Saudi Arabia's King Salman has issued a royal decree ordering the allocation of SR9 billion ($2.4 billion) through employment insurance (Saned) to mitigate the effects of Covid-19, on the private sector and Saudi workers, who may lose their jobs because of this crisis.
The decree exempts Saudi workers in the private sector firms that have been impacted by the pandemic, from articles 8, 10 and 14 of unemployment insurance (Saned), said a saudi Press Agency report.
The employer has the right, instead of terminating the contract of a Saudi worker, to apply for compensation request to the General Organization for Social Insurance (GOSI) for his workers, at 60% of the registered wage in GOSI for a duration of three months, at a maximum of SR9,000 monthly, with a total value of SR9 billion, according to the Royal Order.
Mohammed Al-Jadaan, the Minister of Finance and Chairman of GOSI, said the order comes as continuation of the King’s care and attentiveness towards mitigating social and economic consequences of Covid-19 on the private sector, while taking the necessary measures that ensure the safety of citizens and residents, as well.
The order aims to limit the economic impact on the labour market, in addition to maintaining nationalisation and growth through alternative means that contribute to keeping workers employed and providing them with compensation, in case of a job loss.
Al-Jadaan stated that the compensation will be paid, in accordance with the unemployment insurance scheme, in which Saudi workers have contributed.
The compensation will cover 100% of Saudis working in establishments with 5 Saudi workers or less. It also covers 70% of Saudis working in establishments with over 5 Saudi workers or more, he said.
Copyright 2021 Al Hilal Publishing and Marketing Group