News & Legal Updates

A Royal Order covers 60% of Saudi wages as COVID-19 impacts private sectors

The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud  issued a royal decree exempts Saudis working in the affected private sector facilities from Articles 8 which relates to the acquittal or conciliation settlements arising during the work duration for the employee   article 10 which regulates the calculation of duration’s according to the Hijri calendar,and article 14 which was deleted and merged with article 13 of the same regulation  which relates to the internal regulations of the companies of the private sector.  of the unemployment insurance (Sand) scheme. Employees going to be given a monthly compensation of 60% of the registered wage in social insurance for three months with a maximum of 9,000 SR monthly. The compensation is valued at 9 billion SAR, and the numbers of beneficiary of said compensation is estimated to be 1.2 million Saudi employees, where the compensation shall covers 100% of the number of Saudi workers in small establishments consisting of 5 workers or less, and it could reaches 70% in establishments where the number of employees exceeds 5 employees. The employers cannot force the employees to work during the compensation period.