Bahraini Lawmakers Plan Minimum Wage Increase For Citizens
In a bold move aimed at turbocharging the economy by fostering a more robust workforce, Bahraini lawmakers are gearing up to spend a staggering BD200 million from the unemployment insurance fund.
The overarching goal?
To elevate minimum wages across various professional echelons while turbocharging the training avenues available to Bahraini workers with a one-time stimulus.
Sensing the potential of the initiative in bolstering living standards and fueling economic growth, parliamentary committees concerned have thrown their weight behind the proposal, recommending its approval.
Both the Services Committee in the Council of Representatives and the Financial and Economic Affairs Committee in Parliament are rallying behind the initiative.
Also backing this progressive legislation is the Social Insurance Organisation, signalling a unified front.
The Bahrain Chamber said a green light from them hinges on their readiness to give the private sector a seat on the table in drawing up the criteria.
They say allowing the private sector to have a say would allow businesses to provide input on promising sectors and vacant positions.
Come Tuesday, this one-time stimulus will reach MPs for their vote on this crucial move. Should the proposal sail through, it’s poised to unleash vital funds essential for the Kingdom’s economic revival.
MPs say this substantial allocation will not only prop up wages but also fortify employment and training programmes tailored for citizens, fostering a more robust workforce for Bahrain’s future.
A favourable vote will add a new item number 7 to paragraph G of Article 8 of Decree Law No. 78 of 2006 regarding unemployment insurance. Embedded within this decree is a strategic plan to channel the funds into Tamkeen’s initiatives, spanning both existing projects and new ventures.
MPs believe that this would accelerate and strengthen training programmes. They say the high-level training programmes will not only chip away at unemployment rates but unlock a reservoir of untapped potential that would drive private sector growth.
Nearly 17,000 unemployed citizens
According to the Labour Ministry, there were 16,856 unemployed Bahraini citizens in the first half of 2023, with minimum wages of BD500 for degree holders, BD430 for diploma holders, and BD350 for secondary graduates.
Meanwhile, the average wage for Bahrainis in the private sector was BD826.
As the voting approaches, experts view that a favourable outcome isn’t just a win for lawmakers; it’s a resounding victory for Bahrain’s economic resilience and the bright future it holds for its citizens.
