Saudi Arabia moved to help firms avoid having to fire Saudi citizens amid an economic slowdown resulting from the coronavirus pandemic, according to reports.
In a royal order published by the SPA, King Salman ordered that Saudi businesses can request monthly compensation amounting to 60% of the employee’s salary for the next three months. Reuters reports the government will pay up to $2.4 billion.
The measure is set to take effect this month and around 1.2 million Saudis might qualify, Bloomberg reports.
The move comes as layoffs around the world, including in the United States, are soaring as businesses close and economies grind to a halt to stop the spread of the coronavirus. First-time claims for unemployment benefits in the United States have surged more than 3,000% since early March.
The stimulus announced last month by Saudi Finance Minister Mohammed al-Jadaan included 70 billion riyals ($18.6 billion) to be set aside to help businesses, with measures including exemptions and postponements of some government fees and taxes.
