Only 50% of Saudi workers to get SANED compensation

RIYADH — 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 that are still 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 be canceled for all Saudi employees of the firm, and the employer shall have to pay the entire wages of the Saudi employees, including their social insurance contributions,” the organization said in a statement.

The government had 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 was extended later. Employers were entitled to apply for the financial compensation for those Saudi workers whose names are registered with GOSI.

The organization clarified that the establishments that are still eligible to get SANED compensation include those working in the fields of accommodation, travel agencies, tour operators, reservation services and related activities, air transport, sports activities, leisure and entertainment activities, creative activities, and the arts sector.

Regarding workers in establishments operating in other sectors where the SANED support has stopped, GOSI stated that they will be excluded from the support and have to re-register with the same employer at a later time in October, provided that their registration is retroactive from Oct. 1.

The employer is required to pay wages and insurance contributions of the Saudi employees in accordance with the Labor Law and the social insurance system.

The organization 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.




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