Insurance to Help 1 Million Jobless Saudis

DAMMAM: Insurance industry sources say that a new unemployment dole system will guarantee a monthly income for one year for workers removed from their jobs so long as they have worked for more than 12 months on the job.

The sources pointed out that the system will be mandatory for all participants, as the worker will pay 1 percent of his salary toward the fund and the employer will make a matching contribution of 1 percent. The sources expected the number of beneficiaries of this decision to exceed 1 million workers in the Kingdom.

The sources pointed out that the system will serve a large segment of workers in the state, as it will provide a decent life for them in case they lose their jobs, especially since the system will offer monthly salaries for one year from the date of release from employment.

The monthly deduction rate is not high, and it gives the employees many advantages, including benefiting from the General Organization for Social Insurance.

Businessmen, however, criticized the pressure exerted on the private sector to achieve Saudization, without exercising similar pressures on young people to commit, stressing that the private sector has a sense of responsibility with Saudi workers, as they are considered part of the facility, and therefore they will able to move with the decision to serve the public interest.

They noted that the private sector is dealing positively with all the decisions made by the state, including increasing the minimum wage.

Shoura Council member Abdul Rahman Al-Rashed believes that the unemployment system will help workers search for job opportunities in peace. He said that under the system, workers will get 60 percent of their salary, not exceeding SR9,000.

(Source: ArabNews.com)