Posted by : Aahil Shaik Friday, April 3, 2020
Saudi Arabia's King Salman orders to bear 60% of Salaries of Saudi Private sector Employees amid Coronavirus
Saudi Arabia's King Salman bin Abdulaziz Al Saud, The Custodian of the Two Holy Mosques orders his government to bear 60 percent of the salaries of Saudi employees through Sanad system in private sector which was hit by the spread of novel coronavirus. Trending : Curfew in Dammam, Qatif and Taif to start at 3 PM
This major economic package in Saudi Arabia to help with the financial impact of comapnies after the global pandemic on private sector establishments.
- The system of insurance against work failure, so that employer instead of terminating the contract of the Saudi worker is entitled to apply for social insurance by applying for a month compensation to his Saudi employees at 60% of their salary recorded in social insurance for 3 months, upto a maximum of 9000 Saudi Riyals per months, which total values up to 9 billion riyals. Recommend : 24 Hours Curfew in Makkah and Madina amid Coronavirus
- The Finance Minister thanked King Salman and invited all private companies to protect their employees and also find ways to avoid firing anyone during the outbreak of Covid-19.
- Nearly 1.2 million Saudi is going to be covered under this package and the financial authorities would help in monitoring the measure in case it need to be extended more than 3 month said Al Jadaan Finance Minister.
- This measure will begin in April with first payments sent to companies by May 3, In the system SANAD program, for the facilities covered by the Royal Order, where it covers 100% of Saudis working in the establishments that have (5) Saudi workers or less, and up to 70% of Saudis working in Establishments where the number of Saudi workers exceeds (5) workers. See Also : Procedure to extend exit re-entry visas of Expats outside Saudi Arabia
- With the exemption of the employer from the obligation to pay the monthly wage to the beneficiaries in accordance with the royal order, and the establishment is not entitled to oblige the worker to work during the period of payment of compensation.
- The establishment is obliged to continue to pay the rest of the workers (Saudi and non-Saudi) who are not covered by this compensation.
- On March 20th, the Government of the Custodian of the Two Holy Mosques approved urgent initiatives to support the private sector, especially small and medium-sized enterprises and economic activities most affected by the consequences of this pandemic, with the size of initiatives worth 70 billion riyals, which consisted of exemptions and postponement of some dues. Most Viewed : King Salman orders free treatment of Coronavirus for all in Saudi Arabia including illegal residents
- The government to provide liquidity to the private sector to be able to use it in the management of its economic activities, in addition to the support program announced by the Saudi Monetary Agency for banks, financial institutions, and SMEs amounting to 50 billion riyals at the current stage.