Latest news with #SocialInsuranceOrganisation
Daily Tribune
5 days ago
- Business
- Daily Tribune
New Shura Council proposal aims to increase monthly unemployment payouts by BD100
Unemployment payouts may rise by BD100 a month for some under proposals reviewed by the Shura Council's Services Committee. The draft law would increase monthly support to BD300 for university graduates and to BD250 for others seeking work. In a separate discussion, the committee looked at changes to the private sector labour law. These would make it harder for firms to end contracts on economic grounds. Employers would need to submit financial statements and relevant papers alongside any termination notice. They would also be required to pay full compensation and show they had explored alternatives before letting Bahraini staff go, except in cases of real urgency and within the limits set by law. Work permits Another measure put forward would give businesses a 30-day grace period to renew work permits, reducing the risk of fines and court action. The change is intended to ease pressure on employers, reduce irregular hiring and support closer oversight of the labour market. The committee met with senior figures from the Social Insurance Organisation and the Ministry of Labour, including Sahar Rashid Al Al Mannai and Ahmed Jaafar Al Haiki, during Monday's session. Dr Jameela Mohammed Redha Al Salman, who chaired the meeting, also received input from Ali AbdulAli BuHussain regarding the labour law amendments.
Bahrain News Gazette
12-05-2025
- Business
- Bahrain News Gazette
SIO and Beyon Connect Sign Agreement to Implement Enhanced eKey 2.0 System
Manama: Sahar Rashid Al Mannai, Chief Executive of the Social Insurance Organisation (SIO), and Christopher Held, CEO of Beyon Connect, have entered into an agreement to roll out the enhanced electronic key system, known as eKey 2.0. This partnership aims to bolster digital services and streamline processes for beneficiaries. According to Bahrain News Agency, Al Mannai emphasized the significance of integrating modern technologies to advance beneficiary services. The agreement is set to be effective in the latter half of the year. Al Mannai highlighted the importance of strengthening electronic verification processes to provide safer and more efficient services. This move is expected to expedite procedures and enhance user experience. Al Mannai stated that the collaboration aligns with SIO's strategy to update and enhance insurance services, ensuring they are more accessible to beneficiaries. It also supports the government's objectives to improve service quality and efficiency, promote digital transformation, and automate information systems. Christopher Held reiterated Beyon Connect's dedication to delivering cutting-edge digital solutions that cater to user needs and elevate the quality of electronic services.
Daily Tribune
08-05-2025
- Business
- Daily Tribune
MPs urged to reject 2023 unemployment fund accounts
Parliament's Financial and Economic Affairs Committee has called on MPs to reject the audited 2023 accounts of Bahrain's unemployment insurance fund, with a vote scheduled for today, after net assets fell by BD124 million due to a state transfer and rising benefit costs. The recommendation follows a four-month review by the committee, which advised against adopting the financial statements approved by the board of the Social Insurance Organisation. The fund's reserves dropped from BD587.6 million in 2022 to BD463.2 million in 2023. The fall was driven by a BD200 million government-authorised transfer intended to support employment and wage programmes. BD67.67 million was drawn during the year, with the rest recorded as liabilities to be used later. The committee warned that if such withdrawals continue without clear legal safeguards, the fund's long-term stability could be placed at risk. It called for firmer rules to govern transfers and more regular assessments of the fund's ability to meet its obligations. Although the fund closed the year with a surplus as contributions exceeded payouts by BD54.4 million, the committee raised concern over the direction of travel. Benefit payments rose by nearly 12 per cent while contributions rose by only 8.3 per cent. If that pattern continues, it said, the surplus may not hold. The audit, conducted by KPMG Fakhro and endorsed by the Social Insurance Organisation's board, found the statements to comply with international standards. Still, the committee said the numbers did not fully reflect longer-term pressures.
Daily Tribune
19-04-2025
- Business
- Daily Tribune
Government, MPs split on jobless benefits
Should unemployment benefits be increased? The government says no — but MPs are pushing ahead, confident that the answer is yes. They're backing a proposal to increase monthly unemployment support by BD100 for Bahraini jobseekers. If approved, unemployed university graduates would receive BD300, up from BD200, while non-degree holders would get BD250, up from BD150. However, this change will only take effect if approved by MPs on Tuesday, and then by the Shura Council. The Social Insurance Organisation (SIO) has expressed concerns, warning that higher payments might discourage people from seeking work. The government has formally opposed the proposal, citing potential strain on public finances. Supporters, including the parliamentary Services Committee, argue that current payouts are insufficient to meet basic living costs, especially in the face of rising prices and VAT. The proposed amendment targets Article 18 of the 2006 decree-law on unemployment government maintains that existing legislation already allows for benefit adjustments, with ministers authorised to revise figures and review the system every three years. It says higher payouts would put added pressure on the unemployment insurance fund. The Labour Ministry urged MPs to re-evaluate the draft, sharing updated figures: • As of late September last year, over 17,000 Bahrainis were registered as jobseekers. • Of these, 15,000 had either never worked or hadn't accumulated a full year of social insurance contributions. • More than 9,000 held university degrees, and women made up nearly three-quarters of the total. As of June, the unemployment insurance fund held BD502 million. Last year, BD36 million was paid out in benefits and compensation. Investment returns averaged around 6%, though this depends on market performance. Despite government pushback, if MPs approve the amendment, it will proceed to the Shura Council for final review.
Daily Tribune
29-03-2025
- Business
- Daily Tribune
5,500 early job exits
More than 5,500 people opted for voluntary retirement from both the public and private sectors in 2023, with the Social Insurance Organisation (SIO) reporting that the cost of service year buyouts totalled BD7.6 million. Despite the high number of early retirees, the head of the pensions' authority maintained that the new rules on expatriate end-of-service payments had no impact on Bahrainis' retirement options. In the public sector, 2,021 people retired in 2023, with 93 per cent doing so before the age of 60. The private sector saw 3,570 people step down, 89 per cent of them before reaching the official retirement age. This information came in a written response from SIO chief executive Sahar Al Mannai to MP Jalal Kadhem, who sought details on early retirement schemes in the private sector. Al Mannai revealed that 1,169 government employees applied to buy notional service years under the 1975 pension law. Of these, 593 met the criteria established by a 2023 Cabinet decision and were approved. As a result, 594 public sector employees took early retirement. For the private sector, governed by a 1976 law, 179 workers had their applications for service year buyouts approved, with 154 successfully retiring early. BD7.6 million in buyouts The total cost of buying service years reached BD7.6 million last year. Al Mannai explained that part of this sum is being repaid through monthly deductions from pensions. 'The law, before it was changed, allowed workers to keep paying after they left work if they hadn't yet covered the full amount,' she said. Kadhem also inquired if the SIO had borne any of the cost. Al Mannai responded firmly: 'The organisation pays pensions as and when they are due, as laid out in law. Coverage also extends to the self-employed, freelancers, and business owners.' No impact from expat endof-service scheme Addressing concerns about the new end-of-service payment scheme. Addressing concerns about the new end-of-service payment scheme for non-Bahrainis, introduced by a 2023 Cabinet decision, Al Mannai stressed that it had no effect on early retirement options for Bahrainis. 'The decision sets out how the payments are worked out and what employers owe,' she said. 'It has no bearing on whether Bahrainis qualify for a pension or early retirement.'
