Private firms to cut Saudi staff enjoying compensation

Private firms to cut Saudi staff enjoying compensation

The General Organization for Social Insurance (GOSI) directed private establishments; least affected by the coronavirus pandemic, to reduce the percentage of Saudi beneficiaries of financial compensation from government to 50 percent before Aug. 15, the Saudi Press Agency reported.

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 would bear 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 are to apply for the GOSI financial compensation for those Saudi workers whose names are with the organization.

As per the new directive, GOSI clarified that the compensation for the month of September for Saudi workers in private sector establishments will be a maximum of 70 percent of Saudi workers in establishments operating in the most affected business activities. These also include residential sector; travel agencies; tour operators; reservation services and related activities; air transport; sports activities; leisure and entertainment activities; creative activities; arts; as well as other personal service activities.

As for the establishments operating in other activities; the government support will cover 50 percent of Saudi workers as a maximum. GOSI stressed that the least affected establishments are to reduce the percentage of Saudis who come under the financial compensation to 50 of the total Saudi workers before the end of Aug. 15.

Limit maximum percentage

This will also be through the establishment’s online account in GOSI by removing the names of subscribers to the limit of the maximum percentage allowed. “In the event of not removing the required percentage of beneficiaries from the list as per the government directive within the stipulated period of time, the government also support to the firm will be canceled,” GOSI said.

Besides, all beneficiaries currently registered in SANED system got compensation for August with the same previous mechanism of financial compensation.