Saudi government to cover 60 per cent of salaries amid coronavirus

The latest 9 billion riyal package seeks to limit the number of workers laid off due to the outbreak

A Saudi money exchanger wears a protective face mask and gloves as he counts Saudi riyal currency at a currency exchange shop in Riyadh, Saudi Arabia March 10, 2020. Reuters

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. Reuters

Members of the Saudi armed forces attend prayers at a mosque in Saudi Arabia's holy city of Makkah on April 3, 2020. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. Reuters

A policeman wearing a protective face mask blocks the road during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. Reuters

A combination of photos shows a small crowd of worshippers around the sacred Kaaba in Mecca's Grand Mosque on March 7, 2020, and a large crowd during the pilgrimage, on August 13, 2019. AFP

Muslim worshippers circumambulate the sacred Kaaba in Makkah's Grand Mosque, Islam's holiest site, on April 3, 2020. AFP

A man checks his phone as he crosses an empty street in Saudi Arabia's holy city of Makkah on April 3, 2020. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. AFP

Birds are seen near the Grand Mosque during a curfew. Reuters

Police officers man a checkpoint in a street in Saudi Arabia's holy city of Makkah on April 3, 2020. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. AFP

The clock tower is lit up with the phrase "Home Heroes" during a curfew. Reuters

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. Reuters

The deserted old town of Saudi Arabia's Red Sea coastal city of Jeddah. AFP

A view of a deserted street during a curfew imposed to prevent the spread of the coronavirus disease in the holy city of Makkah. Reuters

The announcement comes amid uncertainty over the hajj which is due to take place at the end of July, after authorities this week urged Muslims to temporarily defer preparations for the annual pilgrimage. AFP

The measures bar people from entering and exiting the capital as well as Jeddah, Mecca and Medina and prohibiting movement between all provinces to stem the spread of coronavirus with the number of deaths from the disease rising to 21. AFP

Pigeons fly around closed shops in the old town of Saudi Arabia's Red Sea coastal city of Jeddah on April 2, 2020. AFP

A vegetable seller wearing a protective face mask sells fruits and vegetables at a market before markets close, to prevent the spread of coronavirus disease, in Riyadh. Reuters

Branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia. Reuters

The Saudi government will cover 60 per cent of the salaries of private-sector workers in industries hit by the coronavirus pandemic, King Salman announced on Friday.

The move is the latest major economic package in the kingdom to help cushion the financial impact of the virus as the number of cases hit 1,885 with 21 deaths.

The state-run Saudi Press Agency announced that companies forced to consider lay-offs due to the virus could now apply to the government to cover 60 per cent of the salaries of workers for the next three months up to 9,000 Saudi riyal per month (Dh 8,787).

The total economic package is valued at over 9 billion riyal.

Coronavirus in the Middle East

Finance Minister Mohammed Al Jadaan thanked King Salman and called on private sector companies to protect workers but also find ways to avoid firing people during the outbreak.

He said the new assistance package will be managed through Sanad, the national unemployment assistance system.

Mr Al Jadaan said that 1.2 million Saudis would be covered by the new measure and a committee under the financial authorities would assess the support and monitor the measure in case it needed to be extended beyond the three-month window.

The cover will begin in April with the first payments sent to companies on May 3, the minister said.

The government has already announced a package of measures to help companies hit by restrictions brought in to combat the spread of Covid-19.

The 70 billion riyal package exempted them from some taxes and fees and the SPA also highlighted a further 50 billion riyal support package to banks and financial institutions to aid small and medium enterprises.

The move comes after the government extended curfews in several areas on Thursday.

The holy cities of Makkah and Madinah are now under 24-hour curfew – up from 15 hours a day before. In Dammam and the governorates of Taif and Al Qatif, the curfew has been brought forward by four hours to combat the spread of coronavirus.

From Friday, the curfews will begin at 3pm instead of 7pm and end at 6am.

The port of Dammam, on the Gulf, is a main entry point for supplies for the oil industry centred in the eastern region and for the rest of the kingdom.

Riyadh and Jeddah have already been sealed off by authorities, barring people from entering and exiting the cities as well as prohibiting movement between all provinces.

Cars in the cities may only carry one passenger to limit transmission of the virus.