The Social Security Fund in Tripoli announced the details of the approved mechanism for calculating mandatory and optional retirement pensions, as part of efforts to enhance transparency and facilitate understanding of subscribers’ financial rights.
Mandatory Retirement
- Granted upon reaching the legal working age and completing a service period of no less than 35 years.
- The pension is calculated at a rate of 80% of the average total salary during the last 36 months.
- Example: If the average monthly salary is 2,000 dinars, the pension will be 1,600 dinars.
📌 Optional Retirement
- Allows an employee to retire after completing 20 years of service.
- The pension is calculated at a rate of 50% of the average total salary during the last 3 years.
- Example: If the average monthly salary is 2,000 dinars, the pension will be 1,000 dinars.
General Formula for Service Between 20 and 35 Years
- For the first 20 years: Pension = Average Salary × 0.5
- For each additional year after 20 up to 35 years: Additional Pension = Average Salary × 0.02 × Number of Additional Years
Illustrative example: An employee who retired after 30 years of service with an average salary of 2,000 dinars:
- First 20 years: 2,000 × 0.5 = 1,000 dinars
- 10 additional years: 2,000 × 0.02 × 10 = 400 dinars
- Total Pension = 1,400 dinars
Pension Percentage Table by Years of Service
| Years of Service | Pension Percentage |
|---|---|
| 20 years | 50% |
| 25 years | 60% |
| 30 years | 70% |
| 35 years | 80% |
(With a gradual increase of 2% for each additional year between 20 and 35 years of service)
Minimum Pension
The Fund confirmed that any pension calculated to be less than 900 Libyan dinars is automatically raised to this minimum to ensure a dignified life for retirees.
Tripoli
Tripoli is the capital and largest city of Libya, with a history dating back to the 7th century BC when it was founded by the Phoenicians. It later came under Roman, Byzantine, Arab, Ottoman, and Italian rule, which is reflected in its historic architecture, such as the Red Castle (Assaraya al-Hamra) and the old medina.
Social Security Fund
The Social Security Fund is a public institution established to provide financial protection and welfare benefits, such as pensions and healthcare, to eligible citizens. Its history typically involves creation by national governments in the 20th century, often as part of broader social welfare reforms to mitigate risks like old age, disability, and unemployment.
