King Salman says government will pay 60% of citizens’ wages in private sector through SANED

Saudi Arabia’s King Salman ordered payment of SAR 9 billion in financial support to over 1.2 million citizens working in the private sector facilities, which are hit by the rapid spread of coronavirus, the Saudi Press Agency reported.

The government will cover 60% of Saudi employees’ wages registered in the social insurance system, through the unemployment insurance (SANED) for three months at a maximum limit of SAR 9,000 monthly.

The Custodian of the Two Holy Mosques ordered exempting the Saudi citizens working in the private sector facilities, which are hit by the rapid spread of coronavirus, from Articles 8, 10 and 14 of the unemployment insurance law.

Accordingly, business owners will apply to the General Organization for Social Insurance (GOSI) to pay monthly compensation for Saudi employees at 60% of their salaries for three months at a maximum limit of SAR 9,000 monthly.

Application for the compensation will start in April, while the disbursement will begin on the first business day next May.

The compensation mechanism is implemented through SANED, for the facilities covered by the Royal Decree. It will cover 100% of Saudis working in the establishments employing five Saudi workers and 70% of Saudis working in the establishments, where the number of Saudi workers exceeds five.

Business owners will be exempt under the royal order from paying the monthly salaries of beneficiaries. Those establishments will have no right to force employees to work throughout the compensation period.

The royal order decreed that business owners would resume paying salaries as soon as compensations are halted.

Employers are also obligated to pay the wages of Saudi and non-Saudi workers not covered in the compensation.