Saudi Arabia Earmarks Almost $2.4Bln To Offset Wages For Private Sector Staff�-State Media

DOHA (UrduPoint News / Sputnik - 03rd April, 2020) Saudi Arabia will allocate 9 billion Riyals (almost $2.4 billion)�to compensate salaries for the employees working for private entities that are unable to fulfill their obligations due to the COVID-19 outbreak, the Saudi state media reported on Friday, citing a Royal decree.

In a move aimed to prevent unemployment, the Saudi citizens involved in the private sector may receive 60 percent of their registered wage for a period of three months. The compensation for each employee cannot exceed 9,000 riyals monthly, the Saudi Press Agency (SPA) reported.

The employers, instead of laying off workers, will have to apply for compensation from the government beginning in April, while the payments to employees shall start in May.

The entities, however, will have to continue paying wages both to Saudi and foreign employees not covered by the Saudi unemployment insurance scheme (SANED), according to the agency.

Finance Minister Mohammed Al-Jadaan has urged employers to resume payments to their workers once the compensation period ends.

As of Friday, Saudi Arabia has registered 2,039 COVID-19 cases, according to the country's Health Ministry.