Parliament Approves Cost-of-Living Allowance for Pvt. Sector Workers

Mohammed Darwish

TDT| Manama

Parliament has unanimously approved a proposal to introduce a monthly cost-of-living allowance for private sector workers and small business owners earning less than 1,500 dinars.

The measure, aimed at easing financial burdens and promoting parity with government employees, has been championed by MP Hanan Fardan and endorsed by the Financial and Economic Affairs Committee.

Fardan had argued that private sector employees and small business owners registered with the Social Insurance Organisation face mounting living costs and deserve the same support extended to government workers. “This proposal is about fairness,” she said, “and ensuring all hardworking Bahrainis can meet their financial challenges.”

Committee Chair Ahmed Al Salloom had echoed this sentiment, calling the initiative a practical step to support citizens. “Extending the same financial support to the private sector addresses equity and recognizes the contributions of entrepreneurs and private employees,” he said.

The committee finalized its report on November 11th, recommending that the allowance apply to those earning below the 1,500-dinar threshold. The allowance mirrors adjustments granted to government employees during discussions on the State Budget for 2023 and 2024.

Initially referred to the committee in June last year by Speaker Ahmed bin Salman Al Musallam, the proposal gained unanimous backing after extensive deliberations. MP Basma Mubarak served as the lead rapporteur.

The allowance could provide financial relief to thousands of private sector workers and small business owners across Bahrain, addressing long-standing disparities between the public and private sectors.