TDT | Manama
Daily Tribune – www.newsofbahrain.com
Bahrain’s Ministry of Labour has opposed a parliamentary proposal to increase unemployment benefits by up to 100 Bahraini Dinars (BD), calling it unfeasible.
The lawmakers had advocated increasing monthly benefits for unemployed people with university qualifications from BD200 to BD300, and for those without a university degree from BD150 to BD200.
The ministry argued that the current system, established after extensive research into unemployment risks, funding and benefits, cannot be changed without a comprehensive study to assess the feasibility of increasing allowances and compensation.
“Any amendments would require a comprehensive study to determine the feasibility of increasing allowances and compensation,” the ministry stressed.
In line with the Ministry of Labor, the General Directorate of Social Insurance (GOSI) stressed that the purpose of the Unemployment Insurance Account is to provide necessary insurance protection against the risk of unemployment.
The group expressed concern that implementing the proposed increases could have a negative impact on the motivation and seriousness of unemployed people to search for work, creating a class of people who become dependent on unemployment benefits.
GOSI also warned of the negative impact on account income, increased expenses and the potential impact on pension and social insurance funds.
“This will result in reduced account revenues and increased expenses.”
In addition, this will have an impact on pension and social insurance funds as this group is not covered by pension and social insurance schemes,” GOSI said.
