BAHRAINIS who fail to secure a job before the expiration of their nine-month unemployment allowance could see the benefit renewed until they are employed.
MPs are set to debate amendments to the 2006 Insurance Against Unemployment Law that would see those refusing opportunities continue being treated as job-seekers, despite government reservations over the move.
The Labour and Social Development Ministry stated in writing that the proposed amendment could encourage people to refuse work.
“The allowance is temporary for serious job-seekers and is not there as a source of income for someone who wants to take life easy,” the ministry said.
“The word ‘suitable’ is vague and people could use it as an excuse to refuse job opportunities that come their way.
“We approved MPs’ proposal in 2019 to increase the allowance period from six to nine months to give jobseekers more time.”
Experience
The Social Insurance Organisation (SIO) said the proposal was expensive and would drain coffers, while robbing genuine job-seekers of financial support.
“The plan, if implemented, could lead to job-seekers deliberately rejecting work that offers them pay that is closer to – or a bit more – than their monthly allowance,” the SIO said.
“People should be encouraged to gain work experience and not to reject opportunities.”
MPs are also set to vote, for a second time, on rules aimed at allowing employees to take interest-free loans from their future pensions, under Islamic banking regulations.
Shura earlier this year rejected amendments to three pension laws: The 1976 BDF and Public Security Wages and Pension Law, the 1976 Social Insurance Law, and the 1975 Civil Servants Wages and Pensions Law.
The government had previously asked MPs to rethink the amendments, asserting that the current rule was open, though no specific mention was made of Islamic banking.
The government had asserted that requests for loans should be approved only after individual assessments.
It had also told MPs that it was working on a plan to allow deductible partial advance payments to continue, and to permit beneficiaries of pension funds to borrow from commercial Islamic banks under a parallel system.
However, MPs last year unanimously voted in favour of the move.
Parliament will vote on proposed amendments to the 1976 Housing Law that would see interest-free loans provided by the Housing Ministry.
Legislators will also seek amendments to the 2006 Social Welfare Law that would see monthly allowances increased from the current BD70 for an individual or BD120 for a couple and BD25 for each child. However, no decision has been taken on the new amounts.
The following proposals will also be debated and voted on:
- Establishing an anti-rumours unit under the National Communication Centre (NCC)
- Establishing a government-run specialised dentistry centre
- Compensating shrimpers
- Launching a new company for shrimp aquaculture with the government and private sector as partners, and
- Activating the agriculture treaty with Sudan.
mohammed@gdn.com.bh