The General Organization for Social Insurance (GOSI) disbursed nearly $320mn for over 40,000 citizens. This is to support Saudi workers in the private sector enterprises impacted by the implications of the novel coronavirus spread.
GOSI governor Sulaiman al-Quweiz announced that the financial assistance was according to regulations stipulated in the unemployment insurance (SANED).
The support covered over 80,000 firms and more than 400,000 Saudis have benefited from it. This represents over 23% of the total Saudis in the private sector registered with the GOSI, according to Quweiz.
The governor explained that the method for submitting the application for the support request is easy and clear. He also noted that they removed any possible complications over eligibility.
He indicated that assistance was for those who submitted their applications during the specified period announced earlier. As for those who submitted their applications after the end of the specified period and during April; they will be paid the compensation for May on June 1, 2020.
Strength of the Saudi economy
Quweiz stressed that the statistics showed the strength of the Saudi economy, specifically during this crisis. This proved that the majority of the private sector companies and firms did not seek the government as they are financially well placed to tide over the crisis.
The governor thanked the government for harnessing its legislative and executive powers and its financial capabilities to intervene quickly to support the private sector.
He explained that the royal decree is a preemptive intervention to take advantage of the SANED fund created for such conditions.
In April, King Salman bin Abdulaziz approved exceptions for unemployment insurance (SANED). This is to mitigate the effects of COVID-19, on the private sector. Besides, Saudi workers, who may lose their jobs because of this crisis.
King Salman issued a Royal Order to exempt the Saudi workers, in the private sector firms, that have been impacted by the current consequences of COVID-19 outbreak, from articles 8, 10 and 14 of SANED.