The Bahrain Labour Ministry has opposed a parliamentary proposal seeking to increase unemployment allowances by up to BD100, deeming it non-viable.
Lawmakers had advocated for raising the allowance from BD200 to BD300 per month for unemployed individuals with university qualifications and from BD150 to BD200 for those without university degrees.
The ministry asserted that the existing system, established after extensive studies on unemployment risk, funding sources, and benefits, cannot be modified without a comprehensive study to assess the feasibility of increasing allowances or compensation.
“Any modification requires a comprehensive study to determine the feasibility of increasing the amount of the allowance or compensation,” the ministry stressed.
In alignment with the Ministry of Labour, the General Organisation for Social Insurance (GOSI) emphasised that the purpose of the unemployment insurance account is to offer necessary insurance protection against the risk of unemployment.
The organisation expressed concern that implementing the proposed increase might negatively impact the motivation and seriousness of unemployed individuals in seeking job opportunities, potentially creating a segment dependent on unemployment benefits.
GOSI further warned of adverse effects on account revenues, increased expenses, and potential impacts on the pension and social insurance fund.
“This would lead to a decrease in account revenues alongside an increase in expenses.
Moreover, it would impact the pension and social insurance fund due to this group not being subject to pension or social insurance systems,” the GOSI stated.