JEDDAH: Saudis who have lost jobs in the private sector due to reasons beyond their control are entitled to a compensation of SR2,000 per month, the disbursement of which began on Sunday.
The compensation is being paid under the framework of “Saned,” an unemployment insurance scheme, local media reported, adding that the same is conditional.
The Saned scheme, which was launched following a royal decree almost five years ago, stipulates that the subscriber and employer pay one percent of the salary for the program.
The insurance department said the maximum period for the disbursement of compensation is 12 months. The compensation will be disbursed by 60 percent of the average monthly wages for the first three months, and by 50 percent of the total monthly salary for the remaining nine months.
If the entitlement is less than SR2,000, the amount will be increased to reach the figure.
A source familiar with the insurance department denied that the system has encouraged unemployment, confirming that its only purpose is to establish a safety net for those losing jobs for reasons such as unfair dismissal or bankruptcy of companies.
“Saned is a joint liability and solidarity program which tries to help those who lose jobs to overcome any financial distress,” the source said.
The insurance department said the disbursements of compensation will be stopped if the beneficiary refuses three suitable job offers provided by the Human Resources Development Fund (HADAF) or any other competent body.
The other things for disqualification are as follows: If the person leaves the Kingdom for two consecutive months, operates a business of his/her own, fails to succeed or enroll in a training course and reaches 60 years of age. The employee should be registered with HADAF for the compensation.
Conditional SR2,000 dole disbursement begins
Conditional SR2,000 dole disbursement begins
