Important clarifications from the Social Security Fund for calculating the retirement pension in Libya

Clarifications of interest to you regarding the calculation of the pension value according to what was reported by the Social Security Fund in Libya.

1 – Compulsory retirement: When you reach the legal age and exceed the period of work, the value of your pension from the security is 80% of your current average salary (total) in the last three years before retirement.

Example: If your average salary is 1,000 dinars, your pension from security will be 800 dinars…

The average of your current salary (total) is calculated over the last 3 years that preceded retirement, that is, by adding the last 36 salaries you received and then dividing by the number 36.

2 – Optional retirement: When you reach the required years of work, which are 20 years, the value of your pension from the security will be 50% of your current average salary in the last three years before retirement.

Example: If your average salary is 1,000 dinars, your pension from security will be 500 dinars…

As for the general equation for calculating the value of the pension for what is in between, it is:

For the first twenty years: (current average salary x 0.5)
And from the first twenty years to thirty-five years: (your average current salary x 0.02 x the remaining years of work), meaning the increase is 2% for each year..

An example of this: If your average salary is 1,000 dinars and you voluntarily retire after 30 years of work, your retirement salary for the first twenty years will be 1,000 x 0.5, which equals 500 dinars plus 10 years x 1,000 x 0.02, which equals 200 dinars.
So your total pension from the guarantee becomes 500 + 200 = 700 dinars..

For further clarification, the calculation of the pension value in a simplified manner will result from the following equation:
20 years 50%, 21 years 52%, 22 years 54%, 23 years 56%, 24 years 58%, 25 years 60%, 26 years 62%, 27 years 64%, 28 years 66%, 29 years 68%, 30 years 70%, 31 years 72%, 32 years 74 %, 33 years old 76%, 34 years old 78%, 35 years old 80%..

(Noting that the minimum security pension is 450 dinars, meaning that if your pension is calculated by this equation and it results that the value of the pension will be less than this value, you will be raised to this limit and you will receive 450 dinars).