Riyadh, MINA – King of Saudi Arabia’s Salman bin Abdulaziz on Friday issued a decree ordering the government to bear 60 persen of salaries for private employees.
More than 1.2 million Saudi employees are recorded in the private sector.
“This decision is as government assistance to the private sector so as not to be affected by the lockdown decision to prevent the spread of coronavirus (COVID-19),” said Saudinesia media.
The Royal Dextrit released on the Saudi Press Agency (SPA) website states, “The owner of the company has the right to apply for social insurance with a request for payment of monthly compensation for workers of 60 persen of the salary registered in social insurance for three months, a maximum of 9 thousand riyals per month, with a total value of up to 9 billion riyals. ”
Minister of Finance Muhammad Al-Jad’aan said this new aid mechanism follows the requirements set out in the unemployment insurance system (Sanid).
All companies included in the Royal Dextrit include all Saudis working in private companies. This includes a company with five or fewer Saudi workers, or that meets the percentage of 70 percent of Saudis working for a company.
Al-Jad’aan added the provision included a release of the company from the obligation to pay monthly salaries to beneficiaries in accordance with this decree.
At the same time, the company has no right to force its employees to work during the compensation period.
Around 1.2 million Saudis working in the private sector will feel this policy. Private companies can start applying for salaries in April 2020, for the next three months.
Last March, the Saudi Government has budgeted 70 billion riyals to support the SME sector and economic activities most affected by the consequences of this pandemic. (T/RE1)
Mi’raj News Agency (MINA)