UNEMPLOYED Bahrainis could misuse a monthly government aid by opting to sit at home if it is provided to them indefinitely, warned the government.
A rethink is being urged by the government over a parliamentary legislation to provide monthly unemployment allowances to the jobless until they find ‘suitable’ jobs.
The Cabinet urged Parliament to spike the legislation, stating that the outcome of the amendments to the 2006 Insurance against Unemployment Fund would prove catastrophic.
Under the amendments presented in November last year, Bahrainis who fail to secure a job before the expiry of their nine-month unemployment allowance could see the benefit renewed until they are employed.
Additionally, those refusing job opportunities will continue to be treated as job-seekers.
“The move will lead to an emergence of individuals who would just sit at home and get paid, while they are able to work, under the excuse that the job being offered is unsuitable,” said the Cabinet.
“Instead of getting Bahrainis in finding jobs, they would be happy to remain jobless.
“This would upset the dynamics of the labour market, and also mean that people would be happy with lower easy pay rather than seeking higher by joining work, which would drop the average spending in the national economy and force many businesses out.”
In 2019, the allowance period was increased from six to nine months to allow job-seekers to explore more options.
First-time job-seekers with a degree or higher receive BD200 per month while others receive BD150 per month.
Those dismissed from their jobs receive monthly wages up to BD1,000 alongside compensations for the same period or whenever a new job is found.
“The unemployment support system is temporary and is intended to ensure the jobless are not burdened with expenses and the cost of living before finding suitable work,” said the Cabinet.
“We don’t want people to be dependent on allowances; we want them to be independent and build their lives on proper sources of income through work,” it said.
“Stability comes through work and not giving indefinite financial support.
“Again, we also wouldn’t want to see low-income workers creating chaos at their workplace just to get dismissed to get up to BD1,000 as monthly wages and making it a habit to profiteer from a fund intended to serve a bigger good.”
The Labour 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,” it 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 to give job-seekers more time.”
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,” it said.
“People should be encouraged to gain work experience and not to reject opportunities.”
A move to exempt employees from contributing one per cent of their monthly wages towards Bahrain’s Unemployment Fund was shot down by the Shura Council.
The fund’s revenues are made up of 1pc of monthly wages each from an employee, employer and the government – adding up to a total of 3pc.
Labour Minister Jameel Humaidan said at the time that the current format of the fund ensures social solidarity in which all segments of the community contribute towards the welfare of the unemployed or provide protection from unemployment.
He said that most of the fund’s contributions have come mainly from the 500,000 expatriate workers currently in the labour market.
The fund had savings of BD900 million before BD500m was withdrawn for various reasons.
Earlier, SIO officials said the fund’s revenues fell to BD77m last year from BD78m in 2020.
Out of the annual contributions, BD20m is paid by expatriate workers, they added.
MPs said at the time that the fund was in a healthy position despite paying for an early voluntary retirement scheme in 2019 and Bahrainis’ wages during the pandemic.
mohammed@gdnmedia.bh
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