Unemployment insurance account ‘stable’ amid withdrawals

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

The Ministry of Finance and National Economy has assured that withdrawals made from the Unemployment Insurance Account in recent years to finance government programmes and initiatives have not impacted the account’s sustainability or its ability to fulfill its obligations to unemployed beneficiaries.

In a response to a parliamentary question submitted by MP Jameel Mullah Hassan, the ministry emphasised the legality of all withdrawals, which were made from the account’s surplus through a decree, in accordance with Article 8 (c) of the Unemployment Insurance Law.

This article allows for withdrawals from the account by a Cabinet decision based on the minister’s recommendation and after the approval of the General Organisation for Social Insurance’s Board of Directors.

The ministry clarified that any withdrawals from the Unemployment Insurance Account were contingent on the existence of surpluses.

Furthermore, it highlighted the account’s sustainability, citing figures from the audited financial statements for 2022.

The data revealed that expenses for benefits in that year amounted to BD30.6 million, while revenues reached BD82.2 million, resulting in a surplus of over BD50 million.

Regarding the purposes for which the withdrawals were used, the ministry stated that they included funding the optional retirement programmes, covering a portion of the wages of insured Bahraini workers during the COVID-19 pandemic in 2020 and 2021, and financing part of the programmes for integrating Bahrainis into the labour market through employment, training, and wage support programmes implemented by the Labour Fund “Tamkeen.”

Competitiveness The ministry stressed the significant role of the programmes financed by the Unemployment Insurance Account in enhancing the competitiveness of Bahrainis in the labour market, making them the preferred choice for employment.

Additionally, these programmes stimulate the economy by developing the field of entrepreneurship, activities, and commercial businesses, thus achieving the account’s objective of creating and providing new job opportunities for citizens.