MPs Propose Equalisation of Social Insurance Benefits for Public and Private Sectors

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Good news for Bahrain's private sector retirees! Five MPs have proposed a significant amendment that could level the playing field for accessing social security benefits. This move aims to improve the lives of many citizens and enhance the income of the Social Insurance Organisation (SIO).

MPs Basma Mubarak, Ahmed Al Saloum, Maryam Al Dhaen, Abdulla Khalifa Al Rumaihi, and Ali Al Doseri have submitted a proposal to amend Article 144 of the Social Insurance Law, originally issued by Decree Law No. 24 of 1976.

The proposed amendment seeks to replace the existing text of Article 144 with new provisions. These allow the SIO to convert a pensioner's entitlement into a lump sum payment, calculated according to Table No. 6 Facilities. The conversion must adhere to specific terms, conditions, and limitations, as decided by the Minister based on recommendations from the Board of Directors. This conversion can occur no more than once every two years from the date of the last conversion. Additionally, the pensioner may request to halt the conversion process at any time, subject to conditions determined by the Minister, including the handling of returned amounts to the organisation.

The primary objective of the proposed law is to align the private sector's social insurance benefits with those of the public sector. Currently, public sector retirees can renew replacement loans every two years, while private sector retirees must wait two years after repaying the last instalment, creating a significant disparity. This amendment aims to provide equal opportunities for both sectors, allowing retirees from the private sector to renew loans under the same conditions as those from the public sector.

MP Basma Mubarak stated that the proposal seeks to enhance social security for citizens, improve the standard of living for Bahraini residents, and increase the income of the Social Insurance Organisation (SIO) through interest accrued on replacement loans.