The Social Insurance System in the Kingdom of Saudi Arabia has undergone significant updates that took effect on July 3, 2024 (Dhu al-Hijjah 27, 1445 AH). These changes aim to enhance the sustainability of the system and expand its coverage. To further understand these developments, let's review the key details related to contribution rates and how they impact new and existing subscribers.
Who is covered by the new Social Insurance System?
New entrants to the labor market who do not have contributions to the Civil Retirement System or Social Insurance prior to the effective date of the new system.
As for existing subscribers before July 3, 2024, they will continue to be subject to the provisions of the previous systems (the Civil Retirement System or the Social Insurance System) regarding contribution rates and conditions.
New Updates to the Social Insurance System in the Jisr System
1. 21.5% Company Contribution
Meaning: This option indicates that the entire contribution percentage (21.5%) will be borne by the company alone. No employee contribution is required in this case.
2. 11.75% Company Contribution and 9.75% Employee Contribution
Meaning: This option divides the total contribution (11.75% + 9.75% = 21.5%) between the company and the employee.
Company Contribution: 11.75% of the employee's salary.
Employee Contribution: 9.75% of the employee's salary (usually deducted from their salary).
3. 11% Company Contribution and 9% Employee Contribution (without SAND)
Meaning: This option is similar to the previous one, but specifies that these percentages do not include the SAND contribution.
Company Contribution: 11% of the employee's salary.
Employee Contribution: 9% of the employee's salary.
Total Contribution (without SAND): 20% (11% + 9%).
Note on "SAND": "SAND" is the unemployment insurance system in the Kingdom of Saudi Arabia (the unemployment insurance system). When you mention "without SAND," it means that these percentages do not include the SAND share (which is typically 1% for the company and 1% for the employee out of the total 2% SAND). This indicates that these contributions may be for retirement or another type of insurance.
4. 2% Company Contribution "Retired Employee"
Meaning: This option is intended for a special case where the employee is already retired (and receiving a pension) but has returned to work. In this case, the social insurance contribution is often much lower and borne solely by the company.
Company Contribution: 2% of the employee's salary.
Employee Contribution: 0% (no contribution for a retired employee returning to work).
5. 12.25% Company Contribution and 10.25% Employee Contribution (according to the new update on July 3)
Meaning: This option is another split of the total contribution.
Company Contribution: 12.25% of the employee's salary.
Employee Contribution: 10.25% of the employee's salary.
Total Contribution: 22.5% (12.25% + 10.25%).
6. 11.5% Company Contribution and 9.5% Employee Contribution (without Supplement) (according to the new update on July 3)
Meaning: This option is similar to Option 3, but with slightly different percentages.
Company Contribution: 11.5% of the employee's salary.
Employee Contribution: 9.5% of the employee's salary.
Total Contribution (without Supplement): 21% (11.5% + 9.5%).
7- 22.5% Company Contribution
Meaning: This option means that the entire contribution (22.5%) will be borne by the company alone.
Steps to edit an employee's social insurance registration information:
1. The user logs into the employee's file.
2. Go to the "Salary and Financial" tab.
3. From the "Insurance", click "Edit."
4. From the "Contributions" field, the user selects the appropriate contribution for the employee.
5. Click "Save Changes."
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