RIYADH — The General Organization for Social Insurance (GOSI) announced on Sunday that the contribution of the employer and the beneficiary in the SANED unemployment insurance scheme has been slashed from two percent to 1.5 percent of the wage.
The necessary amendments have been made in the GOSI regulations in this regard. As per the amendment, the subscription rate of 1.5 percent shall be borne equally by the employer and the contributor effective from Jan. 1, 2022.
According to GOSI sources, the decision to reduce the subscription rates does not affect the amount of compensation being paid to the beneficiaries of SANED at present and in future.
It stated that under the revised subscription system, employer and the beneficiary should make contribution of 0.75 percent each, instead of the earlier contribution of one percent. There is no change in the mechanism of collecting the contribution and it will continue as it was in the past.
GOSI explained that the decision to reduce the subscription rate comes as a result of the continuous periodic evaluation of the obligations of Human Resources Development Fund (HADAF) and the benefits granted by the SANED system.
The periodic evaluation of the system and reviewing the subscription rates would continue according to the approved mechanism, the organization said adding that this reflects the flexibility of procedures in developing and improving systems and legislations to support the beneficiaries of SANED system.
GOSI urged its customers, in the event of any inquiries, to review the SANED system’s FAQ page on its electronic portal, or communicate with various digital customer care channels.
It is noteworthy that SANED is one of the HADAF programs that is designed to support Saudi employees and their families during the period of their unemployment due to circumstances beyond their control.
The program works to bridge the gap by providing a monthly source of income during the transitional period between the previous job and obtaining a new job.
The SANED compensation is paid at the rate of 60 percent of the average monthly wages subject to contribution for each month of the first three months and at 50 percent of this average for each month for months beyond that, and the maximum period of disbursement of compensation is 12 continuous or intermittent months for each time.
The beneficiary of SANED is entitled to compensation as of the first of the month following the date on which the eligibility conditions are met and the application is submitted.
SANED was one of the most important programs that contributed to supporting subscribers and private sector establishments during the period of the coronavirus pandemic.
It had a significant impact on mitigating the economic impacts of the pandemic on private sector enterprises, which helped prevent Saudi employees from losing their jobs. During the pandemic period, the government had announced SANED compensation for a period of three months and this period was extended later.
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