JEDDAH — Custodian of the Two Holy Mosques King Salman on Friday ordered the government to bear 60 percent of the Saudi employees' salaries for a period of three months amounting up to SR9 billion ($2.39 billion), Saudi Press Agency reported. The financial support, which provides a major relief to the private sector companies impacted by coronavirus pandemic, will, however be in accordance with the conditions stipulated in the unemployment insurance system (SANID). According to the royal order, the employer instead of terminating the contract of a Saudi worker can apply for compensation request with the General Organization for Social Insurance (GOSI), claiming 60 percent of the registered wage for a duration of three months, at a maximum of SR9,000 monthly. Lauding the royal order, Finance Minister Mohammed Al-Jadaan, who is also the chairman of the GOSI said the move reflects King Salman's continuous care and focus toward mitigating social and economic consequences of COVID-19 on the private sector, while taking the necessary measures to ensure the safety of citizens and residents, as well. Al-Jadaan said that the royal order aims to limit the economic impact on the labor market, in addition to maintaining nationalization and growth through alternative means that contribute to keeping workers employed and providing them with compensation, in case of a job loss. The minister stated that the compensation will be paid in accordance with the SANID, in which Saudi workers have contributed, during their working time-span. SANID covers 100 percent of Saudis employed in companies that have five workers or less and covers up to 70 percent of firms where the number of Saudi workers exceeds five. Commenting on the development in a tweet, Commerce Minister, Majed Al-Qasabi, who is also acting minister of media, said that the royal order signifies that the Kingdom cares for its citizens and private sector and its needs on a priority basis.
