New GOSI regulations to cover unemployment compensation

New GOSI regulations to cover unemployment compensation
Updated 10 January 2014

New GOSI regulations to cover unemployment compensation

New GOSI regulations to cover unemployment compensation

The General Organization for Social Insurance (GOSI), will issue regulations pertaining to the unemployment compensation system in the next six months. The organization is working in close collaboration with the Ministry of Labor to carry out the task.
GOSI spokesman Abdullah Abdul Jabbar said that the regulations would clarify which individuals are eligible to be covered by the system.
In an exclusive interview with Arab News, Aljabbar announced that a 2 percent rate would be calculated against the total value of the basic salary (monthly salary) and the housing allowance, as the percentage of an additional insurance deduction from the employees’ salaries, to reach 22 percent.
He indicated that the compensation system for unemployed nationals would not include employees who resigned from their jobs voluntarily, and will not include those who have not completed 12 months of employment with their current employers.
The official explained that the 2 percent would be deducted from the employees’ gross salary, which is the basic salary plus the housing allowance.
Providing further details, he said, employees would be required to pay 10 percent, which includes the 9 percent currently paid to the insurance plus the 1 percent for the unemployment compensation. Meanwhile, establishments would have to pay 10 percent, as is currently the case, in addition to a 2 percent hazard allowance, bringing the total percentage paid for the unemployment compensation and the insurance pension to 22 percent.
Abdul Jabbar said employees registered in the system could benefit from the compensation four times based on the duration of their service. The length of service is divided into four periods, depending on whether the beneficiary worked less than 12, 18, 24 or 36 months.
The system is designed in a way that takes into consideration the beneficiaries’ employment situation and other external factors, he added.
He also revealed that there are procedural issues to be included in the regulations that will focus on keeping track of employees that are entitled to compensation upon leaving their jobs.
The regulations are currently being finalized and will be released before the application of the system, he confirmed.
The spokesman stressed that the system will not cover employees who resign from their jobs voluntarily, but only those who lost their job for reasons beyond their personal control.
There will be no exceptions for employees who have not completed the minimum subscription period of 12 months, which is a requirement, he concluded.