Saudi GOSI Pension Guide 2026, Eligibility and Calculation

Saudi Arabia's General Organization for Social Insurance (GOSI) was established in 1389 AH (1969 CE) and underwent a major reform in 2024 raising the statutory retirement age. This guide explains the two parallel systems now in force, the calculation formula, and rules for early retirement, disability, and survivor benefits.

Two Parallel Systems

The 2024 retirement reform (Royal Decree M/273 of 1445 AH) created a dual system based on the subscription start date:

| Criterion | Old System | New 2024 System | |---|---|---| | Who it applies to | Anyone enrolled before July 1, 2024 | Anyone enrolled after that date | | Base retirement age | 60 (men) / 55 (women) | 65 for all (with transition phase) | | Contribution minimum | 25 years allowed early retirement | Graduated by birth year | | Pension formula | Avg wage × years × 2.5% | Graduated rates over wage brackets | | Cap | 100% of average wage | 100% of average wage |

The rationale: extend active working life in line with rising life expectancy and ease long-term pressure on the insurance fund.

Pension Formula (Old System)

For legacy subscribers (pre-2024), the base formula is:

Monthly pension = (average contributory wage over last 24 months) × (years of contribution) × 2.5%

Worked example: 30 years of contribution with a 24-month average wage of 10,000 SAR:

• Pension = 10,000 × 30 × 2.5% = 7,500 SAR/month

Pension cap: cannot exceed 100% of the average wage, so someone with 40 years of contribution reaches the maximum, above which the pension does not grow further.

Early Retirement (Old System)

To retire before the statutory age:

• Core requirement: at least 25 years of contribution
• Age: any age is possible after completing the required years
• Reduction: a reduction coefficient applies based on the age gap between early retirement and the statutory age, per a unified schedule in the regulations

Example: someone who contributed 25 years and retired at 45 loses roughly 15–20% of the pension to offset the additional years of payout.

Disability Pension

Paid to a subscriber who loses ability to work before retirement age. Two types:

1. Non-Work-Related Disability

Requires:

• Active GOSI contribution (no fixed minimum, but the medical committee assesses each case)
• A certified medical report proving total or partial disability
• Complete inability to work

The pension is calculated based on average wage × actual years + notional years to complete the minimum entitlement.

2. Work-Related Disability

Paid without any minimum contribution requirement and is not subject to the reduction schedule. The medical committee determines the disability percentage and the pension is calculated accordingly.

Survivor Benefits

Share allocation per the Social Insurance Law:

| Beneficiary | Base share | |---|---| | Widow | Full share | | Son under 21 (or student under 26) | Full share | | Unmarried daughter | Full share | | Parents | Share if financially dependent |

Shares are recalculated when the beneficiary count changes (daughter marries, son turns 21, death). When no eligible beneficiary remains, the pension stops.

Contributory Wage — What Counts

The wage base for pension calculation includes:

• Full basic wage
• Housing allowance if paid regularly and consistently
• Transport allowance if a regular part of the monthly wage
• Fixed work-nature allowance

Excluded:

• Irregular incentive bonuses
• Variable commissions
• Overtime pay
• Discretionary annual bonuses

Contributory wage cap: 45,000 SAR per month. Amounts above the cap do not count toward the pension calculation and no contribution is due on them.

Checking Your Current Balance

Via Tamennati you get:

• Actual months of contribution
• History of previous employers
• Monthly recorded wages
• Expected pension calculator — based on your real data

The official Tamennati calculator is more accurate than any external one because it knows your recorded wages and applies your system (old or new) automatically.

Additional Questions

Can I combine GOSI pension with end-of-service gratuity? Yes. The gratuity is paid by the employer under the Labor Law; the pension is paid by GOSI under the Social Insurance Law. There is no conflict.

What if my contribution had gaps? Each contribution period counts independently and is summed. Gaps do not erase prior periods, but the 24-month wage average is drawn from the final 24 months of actual contribution.

Can I pay contributions for prior years (buy service)? Yes in specific cases (prior military service, work outside the Kingdom before enrolling). Check Tamennati for the exact criteria.

Official Sources

• General Organization for Social Insurance, gosi.gov.sa
• Saudi Social Insurance Law, Bureau of Experts
• Royal Decree M/273 of 1445 AH, retirement system reform
• Tamennati portal

Read also: End-of-Service Gratuity Calculator · Saudi Salary Dates 2026 · Employee Rights Under Saudi Labor Law