King Salman of the Kingdom of Saudi Arabia (KSA) has issued a royal decree ordering the allocation of SR9 billion ($2.4 billion) to compensate citizens working in facilities affected by repercussions of the pandemic.
The royal decree exempts Saudis working in the affected private sector facilities from Articles 8, 10 and 14 of the Unemployment Insurance (Sanad) scheme.
Employees, it says, are to be given a monthly compensation of 60 percent of the registered wage in social insurance for three months with a maximum of SR9,000 monthly.
Finance Minister and Chairman of the Board of Directors of the General Organization for Social Insurance Mohammed Al-Jadaan said that the support mechanism will work as stipulated in the Sanad scheme for facilities included in the royal decree.
This covers 100 percent of Saudis working in facilities employing five or less and up to 70 percent in facilities that employ more than five.
The employer will be exempted from paying the monthly salary for beneficiaries during the compensation period as per the decree.
The facility is not entitled to force employees to work during the compensation period.
The number of people qualified to benefit from the compensation exceeds 1.2 million citizens.
Citizens can apply for compensation in the current month of April. Payment will start at the beginning of May.
The decree requires that facilities resume paying employees as soon as the compensation ends.
The facilities should also continue the payment of salaries for employees (Saudis and non-Saudis) who are not included in the compensation.
