Saudi King Salman has ordered the government to pay 60 percent of the salary of private employees affected by COVID-19.
The financial support will cover the next three months, Saudi Press Agency reported.
King Salman’s order is one of the major relief to private sector companies impacted by coronavirus pandemic, and in accordance with the conditions stipulated in the unemployment insurance system.
RELATED STORY: Saudi allocates Dh16.5 billion to help residents affected by COVID-19
Instead of terminating the contract of a Saudi worker, the employer can apply for compensation request with the General Organisation for Social Insurance. The subsidy will be for those receiving up to SR9,000 salary.
The employment wage relief would cost the Saudi government SR 9 billion ($2.39 billion).
The minister stated that the compensation will be paid in accordance with the SANID. All Saudi employees are required to contribute to “Sanid” scheme that would provide financial assistance to the unemployed.
READ ON: Saudi extends iqamas validity for 3 months
Finance Minister Mohammed Al-Jadaan said the move reflects King Salman’s continuous care and focus toward mitigating social and economic consequences of COVID-19 on the private sector, while taking the necessary measures to ensure the safety of citizens and residents, as well.
Al-Jadaan said that the royal order aims to limit the economic impact on the labor market, in addition to maintaining nationalization and growth through alternative means that contribute to keeping workers employed and providing them with compensation, in case of a job loss.
