Today: Tuesday, 27 July 2021 year

Saudi Arabia to merge pension and unemployment insurance funds

Saudi Arabia to merge pension and unemployment insurance funds

Saudi Arabia made some changes in the governmental structures to ease the post-COVID period, one of the signatures of which is unemployment.

The Public Pension Agency and the General Organization for Social Insurance will create one entity providing a protective umbrella to workers in both the public and private sectors. Taking into account the unemployment crisis in Saudi Arabia, the government preferred the merger process.

On Tuesday, King Salman has approved a respective Cabinet’s decision to merge, MEMO reports. A move would not affect the mechanism and dates of disbursement of insurance benefits to insurance or pensions clients, nor the progress of operations or transactions.

According to Finance Minister Mohammed al-Jadaan, the merger will ensure covering public and private sector employees under one insurance scheme. Moreover, there are many pluses in the decision such as:

  • achieving high standards in providing social benefits;
  • eliminating duplication in jurisdictions;
  • utilising resources;
  • increasing operational and financial efficiency; and
  • improving services provided for the contributors.

In its efforts to improve the post-COVID difficulties in the economy, the Saudi government preparing several changes to boost the touristic sector.