According to the Public Institute for Social Security, there are 13,676 individuals who are insured and have served for more than 30 years but have not yet retired. Out of this group, 7,397 are under the age of 55.
In response to a question posed by MP Dawoud Maarafi about the deduction of subscription amounts from employees, Minister of Finance Fahd Al-Jarallah submitted a letter from the institution’s acting director, Ahmed Al-Thunayan.
In the letter, Al-Thunayan clarified that adherence to the provisions of the Social Insurance Law is compulsory and is contingent on the existence of an employment relationship between the insured individual and their employer.
This requirement is not limited to a specific time frame, and the employer is obligated to pay the required contributions in accordance with the law, whether it pertains to employer obligations or deductions from the insured person’s salary, for the entire duration of the insured person’s employment.
Al-Thunayan further explained that for individuals who have exceeded the maximum period for eligibility for a retirement pension (30 years), a retirement reward is granted to them, as specified in Article 25 of the Insurance Law. This reward is also provided for the actual contribution period that goes beyond the required limit. The maximum pension stated in Article 19 of the law is given alongside the retirement pension.
In the event of the insured person’s passing away, this reward is distributed in full to those entitled to the pension, according to their shares. If there are no such beneficiaries, it is disbursed to the legal heirs. The insured person also benefits from this period when calculating the supplementary pension.
Regarding the procedures followed by the PIFSS when an employee retires after deductions have been made for a longer period than required, Al-Thunayan clarified that the collection of contributions ceases upon receiving form 103, which signifies the end of the insured person’s service.
It’s important to note that the employer’s responsibility to pay contributions is tied to the existence of an employment relationship, and it is not limited to a specific timeframe. This aligns with the provisions of Article 2/A of the Amiri Order of Law No. 61/1976, which promulgates the Social Insurance Law, as well as Article 12 of the Social Insurance Law.
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