With reference to the inquiry regarding the status of a government employee who is on a five-year leave without nominal salary, and the effect of that status on the employee’s inclusion in social security should they work in the private sector, we wish to set out our legal opinion in light of the relevant provisions and legislation, as follows:
First: Legal Basis
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Article (17/a/b) of the Unified Retirement Law No. (9) of 2014 (as amended) provides:
“A monthly amount of (25%) shall be deducted from the salary of the government employee as retirement withholdings; the employee shall bear (10%), and the public treasury shall bear (15%).” -
Article (31/Sixth) of the Federal Budget Law No. (1) of 2019 authorizes:
“The employee, while enjoying the five-year leave, may work in the private sector, by way of exception from the provisions of the State and Public Sector Employees Discipline Law No. (14) of 1991 (as amended).” -
Article (27/First) of the Federal General Budget Law No. (13) for the years 2023–2024–2025 provides:
“State employees may take ordinary or special leave for five years with full nominal salary, pursuant to regulations set by the sectoral authorities, and they may work in the private sector during the leave period without prejudice to their retirement rights.”
Second: Legal Analysis
Based on the foregoing, the legal texts are understood to mean the following:
- A government employee is entitled to a five-year leave with nominal salary, as stipulated in the referenced budget laws, while retaining full retirement rights.
- The cited provisions permit the employee to work in the private sector during the leave period without any legal violation, pursuant to the exceptions contained in the 2019 and 2023 budget laws.
- An employee on the five-year leave is not covered by the private-sector social security system, because retirement withholdings are deducted from their government nominal salary and their retirement rights remain preserved under the law.
- It is sufficient to notify the Ministry of Labor and Social Affairs accordingly, attaching:
- A copy of the employee ID.
- A copy of the administrative order granting the (five-year) leave.
- No additional social security contributions are to be collected within the private sector, as there is no legal basis for doing so.
Third: Conclusion
A government employee who is on a five-year leave with nominal salary is in a legally sound position when commencing work in the private sector and is not required to make any additional contributions to the Social Security Fund, so long as the retirement withholdings remain in force and rights are guaranteed under the above-referenced provisions.
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