Saudi govt. to pay 60% salaries of private sector Saudis

Coronavirus has affected our social as well as economical lives. Some businesses have been shutting down due to low demand and others are struggling to pay-off salaries to their employees.  In this desperate time, King Salman of Saudi Arabia has stepped forward to help its people.

King Salman has ordered the Saudi government to pay off at least 60% of Saudi employees’ salaries for a period of three months to the private sector employees. In this regard, the Saudi government will pay SR 9 billion to 1.2 million Saudi employees working in the private sector.

Will Saudi employees get double salaries?

The decision will also exempt employers from paying monthly wages to the employees during the compensation period. However, Companies are not allowed to require workers to work during the compensation period.

The Saudi government will pay 60% of the salaries to Saudi employees for the month of May, June, and July if a company meets the following 6 conditions.

6 conditions to get the salary

If a company meets all of the following 6 conditions, its Saudi employees can get the above-mentioned compensation from the government.

  1. Its Saudi employees must be registered with the GOSI before Jan 01, 2020.
  2. The compensation will be paid to the higher of the following;
    • 70% of Saudi Employees in a company.
    • 5 Saudi Employees.
  3. The compensation will be paid to all sectors which are affected by the COVID19 crisis with the following exceptions;
    • Telecom Sector
    • Food, catering, and supermarkets.
    • Financial Institutions (Banks, Insurance, etc.)
  4. If the company commits to pay these workers' salaries after the expiry of 3 months period.
  5. If the company commits to pay salaries to the remaining workers (Saudis+Non-Saudis) not covered by this program.
  6. If the company has not delayed paying salaries to the first quarter of 2020.

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.