The General Organization for Social Insurance (GOSI) has issued instructions to reduce the percentage of Saudis, who are beneficiaries of SANED financial compensation, to 50 percent of the total Saudi workers.
This will be applicable to private establishments; affected by the repercussions of the coronavirus crisis. The establishments shall have to make the necessary updating in this regard through their GOSI online account before Oct. 15.
“In the event of non-compliance of this directive; the SANED compensation request will also be canceled for all Saudi employees of the firm. The employer shall have to pay the entire wages of the Saudi employees; including their social insurance contributions,” the organization also said in a statement.
Mitigating economic impact
The government earlier announced financial compensation under the unemployment insurance scheme (SANED) in the wake of the measures taken to mitigate the economic impact of the coronavirus pandemic situation.
Under the scheme, GOSI bears 60 percent of the wages of Saudi employees working in the private sector for a period of three months and this period extended later. Employers to apply for the financial compensation for those Saudi workers whose names are with GOSI.
The organization also clarified that the eligible establishments to get SANED compensation; include those working in the fields of accommodation; travel agencies; tour operators; reservation services; and related activities; air transport; sports activity; leisure and entertainment activities; creative activities; as well as the arts sector.
Regarding workers in establishments operating in other sectors where the SANED support stopped; GOSI stated that they will not get support. They will have to re-register with the same employer at a later time in October; on the condition that their registration is retroactive from Oct. 1.
The employer is also to pay wages and insurance contributions of the Saudi employees. This is in accordance with the Labor Law and the social insurance system.
The organization also confirmed that it will coordinate with the Ministry of Human Resources and Social Development to follow up on the establishments ’commitment to making the regular payment of wages of workers after the SANED compensation period ends, and the necessary penalties will be slapped on the violators.