Unemployment insurance not for legislators, Government clarifies

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Unemployment insurance is not for members of the legislative authority, municipal councils, and the Capital Municipality Council, clarifies the government of Bahrain.

This assertion follows questioning of a proposal suggesting a 1% deduction from their salaries for such insurance.

According to official explanations, these members do not fall under work-related injury insurance or the Social Insurance Law, which are prerequisites for eligibility under Bahraini retirement systems.

Therefore, they are deemed ineligible for unemployment insurance benefits. The disagreement arose in response to a draft parliamentary law aimed at implementing the proposed deduction.

The government argues that this draft law contradicts the fundamental principles and provisions of Decree Law No. 78 of 2006, which governs the unemployment insurance system.

This law defines beneficiaries as “insured or first-time job seekers” who are entitled to unemployment compensation under specific conditions.

It also defines “insured” individuals as “workers covered by the provisions of this law, even if they were a vocational student, or under training.”

Article 2 of the law further specifies the categories eligible for unemployment insurance, including: Civil employees working for the government and public legal persons covered by work-related injury insurance, as well as private sector workers covered by the Social Insurance Law.

Moreover, the government raises concerns about the draft law’s alignment with the technical foundations of the unemployment insurance system.

Actuarial studies form the basis for assessing unemployment risks and determining funding sources and benefits.

The proposed deduction, it argues, could disrupt these calculations and potentially jeopardize the financial stability of the system.

Emphasizing the importance of preserving the integrity and coherence of the unemployment insurance system, the government underscores the need for each legislative text to uphold its specific role.

Introducing the proposed deduction, it contends, would introduce unnecessary complications and deviate from the established framework, potentially compromising the system’s effectiveness and sustainability.