Saudi Arabia stops supporting its citizens in facilities affected by Corona

Saudi Arabia stops supporting its citizens in facilities affected by Corona
Saudi Arabia stops supporting its citizens in facilities affected by Corona

What is the “SANED” initiative?

An initiative that requires the government to bear 60 percent of the salaries of Saudi private sector employees instead of laying them off due to the repercussions of the pandemic.

What is the size of the benefit from the initiative?

More than 480,000 citizens in more than 90,000 establishments, about one billion dollars.

The Saudi General Organization for Social Insurance announced, on Monday, that it will stop supporting Saudi workers in private sector establishments affected by the repercussions of the Coronavirus, which were not included in the decision to extend and reactivate their contributions.

According to official reports, more than 480,000 subscribers in more than 90,000 establishments have benefited from the “Sand” initiative, which included providing support to citizens working in the private sector within three months, and the support amounted to 3.5 billion riyals (about one billion dollars).

Last July, the government extended support for 70 percent of its citizens working in the most affected facilities, and a maximum of 50 percent of Saudi workers in the least affected facilities, as determined by the relevant committee.

The initiative of the General Organization for Social Insurance, through the unemployment insurance system (SANED), contributed to mitigating the effects of the Corona crisis on private sector establishments.

The employer was exempt from the obligation to pay the monthly wage to the beneficiaries, in addition to his exemption from paying insurance contributions for all participants benefiting from this support.

This support led to a decrease in the number of excluded workers in the private sector during the first six months of the year 2020 by more than 10%, compared to the number of those excluded during the same period last year.

At the beginning of last April, the Saudi government began bearing 60 percent of the salaries of Saudi private sector employees instead of laying them off due to the repercussions of the pandemic.

The unemployment rate among Saudis at the end of last year was 12 percent, according to the General Authority for Statistics (governmental).

Saudi Arabia, the largest oil exporter in the world, is currently suffering from a decline in its financial revenues as a result of the drop in oil prices due to Corona’s repercussions on demand, and the consequent fall in prices.

The total number of injuries in Saudi Arabia reached 336,766 cases, while the total number of people recovered reached 322,055 cases, and the number of deaths reached 4,898 cases, according to the latest official figures announced.

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