GOSI extends support for affected Saudi private sector employees for 3 months

The General Organization for Social Insurance (GOSI) announced that an approval was issued to extend support for Saudi workers in private sector establishments that are still affected by COVID-19, through the unemployment insurance system (SANED), for an additional period of three months.

The additional period starts from November 2020 until January 2021 with a maximum support ratio of 50% Saudi workers in establishments that are still affected by the pandemic.

The authority also clarified that the total period of support that the Saudi workers in private sector establishments affected by the virus have received so far is nine months.

The organization announced the support mechanism, eligible activities and the conditions for entitlement to disbursement of compensation for the additional period, based on what was decided by the committee for setting controls and eligibility conditions, which includes the ministries of Finance, Economy and Planning, Human Resources and Social Development, and GOSI.

The activities eligible to receive the support are accommodation activities, travel agencies, tour operators, reservation services and related activities, air transportation, sporting activities, leisure and entertainment activities, creative activities and arts.

GOSI indicated that the eligible establishments are required to reduce the percentage of supported Saudis to 50% of the total Saudi workers in the facility as of Oct. 1 and before Oct. 15, 2020, through its account in the online social insurance system.

In case of zero commitment to the previous condition, the compensation request will be canceled for all workers in the establishment, and the employer shall bear the full payment of the employees' wages, including their subscriptions to social insurance and the employer might exclude any of the supported workers and request them to return to work.

Saudi employees in other activities will be excluded from the support and will be registered with the same employer.

Meanwhile, GOSI emphasized that the committee will review and update the list of affected sectors periodically and announce it in a timely manner. The committee will also continue to review developments in the practice of economic activities and government decisions regarding precautionary measures to combat the spread of COVID-19 and take necessary decisions.

In April, King Salman issued an order to the government to bear 60% of the salaries of Saudi private sector employees registered in social insurance, with a maximum of SAR 9,000 per month, through SANED system, Argaam reported.