São Paulo – Saudi Arabia approved a compensation payment of wages in the private sector. The goal is mitigating the effects of the COVID-19 pandemic on the private sector and Saudi workers. The total value amounts to SR 9 billion (USD 2.39 billion, Saudi Press Agency (SPA) reported last Friday (3).
The order provides that the employer will have the right to apply for compensation request to the General Organization for Social Insurance (GOSI) for his workers at 60% of the registered wage in GOSI for a duration of 3 months, at a maximum of SR 9,000 (USD 2,392) monthly. During this period, the employer shall be waived from committing to pay the monthly wages.
The compensation will cover 100% of Saudis working in establishments with five Saudi workers or less. It also covers 70% of Saudis working in establishments with over 5 Saudi workers or more, the minister of Finance and chairman of the GOSI, Mohammed Al-Jadaan, told SPA.
According to the government, the number of the compensation beneficiaries will reach 1.2 million Saudi workers.
The submission of the compensation request can start already, while payment will be made at the beginning of May. The order stipulates that the companies must resume the payment of wages right after the compensation ceases. The companies also shall continue paying wages for Saudi and non-Saudi workers who were not included in this compensation.
Translated by Guilherme Miranda
