his companion if he is forced to stay outside the
hospital or treating center and is established to have paid the expenses of such
lodging.

5. With due regard to the provisions of paragraphs (2) and (3), as a proviso for
payment of the transportation and lodging expenses in all cases, the
transportation and lodging shall have been based on the approval of the
appropriate authority designated by the Organization.

6. The Governor shall, by a decision to be made by him, determine the

transportation and lodging expenses of the injured person and companion and
the rules and procedures for payment thereof.

ARTICLE (7)

1. The injured person may, at the discretion of the Governor, be moved from
the treatment body to his home country if it is discovered that his physical
condition is hopeless and, a permanent total disability is existing and there is
a need for other's help in his movement and performance of his everyday life
activities, in which case the employer shall complete the formalities for
moving him and pay the expenses thereof. The Organization shall refund the
cost of the economy class air-ticket of each the injured person and his
companion in addition to the costs of such medical facilities as the Primary
Medical Board deems necessary for the injured person.

2. For the purposes of application of the provisions of Article (37) of the Law,
the Organization shall bear all the expenses for the transport of the body of the
insured person who dies as a result of an employment injury or the deceased
recipient of a permanent disability benefit, to his home country along with the
expenses of washing and embalming the corpse, the cost of the shroud, the
expenses of its transportation to the airport, the expenses of translation and
legalization of the required documents, the expenses of notifying the family of
the deceased, and such other expenses as the Governor may deem appropriate
to be borne by the Organization for the safe transportation of the body (1).
SECTION III

DAILY ALLOWANCE
ARTICLE (8)

1. If, as a result of an employment injury, the injured person is temporarily

disabled, he shall be entitled to a daily allowance for each day of work
disability including holidays and weekly rest days during the disability period
with due regard to the provisions of Article (1) of these Regulations. The
Organization shall pay such allowance in accordance with the provisions of
Article (30) of the Law upon receipt by the Office of the original Form 10 or
11/Occupational Hazards from the medical center or the alternative medical
reports, as the case may be. Payment shall be effected by the Organization's
Office or other agencies by such means as may be determined by the
Governor.

2. The temporary work disability shall be established by a medical report to be

issued by such medical authority as may be prescribed by the Organization,
and the injured person for whom the allowance is determined shall present
himself for medical examination whenever he is requested to do so by the
appropriate authority of the Organization.

3. The daily allowance shall fall due on and from the day immediately
following the date of occurrence of the injury or from the date of work
disability if it is later, without prejudice to the provisions of Article (1) of
these Regulations.

4. The daily allowance is payable to the injured insured person. However, if it

is established that the employer continued to pay him the wage despite of his
entitlement to the daily allowance and the injured person admits the same, the
daily allowance due for the period during which the wage continued to be paid
shall be paid to the employer.

5. The daily allowance shall be computed by dividing the monthly

contributory wage provided for in paragraph (1) of Article (11) of these
Regulations by the number of days of the month for or during which the
allowance is due.

ARTICLE (9)

The injured person may not combine the daily allowance with the wage. If it
is established that he has worked for a wage, whatsoever, during the period for
which he is entitled to receive an allowance, he shall not be paid this
allowance for this period, and the Organization shall have the right to recover
what he has unlawfully received in such case, without prejudice to the
provisions of paragraph (4) of Article (8).

ARTICLE (10)
1. The daily allowance in case of an injured apprentice shall be set on the basis
of the wage on which contributions are due for such apprentice under the
provisions of the Registration and Contribution Regulations.

2. If the injured person was working for more than one employer when he
sustained the injury, his daily allowance shall be computed on the basis of his
combined wages for which contributions to the Occupational Hazards Branch
have been paid.

ARTICLE (11)

1. The amount of the daily allowance shall be assessed at the rate of 100% of
the injured person's daily contributory wage for the month preceding the
month in which the injury was sustained or for the month in which he entered
into employment if the injury was sustained in such month, and no increase in
wage granted after the injury was sustained shall be regarded for any reason
whatsoever.

2. The amount of daily allowance referred to in the preceding paragraph shall

be reduced to 75% while the injured person is under treatment at the
Organization's expense at a treatment body or at any other place.

ARTICLE (12)

With due regard to the provisions of paragraph (2) of Article (11), the injured
person shall be entitled to the daily allowance throughout the period he is not
at work because of the installation, maintenance or replacement of the
artificial limb or any other reason, subject to an approval by the medical
authority designated by the Organization.

ARTICLE (13)

In case his injury deteriorates or becomes complicated and this results in his
temporary work disability, the injured person shall be entitled to the daily
allowance computed on the following basis:

1. If, at the time of deterioration or complication, the injured person is engaged

in an employment insurable under the Occupational Hazards Branch with the
previous or a subsequent employer, the daily allowance shall be computed on
the basis of his contributory wage for the month preceding the occurrence of
the said deterioration or complication. However, if it has occurred in the
month of his entry in the latest employment, the daily allowance shall be
computed on the basis of the wage for such month.

2. If the injured person is not engaged in an employment at the time of

occurrence of the deterioration or complication or is engaged in an
employment uncovered under the Occupational Hazards Branch, the daily
allowance shall be computed on the basis of the same wage taken as a basis
for the computation of the allowance payable for the original injury.
ARTICLE (14)

1. If the recipient of a permanent partial disability benefit sustains another

employment injury that renders him temporarily incapacitated for work and
entitled to a daily allowance, he shall have the right to combine both the daily
allowance and the benefit due for the previous injury, with due regard to the
provisions of the next paragraph.

2. The deterioration or complication shall be deemed as original injury, if it

causes the recipient of the benefit to return to the treatment body, in which
case the payment of the benefit due for the original injury shall be
discontinued with effect from the beginning of the month immediately
following his admission to the medical center, and payment of the daily
allowance shall be effected on that date. Payment of benefit shall be resumed
to him with effect from the day next to the day on which the entitlement to the
daily allowance is terminated.

3. If an injured person entitling to a daily allowance receives in addition to his

wage a pension for his contribution to the Annuities Branch pursuant to the
provisions of paragraph 4(a) of Article (38) of the Law, he shall continue to
receive the part of his pension he used to receive plus the daily allowance due
to him.

ARTICLE (15)

1. In the application of the provisions of paragraph (4) of Article (30) of the

Law, the decision issued by the office director for suspension of payment of
the daily allowance shall be based on a medical report by the treatment body
or the Organization's doctor.

2. If the injured person resumes his abidance by the medical instructions,

payment of his daily allowance shall be resumed by a decision to be made by
the office director on the basis of a medical report by the authorities referred
to in paragraph (1), above, without prejudice to the provisions of Article (38)
of these Regulations as to the amounts already suspended.

ARTICLE (16)

1. Entitlement to the daily allowance shall be terminated in the following cases

:

a. If the injured person regains his capacity for work and is completely cured
of his injury. This shall be determined by a decision of the treatment body or
the appropriate Medical Board.

b. If the Primary Medical Board decides that his treatment is completed after
his discharge from the hospital and his condition is stabilised with an inherent
permanent disability, be it total or partial.

c. If the injured person dies.

2. Entitlement to daily allowance shall not expire with the termination or
suspension of employment relationship for any reason during the disability
period .
SECTION IV

MONTHLY BENEFITS AND LUMPSUM COMPENSATIONS

ARTICLE (17)

1. For the purposes of application of the provisions of paragraph (4) of Article

(31) of the Law, the average monthly wage of the injured person on which the
assessment of benefit is based shall be one third of the total contributory
wages paid by the respective employer during the three months preceding the
month in which the injury was sustained. If his contribution period or periods
recorded with the said employer is or are less than that, the average monthly
wage for the recorded period shall apply.

2. In case the disability percentages are combined for repeatedly sustained

injuries and the injured person has accordingly been entitled to a monthly
benefit or lumpsum compensation in accordance with the provisions of
paragraph (2) or (3) of Article (33) of the Law, as applicable, the monthly
benefit or lumpsum compensation due shall be computed on the basis of the
average contributory wage for the three months preceding the month in which
the last injury is sustained. In case such average is found to be lower than that
taken as a basis for the computation of the first compensation, the new benefit
or compensation shall be computed on the basis of the higher average wage.

3. For the purposes of application of the provisions of paragraph (2) of Article

(33) of the Law, the lumpsum compensation already paid to the injured person
for his first injury shall be recovered by deduction from the monthly benefit
he is entitled to for the total disability percentages pertaining to the two
injuries. Such deduction shall be made by installments over a number of
months equivalent to that on which basis the lumpsum compensation has been
computed after deducting half the accumulated benefit amount which has not
been paid to him yet.

ARTICLE (18)

1. If the injury is deteriorated or becomes complicated, and the injured person

has consequently become eligible for a disability benefit, such benefit shall be
computed as follows:

a. Where the deterioration or complication has occurred while the contributor

is in employment insurable under the Occupational Hazards Branch, the
benefit shall be computed on the basis of the average contributory wage for
the three months preceding the original injury or the deterioration or
complication, whichever average is greater.

b. Where the deterioration or complication has occurred after the termination

of the employment relation or while the insured person is in another
employment that is not insurable under the Occupational Hazards Branch, the
benefit shall be computed on the basis of the average wage for the three
months preceding the original injury.
If the period recorded for either one of the two cases mentioned in the above
two paragraphs is less than three months, the average monthly contributory
wage for the recorded period shall apply.

2. If the deterioration or complication is suffered by an injured person who has

already received a lumpsum compensation and it has resulted in an increase in
the percentage of the disability which disability still remains under 50%, the
lumpsum compensation due to him shall be re-computed on the basis of the
average wage provided for in the preceding paragraph (1), and the previously
paid compensation shall be deducted therefrom.

ARTICLE (19)

1. The monthly benefit shall become due from the date on which payment of
daily allowance is stopped and permanent disability of the injured person is
established. In case the allowance is not due, the benefit shall become payable
on and from the first day of the month immediately following the date on
which the injured person's condition is finally stabilized with a permanent
disability established to be afflicted with by the injured person. Payment shall
be made in advance with effect from either of the said two dates, as applicable.

2. The case shall be established to have been stabilized with a resulted in

permanent disability by a decision of the Primary Medical Board after the
completion of the treatment and stabilization of the case, with due regard to
the provisions of paragraph (3) of Article (7) of the Medical Board
Regulations.

ARTICLE (20)

1. The permanent disability benefit shall be raised by 50% of the benefit

amount as assistance allowance if the injured is in need of the constant
assistance of others in the performance of his everyday life activities, provided
that the amount of such allowance shall not exceed SR 3,500 (three thousand
five hundred Saudi Riyals) per month. The injured person's need and
continuity of need of such assistance shall be established by the appropriate
Medical Board.

2. The said assistance allowance shall become payable on and from the first
day on which the disability benefit becomes due, unless the entitlement to the
allowance is decided at a later date, in which case it becomes payable on and
from the first day of the month following that in which the Medical Board
decides the entitlement thereto.

3. Payment of the allowance referred to in the preceding paragraph shall be

stopped in any of the following two cases:

a. If the payment of the disability benefit is stopped, in which case stoppage of

payment of the said allowance shall take effect on and from the date on which
the disability benefit is stopped to be paid.
b. If the Medical Board decides that the injured person's need of the constant
assistance of others no longer applies, in which case the stoppage of payment
of the said allowance shall commence from the beginning of the month
immediately following the month in which the Medical Board decides that the
reason for entitlement thereto no more exists.

4. If the Organization objects to the allocation of the allowance, its payment

shall be continued until a decision by the Appeal Medical Board is made and
notified to the appropriate office. The sums already paid shall not be
recoverable if the Board decides to cancel the allowance.

5. If the recipient of the benefit appeals against the decision of the Primary
Medical Board which rejects or suspends payment of the allowance and the
Appeal Medical Board decides that the allowance is due or continues to be
payable, the allowance shall be paid retroactively from the date on which it
becomes already due, if not already paid.

6. The assistance allowance shall become final if the need of the assistance of
others continues to exist until the completion of ten years from the date of
entitlement to benefit.

ARTICLE (21)

In the application of the provisions of paragraph (2) of Article (34) of the Law,
if as a result of the medical re-examination of a recipient of a permanent
disability benefit, the disability percentage is amended, due regard shall be
given to the following :

1. If the medical re-examination results in an amendment of the disability

percentage and the injured person remains entitled to monthly benefit, the
benefit amount shall be revised according to the new percentage of disability
with effect from the first day of the month immediately following the month in
which the Medical Board's decision amending the disability percentage is
issued. However, if the amendment of the percentage of disability renders the
amount of benefit to be reduced, and the decision issued by the Medical Board
to this effect is appealed against, the decision shall only apply after it becomes
final, and the benefit shall consequently be reduced with effect from the
beginning of the month immediately following the issuance of the relevant
decision of the Appeal Medical Board, with due regard to the provisions of
paragraph (1) of Article (24) of these Regulations.

2. If as a result of the medical re-examination, the benefit percentage becomes

less than 50%, payment of the monthly benefit shall be stopped and a
lumpsum compensation shall be determined for him according to the new
percentage of the disability, with due regard to the provisions of Articles (24)
and (25)of these Regulations .

3. The benefit or lumpsum compensation amended as a result of amendment

of the disability percentage, shall be computed on the basis of the average
monthly wage taken as a basis for the computation of the benefit prior to
amending the disability percentage.

4. If, as a result of the medical re-examination, the injured person is

established to have recovered, payment of the benefit shall be stopped with
effect from the first day of the month immediately following the issue of the
Medical Board's decision, without prejudice to the provisions of paragraph (1)
of Article (24) of these Regulations.

ARTICLE (22)

1. To continue payment of the monthly benefit due to the injured person or to

any of his family members because of loss of his earning capacity, the
beneficiary shall subject himself to the periodical examinations in such times
as may be determined by the appropriate Medical Board or concerned doctor.

2. For the purposes of application of the provisions of paragraph (2) of Article

(55) of the Law, the decision made by the director of the appropriate office for
the suspension of payment of benefit to the beneficiary who refuses to abide
by the treatment instructions or to submit to the periodical examination in the
prescribed times, shall be based on a medical report from the treatment body.
If it is established, by virtue of a similar medical report, that the beneficiary
resumes his abidance by the medical instructions warranted for his treatment
and submission to the periodical examination, payment of benefit shall be
resumed to him without prejudice to the provisions of Article (38) of these
Regulations.

ARTICLE (23)

The benefits of the family members of the insured person shall become due in
accordance with the provisions of Article (35) of the Law in the following
cases :

a. If the insured person dies as a result of an employment injury.

b. If a recipient of a permanent total or partial disability benefit dies.

c. If the conditions entitling the injured person to a permanent total or partial

disability benefit were satisfied before he died regardless of the reasons for his
death.

d. If the injured person dies before his condition is stabilized as a result of the
injury.

e. If the injured person dies as a result of the deterioration or complication of

the employment injury.

ARTICLE (24)
1. In case of an appeal against the assessment of a disability at the rate of 50%
or more, the permanent disability benefit shall be paid in accordance with a
decision by the Primary Medical Board pending a decision to be made by the
Appeal Medical Board and communicated to the appropriate office. If the
Appeal Medical Board decides to raise the amount of the benefit, the raise
shall be paid retroactively with effect from the date on which the benefit
becomes due, but if it decides to reduce the amount of benefit, the reduction
shall take effect from the beginning of the month immediately following the
date of issue of the Board's decision with no retroactive effect.

2. The lumpsum compensation entitled under the provisions of Article (32) of

the Law and paragraph (2) of Article (21) of these Regulations shall be paid
only after the decision of the Primary Medical Board becomes final after the
time limit for submission of an appeal lapses without appealing against such
decision. The receipt by the beneficiary of the lumpsum compensation shall
terminate his right to appeal. However, if any appeal against the said decision
is presented within the prescribed time limit, the compensation shall not be
paid until the decision of the Appeal Medical Board is issued.

ARTICLE (25)

The entitlement of the insured person or family members to the benefit shall
be terminated on any of the following dates, as applicable:

1. At the end of the last day of the month in which the appropriate Medical
Board decides the termination of the disability state, with due regard to the
provisions of paragraph (1) of Article (24) of these Regulations.

2. At the end of the last day of the month in which the beneficiary dies.

3. At the end of the last day of the month in which any of the other
requirements of termination of entitlement to benefit arises.

ARTICLE (26)

In case of failure to follow the procedures for reporting the injury in

accordance with the provisions of Article (1) of these Regulations or to
complete the treatment formalities with the knowledge and under the
supervision of the Organization, the insured person, who demands to have
sustained an employment injury, may not claim payment of allowance,
monthly benefit or compensation for such injury unless he submits along
with his claim such reports and documents as may be acceptable to the
Organization and evidencing that the injury meets the requirements provided
for in Article (27) of the Law, without prejudice to the provisions of Article
(57) of the law
SECTION V

PROVISIONS FOR APPEAL

ARTICLE (27)

For the purposes of application of the provisions of these Regulations, the

provisions for the procedures for submission and consideration of appeals
instituted in the Registration and Contribution Regulations shall be applied to
the appeals filed against the decisions issued by the Organization's agencies,
with due regard to the provisions of Articles (28) and (29) of these
Regulations.

ARTICLE (28)

Appeals as to whether or not a benefit or compensation is due and the decision

thereon pertinent to medical matters shall be referred to the Primary Medical
Board.

ARTICLE (29)

1. For the purposes of application of the provisions of paragraph (2) of Article

(53) of the Law, appeals against the decisions of the Primary Medical Board
shall be submitted to the Appeal Medical Board in accordance with the
provisions of the Medical Board Regulations.

2. If the Organization appeals against a decision by the Primary Medical

Board, the insured person shall be sent a copy of the appeal within fifteen days
from the date of submission of the appeal.
SECTION VI

GENERAL PROVISIONS

ARTICLE (30)

For the purposes of application of the provisions of these Regulations "the

injured" shall mean the insured person who sustains an employment injury
(employment accident or occupational disease) in accordance with the
provisions of Article (27) of the Law.

ARTICLE (31)

1. The Occupational Hazards Branch shall cover the employment injuries

provided for in Article (27) of the Law and occurring within the Kingdom of
Saudi Arabia.

2. The following shall be excepted from the application of the provisions of

the preceding paragraph :

a. The crews of the Saudi aircrafts: They shall continue to be insured under the
Occupational Hazards Branch while on board or on their way from the airport
to their place of residence or vice versa in the countries to which such aircrafts
fly outside the Kingdom. If any of the crew members is injured during that
time, the employer shall arrange for his medical treatment in the country in
which the injury is sustained, if necessary. The Organization shall refund him
the treatment expenses in accordance with the prices agreed with the treatment
bodies contracted with the Organization in the Kingdom and within the limits
determined by the Medical Board as to the requirements and duration of
treatment. Should the injured person continue to be in need of the treatment
after his return to the Kingdom, the employer shall move him to the medical
center previously designated by the Organization for the treatment of his
workers. The Organization shall pay the treatment expenses and daily
allowances due as provided earlier.

b. The crews of the Saudi land and sea means of transportation : They shall
continue to be insured under the Occupational Hazards Branch during the
international trips outside the Kingdom in accordance with such controls as
may be set by the Governor.

ARTICLE (32)

For the purposes of application of the provisions of paragraph (2) of Article

(28) of the Law, the injury shall be deemed to be an employment injury only if
it is sustained by a worker for whom a registration for insurance under the
Occupational Hazards Branch has been made and contributions have actually
been paid by the employer prior to sustaining the injury by the worker. As an
exception to this provision, the injury shall be deemed to be an employment
injury, if it has been sustained during the month in which the worker has
entered into employment or in the next month, provided that the employer
shall pay the contributions due.

ARTICLE (33)

1. The disease shall be considered an occupational disease if it is included in

the Schedule of Occupational Diseases and the occupation causing such
disease to the insured person is among the causative occupations listed in the
said Schedule. Other cases instituting evidence that the disease has been
caused by reason of work shall be presented to the Governor.

2. No benefit shall be payable for the occupational disease if it is established

by the Medical Board that such disease in its state has been contracted by the
injured person prior to the commencement of his contribution to the
Occupational Hazards Branch.

ARTICLE (34)

The Occupational Hazards Branch shall apply to the employment injuries

sustained by the insured person throughout his period of contribution
including the injuries sustained by the insured person on the last day of his
period of contribution specified in the form of employment termination.

ARTICLE (35)

Unless otherwise is provided for in these Regulations, the corresponding

provisions of the Annuities Branch Benefit Regulations and the decisions
amending thereto shall apply in respect of entitlement to daily allowances,
transportation and lodging allowances, monthly benefits and lumpsum
compensations payable under the Occupational Hazards Branch.

ARTICLE (36)

1. The Governor shall, by decision to be made by him, on the recommendation

of a medical board, determine the maximum period during which such
deterioration or complication shall have taken place in order to be covered by
the provisions of the Occupational Hazards Branch.

2. The Governor shall, by decision to be made by him on the recommendation

of a medical board, the maximum periods during which the symptoms of the
disease shall have appeared in order to be considered as an occupational
disease. This shall apply to the cases where the symptoms of the disease have
appeared on the insured person after he is no more engaged in an employment
or occupation included in the Schedule of Occupational Diseases.

ARTICLE (37)

The Governor may, for reasons of his own judgment, forego the recovery of
the treatment expenses and injury allowances paid by the Organization, if it is
established, after payment thereof, that the case is not an employment injury.
ARTICLE (38)

In the application of the provisions of Article (57) of the Law, due regard shall
be given to the following:

1. Claims for daily injury allowance, transportation and lodging allowances,

and deceased's family grant shall not be accepted after the expiry of one year
from the date of entitlement thereto, and claims for monthly benefits and
lumpsum compensations due for the injury shall not be accepted after the
expiry of five years from the date of entitlement thereto, unless there is an
excuse acceptable to the Organization in respect of any of such benefits.

2. If the appropriate office is duly notified of the injury, or the claim for
payment or the like is submitted within the time-limit provided for in the
preceding paragraph or the treatment of the injured person is effected by or
under the supervision or with the knowledge of the Organization, the right for
any of the benefits referred to in the preceding paragraph shall remain valid.

3. For the purposes of the application of the provisions of the two preceding
paragraphs, the details of the provisions set out in Article (40) of the Annuities
Branch Benefis Regulations pertaining to the application of the provisions of
Article (57) of the Law shall be followed.
SECTION VII

TRANSITIONAL PROVISIONS
ARTICLE (39)

1. For the purposes of application of the provisions of Article

(36) of the Law, the receipt by a non-Saudi insured person
sustaining an employment injury, or by his family members in
the event of his death, of the lumpsum compensation determined
in lieu of the benefit, shall terminate the relation between
him/them and the Organization.

2. The non-Saudi insured persons who have sustained employment

injuries or, in the event of their death, their family members
who have been eligible for monthly benefits before the date of
putting this Law into effect and have elected to continue
receiving the benefits by virtue of the decisions already
issued by the Board of Directors, as well as those residing
outside the Kingdom and have elected to continue receiving the
benefits by virtue of the said decisions, may be given by the
Organization the option either to continue receiving their due
benefits in accordance with the prescribed statutory
provisions or to receive, in lieu thereof, a lumpsum
compensation assessed in accordance with the provisions of
Article (36) of the Law. All this shall be done in conformity
with such rules as may be adopted by the Board of Directors.

ARTICLE (40)

1. For the purposes of application of the provisions of Article

(67) of the Law, due regard shall be given to the provisions of
the following paragraphs in respect of the Saudi insured
persons and their family members:

a. The Saudi insured person who, prior to the date of putting

the Law into effect, was entitled to monthly benefit for
permanent total disability under the old Law and his benefit
continued to be lawfully payable until the said date, the
benefit shall be raised to SR 1,500 (one thousand five hundred
Saudi Riyals) if it was less than the said amount, with due
regard to the relevant provisions followed in respect of the
pensions raised to the minimum by virtue of paragraph (1) of
Article (42) of the Annuities Branch Benefits Regulations.

b. If the monthly benefit is due for a permanent partial

disability, the benefit shall be re-computed on the basis of
being a percentage of the total disability benefit prescribed
under the preceding paragraph, if this renders the benefit to
be increased. In the event of death of the one who is entitled
to the said benefit after the new Law is put into effect, his
entitlement shall be distributed between his family members in
accordance with the provisions of the Law.

c. As regards to the benefits entitled to the family members

under the old Law and are still entitled to them on the date
the new Law is put into effect, the shares of the eligible
family members shall be re-determined on the basis of raising
their breadwinner's entitlement to SR 1,500 (one thousand
five hundred Saudi Riyals) if it is less than such amount. If,
thereafter, an individual share is found to be less than SR 300
(three hundred Saudi Riyals), it shall be raised to this much,
provided that the total amount of the shares of the family
members pursuant to this provision shall not exceed SR 1,500
(one thousand five hundred Saudi Riyals) or the average wage
taken as a basis for the computation of the benefit of the
breadwinner, whichever is greater.

2. The non-Saudi insured persons or any of their family

members, as applicable, who have licensed permit for permanent
residence in the Kingdom, and who, prior to putting these
Regulations into effect, were receiving monthly benefit under
the old Law and remained payable until the date of putting the
new Law into effect, shall be subject to the provisions of the
preceding paragraphs. The appropriate office shall regularly
verify the fulfillment of the permanent residence condition.

3. The provisions of the preceding paragraphs shall apply on

and from the beginning of the month immediately following the
date on which the new Law is put into effect.

4. The daily allowance payable to the Saudi or non-Saudi

insured person, who sustained employment injury under the old
Law, shall be raised to the amount provided for in the new Law
for the disability periods following the date of putting it
into effect.

5. The recipient of the monthly benefit for permanent total

disability under the old Law who subjects himself to regular
medical examinations under the new Law, and as a result of re-
examination, his disability degree is reduced or raised, shall
continue to be treated according to the provisions of the old
Law as to the determination of the kind and amount of the
benefit payable in the form of monthly benefit or lumpsum
compensation, as appropriate, subject to the new degree of
disability.
MEDICAL BOARD REGULATIONS

SECTION I

FORMATION OF MEDICAL BOARDS AND THEIR MEETING TIMES

AND PLACES

ARTICLE (1)

1. The Primary Medical Board referred to in paragraph (1) of Article (53) of

the Law shall be formed of at least two physicians of whom one shall
represent the Organization, if possible. One Board shall be set up at each
Region or District Office of the Organization. The Governor of the
Organization may merge the jurisdiction of two or more boards in one board
subject to the work volume and requirements.

2. The Appeal Medical Board referred to in paragraph (2) of Article (53) of

the Law shall be set up at the Head Office of the Organization and shall be
formed of at least three physicians of whom one shall represent the
Organization provided that he shall have not already recommended the
Organization's appeal against the decision of the Primary Medical Board
before it is submitted to the Appeal Medical Board.

3. Without prejudice to the provisions of the two preceding paragraphs, the

Governor shall select the members of the Primary and Appeal Medical Boards
from among the physicians of the Organization or Ministry of Health or other
qualified medical doctors either by deputation or contract, provided that one of
such Board members shall be specialized in occupational medicine, if
possible. If the insured person appeals against the decision of the Primary
Medical Board, he shall bear the transportation and residence expenses for
himself and his companion (if any) throughout the entire period of his appeal
before the Appeal Medical Board. In case the appeal is accepted, the
Organization shall bear the said expenses in accordance with the approved
rules.

ARTICLE (2)

1. The Appeal Medical Board shall meet at the Head Office of the
Organization, and may, if necessary, meet in such other place as may be
approved by the Governor.

2. The Primary Medical Board shall meet at the appropriate office and may, if
necessary, meet in such other place as may be approved by the concerned
Director.

3. The Primary Medical Board shall meet at least once a month so long as
cases are available to be presented thereto.
4. The concerned Director shall fix the times of the Board meetings by
coordination with the physicians who are Board members.

ARTICLE (3)

1. If a member of the Appeal Medical Board fails to attend the Board meeting
for any reason, and his absence has caused the number of the Board members
to be less than three physicians, the Governor shall proxy another physician to
replace him during his absence, provided that he shall not be from among
members of the Board which has issued the decision appealed against.

2. If a member of the Primary Medical Board fails to attend the Board meeting
for any reason, and his absence caused the number of the Board members to
be less than two physicians, the concerned Director shall proxy another
physician to replace him during his absence.
SECTION II
MEDICAL BOARD WORK RULES AND PROCEDURES

ARTICLE (4)

The following procedures shall be followed upon receiving a request for

establishment of an occupational or a non-occupational disability state of
an insured person :

1. The insured person’s case shall be presented to the Office physician

who may medically examine the insured person or refer him to the
appropriate medical body for undergoing the necessary medical
examinations before being presented to the Board. The insured person
shall submit his medical reports to the said Office physician.

2. Where all the medical reports and examinations deemed to be

necessary by the Office physician are completed, the Secretary to the
Medical Board shall refer the insured person to the Board on the date fixed
by the Office Director for the session and shall notify the insured person of
the fixed time of the session.

3. In exception of the provisions of the preceding two paragraphs, there

shall be no consideration of the employment injury cases for which five or
more years have elapsed without submission of an application and receipt
of an injury notification, unless the Governor's approval of the tolerance of
the delay is issued.

ARTICLE (5)

1. The Medical Board itself shall examine the insured person or beneficiary
or delegate one of the Board members or the one the Board authorizes to
do so and submit thereto a report, if the Board or Office physician is of the
opinion that the physical condition of the insured person or beneficiary
does not enable him to appear before the Board.

2. For the purposes of determining the jurisdiction of the Primary Medical

Board, if the insured person or beneficiary is present in a place falling
within the jurisdiction of another Medical Board, his case may be examined
by the Medical Board operating in the place where he is present.

3. In exception of the provisions of paragraph (1), the Medical Board may

consider the medical reports and laboratory tests as sufficient for the
purposes of establishment or continuity of the disability state in the
following cases:

a. If the case is appealed against to the Appeal Medical Board, the insured
person has left the Kingdom and the Board is satisfied with the adequacy
of the report submitted in respect of this case.

b. In case the medical reports required by the Medical Boards for the
establishment of the state of disability are submitted after the insured
person’s departure from the Kingdom as supplementary to previous
medical examination by the Medical Board.
c. If the insured person, who is afflicted with a non-occupational disability,
is only entitled to a lumpsum compensation.

d. In case of submission of the medical reports required by the Medical

Boards for periodical re-examination of the insured person or beneficiary.

e. Where the case of any family member is considered for the

establishment of his earning incapacity.

f. Such other cases as the Governor may permit the Board to be satisfied
with the medical reports without the requirement of the insured person to
appear before the Board.

4. In all cases referred to in sub-paragraphs (a), (b), (c), (d) and (e) of
paragraph (3), the Governor may require to have the insured person or
beneficiary subjected to medical examination under the supervision of the
Organization, if he deems such action to be necessary in any of the cases.

5. The Governor shall determine the conditions that shall be satisfied by

the medical reports and the tests that shall be made outside the Kingdom
in order to be considered as reliable.

ARTICLE (6)

1. The appropriate Medical Board may request the presence of a

competent Organization officer to be selected by the concerned Director to
explain the provisions of the Law and implementing regulations relevant to
the case being presented to the Board.

2. The Medical Board may call for the advice of a specialized medical
consultant, and the Secretary to the Board shall record the advice of such
consultant or attach his relevant report, if any. If the Board is not of the
opinion to adopt the consultant's advice, it should mention in detail the
reasons therefore, and the secretary shall record such reasons.

3. The Board may, as necessary, consult the representative of the Minister

of Labour and Social Affairs on the available job opportunities that may be
suitable to the condition of the insured person. The said representative
shall be invited by a decision from the concerned Director. The
representative of the Ministry of Labour shall be designated by virtue of
such regulating rules as may be issued by coordination between the
Organization and the Ministry.

4. The Medical Board may request making any laboratory tests or any
other tests if the insured person’s condition necessitates such tests in the
opinion of the Board.

5. a. The Organization shall bear the costs of the medical reports and
examinations made within the Kingdom so long as they are made upon the
request of the Medical Board.

b. The Organization shall not bear the costs of the medical reports and
examinations made outside the Kingdom except in such cases as may be
approved by the Governor.

ARTICLE (7)
1. without prejudice to the provisions of paragraph (2) of Article (39) of the
Law, the insured person’s non-occupational disability shall be established if
the conditions for establishment of disability in its insurance meaning
provided for in paragraph (6) of the said Article are met. The Medical
Board shall determine the starting date of disability to take effect on and
from the date of satisfaction of all statutory and medical conditions such
as the termination of the insurable employment of the insured person or
the reduction of his wage to less than one third.

2. The Primary Medical Board shall not determine the state of permanent
disability of the injured person as long as he is hospitalized for treatment.
It shall determine the state of permanent disability, if any, after the
required treatment is completed and the condition is stabilized and he is
discharged from the treating center.

3. In exception of the provisions of paragraph(2), if the treatment center

or the office physician discovers that the physical condition of the non-
Saudi injured person does not permit him to resume his employment and
that he must leave the hospital to his home country directly, the Medical
Board may examine him while he is in the treating center. If the Board is
satisfied that his condition is stabilized, it may issue its decision before he
is discharged from the treating medical center, in which case, the Office
shall coordinate with the employer and arrange for his travel to his home
country, so that his cash benefit will be paid to him in due course prior to
his departure. His receipt of such benefit shall be considered a final
settlement of all his entitlements due from the Organization. The
Governor shall set out the required arrangements and controls to ensure
that the Organization does not pay any medical expenses or additional
allowances beyond the time it has fixed for the travel of the injured
person.

ARTICLE (8)

The Medical Board may issue its decision on the establishment of the state
of non-occupational disability even after the insured person attains sixty
years of age in the following two cases:

1. If the case had been presented to the Board before the insured person
attained age sixty and the procedures had taken some time until he
reached such age.

2. If the case had been presented to the Board for the first time on the
date the insured person attained age sixty or thereafter and the Board had
been certain that the disability state was established before the insured
person reached such age.

ARTICLE (9)

1. If the symptoms of the occupational disease appeared after the

termination of the insurable employment, the case shall be presented to
the Medical Board to determine the relation of the disease with the
occupation he was exercising before he left employment, without prejudice
to the provisions of the Schedule of the Occupational Diseases.

2. For the purposes of considering a disease an occupational disease, the

Medical Board shall take into account that the occupation which caused
such disease to the insured person was one of the causative occupations
shown opposite to the respective diseases in the Schedule of the
Occupational Diseases.
 SECTION III
MEDICAL BOARD'S DECISIONS AND APPEALS AGAINST SUCH DECISIONS
ARTICLE (10)
1. The Medical Board shall adopt its decisions by majority voting
if its members are three or over and by unanimous voting if its
members are two only.
2. The Governor shall call another physician to join the Medical
Board membership to review the case if the Board fails to issue the
relevant decision by virtue of the provisions of paragraph(1),above.
3. The decision of the Board shall, in all cases, be reason-based.
However, if no reasons are instituted in the decision, the case shall
be presented again to the same Board to issue its final reason-based
decision on such case.
ARTICLE (11)
1. The insured person may appeal against the decision issued in
respect of his case by the Primary Medical Board, provided that he
shall submit his appeal to the Appeal Medical Board within twenty one
working days at the most from the date he is notified of the Board's
decision. The Governor may forego the insured person’s delay in
submitting the appeal, if such delay is due to justifiable reasons.
2. The Organization may appeal against the decisions issued by the
Primary Medical Boards, in which case it shall submit its appeal to
the Appeal Medical Board within twenty one working days at the most
from the date of issue of the Board's decision. The Organization
shall show the reasons for its appeal.
3. The Organization or the insured person may withdraw the appeal
submitted to the Appeal Medical Board at any time before the Board
issues its decision.
4. If the insured person appeals against the decision of the
Primary Medical Board, he shall bear the transportation and residence
expenses for himself and his companion (if any) throughout the entire
period of his appeal before the Appeal Medical Board. In case the
appeal is accepted, the Organization shall bear the said expenses in
accordance with the approved rules.
ARTICLE (12)
1. The Medical Board shall fix the times for the periodical medical
examination of the recipient of pension or benefit regardless of the
state of disability. However, the Board may extend the times of the
periodical medical examination in cases where the Board believes that
the case is, most likely, stabilized and neither recovery nor
improvement is expected, provided that, in occupational disability
cases, the injured person shall be re-examined at the beginning of
the fifth year from the starting date of issuance by the Primary
Medical Board of the first decision on the assessment of the state of
disability. In cases of non-occupational disability, the final
examination shall be made early before the insured person reaches age
sixty.
2. The Medical Board may subject the recipient of pension or
benefit to a medical examination after he reaches age sixty, in non-
occupational disability cases, and after the lapse of five years from
the allocation of benefit in occupational disability cases, in order
to verify whether the beneficiary is still in need of assistance of
others in performing his everyday life activities. The allowance
determined for this purpose shall become final by completion by the
insured person of sixty five years of age for non-occupational
disability and by the lapse of ten years from the date of allocation
of benefit for occupational disability.
SECTION IV
REMUNERATIONS OF MEDICAL BOARD MEMBERS AND LODGING AND TRANSPORTATION
EXPENSES

ARTICLE (13)

The physicians who are members of the
the GOSI physicians, or those who are
consultation, shall, in consideration
Boards, be paid fees to be determined
accordance with such standards as may
the Governor.
Medical Boards other than
called by the Board for
of their work with such
by the Governor in
be deemed appropriate by

ARTICLE (14)

The Governor shall, by decision to be issued by him, determine

the circumstances in which the insured person or any of the
family members who is called to appear before the Medical
Board, is entitled to reimbursement of the lodging and
transportation expenses and prescribe the sum of such expenses.
GENERAL PROVISIONS
ARTICLE (15)

For the purposes of application of the provisions of these Regulations, the

concerned Director shall be taken to mean the Director General of Insurance
Affairs with respect to the Appeal Medical Board and the appropriate office
Director with respect to the Primary Medical Board.

ARTICLE (16) The Governor shall secure the work environment and
requirements to the Medical Board to perform its function. He shall also
select a Secretary to the Board who shall be adequately aware of the
provisions of the Law and Regulations thereof and of the work procedures.
The Governor shall also prescribe the authorities and duties of the Secretary.

ARTICLE (17) Each Medical Board shall keep the records required for
entering the cases presented thereto showing, in particular, the date of referral,
the date of review, and the relevant Board's decision, and the date of referral
of such decision to the concerned Director.

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