In times of financial hardships, private sectors around the word are struggling to make ends meet. Saudi Arabia has made tremendous efforts to offset the impacts of coronavirus on its economy. In his latest financial push, King Salman announced that the government will pay 60% of private sector wages for the next 3 months.
In case you missed it: The Saudi government will be providing major relief to private sector companies by paying 60 percent of wages for citizens working in the private sector for 3 months, as per King Salman's orders. pic.twitter.com/NIS8Nheok7— About Her (@AboutHerOFCL) April 7, 2020
This new economic stimuli accounts for $2.4 billion dollars, according to the Saudi Press Agency.
How does it work? In action, companies needing to lay off employees can instead apply for the government to compensate 60% of those salaries for the next three months.
These stipends are set to cover the salaries of 1.2 million citizens, which have a monthly limit of $2400. Three months in, the royal decree demands that companies resume their respective payrolls.
Last month, Saudi Arabia's central bank insured a $32 billion economic stimuli package with $13.3 billion to support SMEs in the Kingdom.
Along with extending residency permits in the Kingdom, King Salman ordered last week that all coronavirus patients in the country benefit of free treatments with no exception.
The Kindgom continues to implement drastic measures to give back to citizens and organizations in need, contain COVID-19, and support healthcare with all necessities. #stayhome.