Question

Explain briefly how the Saudi Government support for the private sector employee,during the COVID-19 pandemic, has resulted in a redued layoff.

Answer 1

A sum of nearly $61 billion in service packages serving the private sector. The packages include exemptions and the postponement of some government dues ($18.6 billion), a $13.3 billion package to help the banking and SME sectors, an allowance of $13.3 billion to ensure prompt payment of government dues to the private sector, and a salary subsidy of 60% (up to SAR 9,000 per employee per month) of private sector wages for Saudi workers. There are also several tax-related initiatives, including the extension of tax return filing deadlines and the collection of certain returns. SAMA also reported that $13.3 billion will be pumped into the banking system to boost financial liquidity and enable banks to continue supplying private sector credit facilities.

The Saudi government has declared that it would pay 60% of the salary of Saudi private sector workers for a period of three months with a limit of USD 2.39 billion. The payout shall be paid in compliance with the terms laid out in the unemployment insurance policy (SANID) Allowing the employer and employee to consent within six months either to decrease the pay of the employee to conform to the real working hours (up to 40 percent) or to allow the employee a local leave to be deducted from his / her deserved annual holiday or to allow him / her an exception. Furthermore, the firing is not legal until it has been apparent that the contractor has gained from some government subsidy to resolve this condition.

By submitting an application to the Ministry of Human Resources and Social Development (one application is permitted every 14 days and can contain several names), employers can promote the return of their expatriate workers to their homelands by submitting an application to the Ministry of Human Resources and Social Development. The Human Resource Development Fund has allocated SAR 5.3 billion to help private sector businesses to recruit and train nationals. Suspension of fines connected with expat recruitment. Lifting the suspension after the pandemic linked to salary security.