The recent session of Parliament’s Services Committee in Bahrain focused on plans to halt salary deductions for unemployment insurance and enhance benefits for jobseekers. Key officials, including the Labour Minister and LMRA chief, debated proposed legal amendments to address these issues.
One of the standout proposals is to abolish the 1% salary deduction from employees in both public and private sectors. Instead, the unemployment insurance fund would be financed using accumulated VAT revenues. Additionally, the committee suggested increasing unemployment benefits to BD300 monthly for university graduates and BD200 for other claimants.
Another proposal aims to replenish the unemployment insurance fund by allocating resources from the voluntary retirement programme, ensuring funds are returned within five years. The committee also discussed amendments to deny end-of-service payments to domestic workers who leave their jobs without following work permit regulations.
The session also focused on regulating expatriate employment, with a draft law proposing mandatory employment with a single employer for at least two years before switching jobs. Companies would no longer be required to repatriate deceased expatriate workers’ remains, under another motion.
Proposals also highlighted plans to Bahrainise specific private-sector roles within two years, requiring businesses to replace foreign workers with Bahrainis. Stricter controls on the annual issuance of work permits and extending the probation period for domestic workers from three to six months were also suggested.
The reforms reflect Parliament’s efforts to address unemployment, strengthen job security, and align labour market policies with Bahrain’s economic objectives. The proposals aim to create economic and social equity by balancing the interests of employers, employees, and jobseekers. The recommendations now await further deliberation in upcoming parliamentary sessions.
