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Insurers moot 'dole' fund to protect 1m jobless Saudis
July 28, 2016, 1:22 pm
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Unemployed Saudis would continue receiving up to 60 percent of their salaries for a year after losing their job under a new ‘dole’ scheme being mooted in the kingdom.

Under the scheme – similar to a corporate pension programme - employees would pay 1 percent of their monthly salary into a ‘dole fund’ and the employer would make a matching contribution of 1 percent, insurance industry sources told Arab News.

The sources claimed that, under the system, workers would build up a pot equating to 60 percent of their salary – not exceeding SR9,000 ($2,399) per month – which they could access should they be made redundant or otherwise lose their job.

Employees would be eligible for joining the scheme once they have worked for a company for at least 12 months, the newspaper reported.
It said the sources estimated that more than 1 million employees in the kingdom would benefit from the scheme.

It was unclear whether the scheme would apply to both public and private sector employees – although the sources reportedly said that the system would serve “a large segment of workers in the state”, guaranteeing a decent standard of living for them should they lose their jobs.

The system would offer monthly salaries for one year from the date of release from employment, according to the newspaper.

Source: Arabian Business

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