5,500 early job exits

TDT | Manama

Email: mail@newsofbahrain.com

More than 5,500 people opted for voluntary retirement from both the public and private sectors in 2023, with the Social Insurance Organisation (SIO) reporting that the cost of service year buyouts totalled BD7.6 million.

Despite the high number of early retirees, the head of the pensions’ authority maintained that the new rules on expatriate end-of-service payments had no impact on Bahrainis’ retirement options. In the public sector, 2,021 people retired in 2023, with 93 per cent doing so before the age of 60. The private sector saw 3,570 people step down, 89 per cent of them before reaching the official retirement age.

This information came in a written response from SIO chief executive Sahar Al Mannai to MP Jalal Kadhem, who sought details on early retirement schemes in the private sector. Al Mannai revealed that 1,169 government employees applied to buy notional service years under the 1975 pension law. Of these, 593 met the criteria established by a 2023 Cabinet decision and were approved. As a result, 594 public sector employees took early retirement.

For the private sector, governed by a 1976 law, 179 workers had their applications for service year buyouts approved, with 154 successfully retiring early.

BD7.6 million in buyouts The total cost of buying service years reached BD7.6 million last year. Al Mannai explained that part of this sum is being repaid through monthly deductions from pensions.

“The law, before it was changed, allowed workers to keep paying after they left work if they hadn’t yet covered the full amount,” she said.

Kadhem also inquired if the SIO had borne any of the cost. Al Mannai responded firmly:

“The organisation pays pensions as and when they are due, as laid out in law. Coverage also extends to the self-employed, freelancers, and business owners.” No impact from expat endof-service scheme Addressing concerns about the new end-of-service payment scheme.

Addressing concerns about the new end-of-service payment scheme for non-Bahrainis, introduced by a 2023 Cabinet decision, Al Mannai stressed that it had no effect on early retirement options for Bahrainis. 

“The decision sets out how the payments are worked out and what employers owe,” she said. “It has no bearing on whether Bahrainis qualify for a pension or early retirement.”