MPs debate higher expat work permit fees to boost local jobs

TDT | Manama

Email: mail@newsofbahrain.com

The Bahraini parliament is intensifying its efforts to bolster local employment by proposing a progressive increase in work permit fees for expatriate workers. This initiative aims to achieve a 70% Bahrainisation rate in critical job sectors, making it a defining move in the country’s drive to prioritize its citizens in the workforce.

The Proposal

Led by MP Dr. Muneer Seroor, the plan suggests a phased increase in fees—20% in the first year, 35% in the second, and 50% in the third. The rationale is straightforward: as hiring expatriates becomes more expensive, companies will be incentivized to employ Bahraini nationals, thereby reducing unemployment and boosting local household income.

The parliamentary vote on this proposal is set for Tuesday, and its potential approval could mark a significant shift in Bahrain's labor market.

Support and Criticism

While the Services Committee has endorsed the proposal, the Labour Market Regulatory Authority (LMRA) and the Bahrain Chamber of Commerce and Industry (BCCI) have raised significant concerns.

LMRA’s Perspective

The LMRA argues that the proposed measure may not be feasible or effective in addressing unemployment. It notes that labor market demands are dynamic, and linking fee increases to Bahrainisation quotas in specific roles could create enforcement challenges.

Additionally, the LMRA questions the assumption that higher fees would improve household finances and economic spending. Instead, it advocates for a general fee hike across all sectors, which it believes would be more balanced and sustainable.

BCCI’s Stance

The BCCI warns that such a law could impose financial strain on businesses, particularly small and medium enterprises. The organization has urged parliamentarians to adopt broader, long-term strategies to enhance the job market without stifling economic growth.

Balancing Priorities

Proponents argue that the proposal addresses a pressing issue: unemployment among Bahrainis and the country’s over-reliance on foreign workers. However, critics emphasize the need for careful planning and alignment with existing laws and national employment strategies, such as Article 42 of Law No. 19 of 2006.

What’s Next?

As the debate unfolds, Bahrain finds itself at a crossroads. Will this bold step create a thriving job market for Bahrainis, or will it place undue pressure on businesses and the economy? The answer may lie in striking a balance between immediate action and strategic foresight.

Stay tuned for updates as parliamentarians cast their vote on this crucial matter.