Insurance plan for jobless

The Shoura Council has approved an insurance scheme for jobless citizens as part of its efforts to reduce unemployment in the country and encourage them to work in the private sector.
“The council endorsed the law, which has 29 articles, after listening to the views expressed by the Administration and Manpower Committee on the issue,” said Fahaad Al-Hamad, assistant president of the council.
“The scheme will be a branch of the social insurance,” he said, adding that it ensures the citizens who lose jobs for reasons beyond their control to receive compensation.
Saudi workers aged below 59 can join the scheme that falls under the General Organization for Social Insurance (GOSI) and provides “a minimum amount of income” for a worker if he or she loses job.
The scheme’s premium is 2 percent of the salary. It is equally shared between the employer and the employee.
“The scheme will have a big impact on Saudi workers in the private sector,” Ibrahim Badawood, managing director of ALJ Community Initiatives, told Arab News.
“It will benefit young Saudis who lack experience and often fear that they would be fired from their jobs,” he said.
Badawood said lazy workers should not be allowed to exploit the system.