GOSI to increase pension contributions for new employees as of July 1

The General Organization for Social Insurance (GOSI) announced that the new Social Insurance Law issued by Royal Decree No. (M/273) will be implemented as of July 1.

The new law will apply exclusively to newly hired civilians in both the public and private sectors who have no previous contribution periods prior to the law’s effective date of July 3, 2024, GOSI said.

This includes a gradual increase in pension contributions, starting from the second year of the law’s implementation until the fifth year. The increase will be 0.5% annually, reaching a cumulative increase of 2%. Accordingly, the total contribution rate will rise to 11% (shared between the employee and employer), up from the current 9%.

The authority explained that the new law will expand the scope of insurance coverage to include more categories. It will also provide flexibility for employees moving between the public and private sectors without affecting their insurance entitlements.