Khaberni - Minister of Labor, Khaled Al-Bakkar, said on Tuesday that the results of the eleventh actuarial study of the financial position at the Social Security Corporation showed that the first breakeven point would be achieved in 2030, emphasizing the need to take early measures to push this point further in time and enhance the financial sustainability of the institution.
In his statements to “Al Mamlaka channel,” Al-Bakkar indicated that the proposed amendments to the social security law would postpone the first breakeven point to 2042, pointing out that there should have been amendments to the social security years ago, but the previous cosmetic amendments led to approaching the deadlines and breakeven points.
He added that the study was conducted based on the provisions of Article (18/A) of the Social Security Law, which obliges the institution to assign a certified international expert to prepare a periodic actuarial study to examine its financial position and assess its ability to meet its obligations towards members and retirees.
He pointed out that study number (11) was based on a comprehensive database covering the period between 2013 and 2023, noting that the actuarial expert presented a set of recommendations to maintain the robustness of the financial position and enhance its sustainability in the medium and long term.
He clarified that "the first breakeven point" means the equality of revenues from social security subscriptions with expenses represented by retirement salaries, describing this phase as the most sensitive and important due to its financial implications that require cautious and proactive management.
He confirmed that reaching the breakeven point in 2030 requires working on reviews and well-studied reforms that would extend the financial stability of the institution for at least an additional ten years, according to the recommendations of the actuarial expert, ensuring the sustainability of the social protection system and protecting the rights of members and retirees.
Al-Bakkar pointed out that the government views the results of the study as a strategic planning tool, enabling decision-making based on scientific foundations, and enhancing confidence in the institution's ability to continue performing its national role.
The Council of Ministers decided to approve the reasons for the draft law amending the Social Security Law for 2026.
