Government, MPs split on jobless benefits

TDT | Manama

Email: mail@newsofbahrain.com

Should unemployment benefits be increased?

The government says no — but MPs are pushing ahead, confident that the answer is yes.

They’re backing a proposal to increase monthly unemployment support by BD100 for Bahraini jobseekers.

If approved, unemployed university graduates would receive BD300, up from BD200, while non-degree holders would get BD250, up from BD150.

However, this change will only take effect if approved by MPs on Tuesday, and then by the Shura Council. The Social Insurance Organisation (SIO) has expressed concerns, warning that higher payments might discourage people from seeking work.

The government has formally opposed the proposal, citing potential strain on public finances.

Supporters, including the parliamentary Services Committee, argue that current payouts are insufficient to meet basic living costs, especially in the face of rising prices and VAT.

The proposed amendment targets Article 18 of the 2006 decree-law on unemployment insurance.The government maintains that existing legislation already allows for benefit adjustments, with ministers authorised to revise figures and review the system every three years. It says higher payouts would put added pressure on the unemployment insurance fund.

The Labour Ministry urged MPs to re-evaluate the draft, sharing updated figures:

• As of late September last year, over 17,000 Bahrainis were registered as jobseekers.

• Of these, 15,000 had either never worked or hadn’t accumulated a full year of social insurance contributions.

• More than 9,000 held university degrees, and women made up nearly three-quarters of the total.

As of June, the unemployment insurance fund held BD502 million.

Last year, BD36 million was paid out in benefits and compensation.

Investment returns averaged around 6%, though this depends on market performance. Despite government pushback, if MPs approve the amendment, it will proceed to the Shura Council for final review.