Saudi Government has been making every effort to ensure that the unpaid dues of employees who have been or had been working in private sector are settled as early as possible. Kingdom has been providing jobs to a vast majority of expatriates from a long time. Due to the current financial crisis, many companies had to start downsizing and terminate their employees. Companies did not have enough funds to pay dues to departed employees so they were given the option either to transfer their sponsorship or go on final exit. They were promised to get paid as soon as companies arrange some funds for payment. One of the biggest issues which companies in the private sector were facing was the delay of payments from government owned companies.
However, today it has been announced that a package to clear all dues to the private sector has been announced by the Government. The package was proposed by the deputy Crown Prince Muhammad Bin Salman to the custodian of the two holy mosques, King Salman and duly approved by him. The package includes reviewing a number of projects to rearrange their priorities. In addition to this, the package also included halting the signing of different projects worth SR 1 trillion. In this way, the government will be able to arrange funds to pay off private sector companies by the year end. All of us know that the payment to private companies got delayed due to a sharp decline in oil prices in the international market.
Saudi Government has been stressing private sector to make it their first priority to pay off unpaid dues of departing as well as current employees out of whatever funds they receive from the government. Now with the upcoming payments as well, the government will ensure that the unpaid workers are paid in first priority. In the month of October 2016, Bin Ladin has already paid due to salaries to its 70,000 workers as the government released some payments to them.
This is not the first time, the government tried to intervene the issue of unpaid salaries to private sector employees. A couple of months ago, King Salman allocated SR 100 million to pay off unpaid salaries to the workers of private sector employees. I believe due to consistent follow-up by the government authorities, private companies have made it their first priority to pay off workers’ salaries. Recommended: King Salman allocates SR 100 million to settle unpaid salary issues of workers
Saudi Government has also been working very hard to take the Kingdom out of this financial crisis. They are cutting down subsidies paid on different utilities, raising funds from the international market, making efforts to make an agreement to improve the price of Oil in the international market and cutting down government spending as well. We have covered this topic in detail in this link. Recommended: 5 Measures taken by King Salman to counter current Financial Crisis
Source: Arab News