Government Opposes Bill Extending Unemployment Insurance to Parliamentarians

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The Bahraini government has expressed reservations about a parliamentary bill aiming to include members of the Council of Representatives and the Shura Council in the unemployment insurance scheme. This would grant unemployment benefits to parliamentarians whose terms are not renewed.

The government voiced concerns that the bill's expansion would lead to increased expenditures for the unemployment insurance fund, adding a new category of beneficiaries. This, they argue, could negatively impact the fund's financial stability and its projected lifespan.

The government urged parliamentarians to conduct an actuarial study to assess the cost of this amendment and its impact on the fund's financial standing, lifespan, and ability to fulfill its objectives.

The government highlighted that the technical foundations of the social insurance system, which encompasses unemployment insurance, rely on actuarial studies. These studies determine the likelihood of risk occurrence and subsequently define the funding sources and benefits provided by the system when that risk materialises. Consequently, any modifications to these rights necessitate an actuarial study to ensure the system's sustainability in paying insurance benefits when unemployment or involuntary joblessness occurs, given the available funding sources. The parliamentary bill, the government stated, lacked such a study.

The government further argued that the bill contradicts the core principles and provisions of the unemployment insurance system. Legislation, they assert, functions as a unified, cohesive whole, with each provision holding a specific meaning independent of others while simultaneously forming an interconnected structure as intended by the legislator.

The government emphasised that members of the Shura Council, the Council of Representatives, municipal councils, and the Capital Municipality Council are not subject to social insurance provisions under any existing pension systems or the Social Insurance Law. Therefore, they are not eligible for unemployment insurance coverage under the law's provisions.