The King of Saudi Arabia agreed to pay 60% of the salaries of private sector employees in order to reduce the consequences of Corona
King Salman bin Abdulaziz, on Friday, February 3, 2020, by issuing an extraordinary decree with the aim of reducing the economic consequences of the corona virus on the private sector workers of this country, ordered that instead of firing their employees, business owners can request from the social security insurance companies equivalent to 60% of the salaries registered in The insurance department will pay these employees up to 9 thousand rials ($2391) per month for 3 months.
Mohammad Abdullah Al-Jadaan, Minister of Finance of Saudi Arabia and Chairman of the Board of Directors of the Social Security Institute of this country, said that this royal decree is in line with King Salman’s attention to reducing the social and economic consequences of the spread of Covid-19 for private sector institutions and taking all necessary measures. It is to ensure the health of citizens and people living in this country, as well as to reduce the economic effects of Corona on the labor market by finding alternative solutions to prevent the unemployment of workers and to create an alternative source of income for those who lose their work rights.
The Saudi finance minister also said that this mechanism works based on the conditions set forth in the unemployment insurance system for the institutions mentioned in the royal decree. Saudi citizens who work in establishments that employ 5 or less Saudi citizens will be covered by 100% and Saudi citizens who work in establishments that employ more than 5 Saudi citizens will be covered by 70%. took The owners of these institutions are not required to pay the salaries of the employees who are covered by this royal decree, but they will not have the right to employ them during this period.
According to the statistics of the Ministry of Finance, one million and 200 thousand Saudi workers are covered by the royal decree, and the registration to receive these aids will start from April and the payment process will start from the first working day of May 2020, and the salaries of April 2020 will be given to the employees of all private institutions. who are unable to pay their employees due to the consequences of the corona virus, will be paid.
On March 20, 2020, the government of Saudi Arabia took immediate measures to support the private sector and to reduce the negative consequences of the Corona virus on small and medium-sized enterprises, it allocated 70 billion Saudi riyals in the form of forgiveness and delay in receiving some government expenses in order to provide sufficient liquidity for the continuation of activities. to provide the economy of the private sector. In addition, the Saudi Monetary Institute also allocated a support package of 50 billion riyals in this regard.
Law newspaper
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