MPs discuss ending salary deductions for unemployment insurance and raising jobless benefits

TDT | Manama

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Plans to halt salary deductions for unemployment insurance while enhancing benefits were the focal points of a recent session of Parliament's Services Committee. Key officials, including Labour Minister and Labour Market Regulatory Authority (LMRA) chief, joined the discussions alongside MPs, debating a series of proposed legal amendments.

Ending Salary Deductions and Increasing Benefits

One of the standout proposals involves abolishing the 1% salary deduction from employees in both public and private sectors. Instead, the unemployment insurance fund would draw its finances from accumulated VAT revenues.

Additionally, the committee proposed increasing unemployment benefits to BD300 monthly for university graduates and BD200 for other claimants. The move aims to alleviate financial burdens on jobseekers, with benefits extending until individuals secure employment. MPs also debated removing restrictions on the duration and frequency of claims.

Voluntary Retirement Fund and Domestic Worker Rights

A related proposal seeks to replenish the unemployment insurance fund with resources allocated to the voluntary retirement programme, ensuring the funds return within five years.

On labour rights, the committee discussed amendments to deny end-of-service payments to domestic workers and others who leave their jobs without adhering to work permit regulations.

Regulating Expatriate Employment

Expatriate workers were a major focus during the session. A draft law proposes mandatory employment with a single employer for at least two years before switching jobs, with a minimum one-month notice period. Another motion removes the employer's obligation to repatriate deceased expatriate workers’ remains.

Bahrainisation in the Private Sector

Proposals also highlighted plans to Bahrainise specific private-sector roles within two years, requiring businesses to replace foreign workers with Bahrainis. Companies would need to modify operations to align with these new directives.

Labour Market and Social Media Reforms

Stricter controls over the annual issuance of work permits were suggested to streamline labour market management. Another motion advocates extending the probation period for domestic workers from three to six months to allow employers more evaluation time.

Social media advertising also came under scrutiny, with calls for stricter rules to protect all stakeholders and promote fair practices.

A Shift Towards Economic and Social Equity

The sweeping reforms reflect Parliament's efforts to address unemployment, strengthen job security, and align labour market policies with Bahrain’s economic objectives. If approved, these proposals could mark a significant shift in the kingdom’s employment landscape, aiming to balance the interests of employers, employees, and jobseekers.

The committee’s recommendations now await further deliberation in upcoming parliamentary sessions.