Tamkeen’s employment, training and wage support programmes received a BD200 million boost yesterday.
All MPs, with the exception of Jalal Kadhem, voted in favour of a decree issued by His Majesty King Hamad in September last year to support the work of Tamkeen (Labour Fund) by financing part of the programmes to integrate Bahrainis into the labour market.
Parliament’s services committee had recommended the bill be given the go-ahead following a presentation by Tamkeen and the Labour Ministry, with Social Insurance Organisation, the Bahrain Chamber and the Bahrain Free Labour Unions Federation (Al Hurr) backing the move.
A group of MPs proposed during the weekly Parliament session yesterday that a fixed “living” allowance be given to Bahraini employees in the private sector.
The proposal is spearheaded by the Strategic Thinking Bloc led by its president MP Ahmed Al Salloom who urged his colleagues to work together to have it included in the 2025-2026 national state budget.
“We notice that living conditions and prices have begun to increase in recent years, and the gap between the salaries of public and private sector employees has widened,” said Mr Al Salloom.
“There is a need to provide support directed to the private sector especially since the (living allowance) for government employees was increased,” he added.
“Therefore, I believe that we need to approve a ‘living allowance’ for private sector employees, similar to the ‘living allowance’ found in the public sector.
“It is true that this allowance is not approved in the current state budget, but we can approve it in the next budget.
“Especially since we are witnessing during this year a significant improvement in revenues and significant progress in the financial balance programme.”
MP Hassan Bukhammas said Tamkeen’s support was being misused by some companies.
“Some companies, mainly foreign, hire Bahrainis and let them sit at home for partial payments while they pocket Tamkeen’s financial support in all ways and forms,” he said.
“There has to be clear checks to ensure this misuse ends as it is a squander to financial resources.”
MP Mamdooh Al Saleh said that many expats brought in as labourers have become businessmen under new work permits.
“We want foreign investors and there are several Asian billionaires in a number of much-needed sectors who want to come here and not unskilled labourers who have been turned into businessmen which they are not.”
Cabinet Affairs Minister Hamad Al Malki, who is politically responsible for Tamkeen, said all observations put forth by the MPs would be considered.
The Cabinet Affairs Minister speaks in Parliament
“The points brought up by MPs are valuable and will be taken on board not just as Tamkeen implements its three-year strategy, but also it draws up the future strategy beyond that.”
Labour Minister and Labour Market Regulatory Authority (LMRA) board chairman Jameel Humaidan corrected MPs that there were more than 16,000 Bahraini jobseekers and not 26,000.
He added that 16,856 jobseekers were registered with the ministry until the end of the second quarter of 2023 while average pay for Bahrainis in the private sector reached BD826 during the same period.
“We are improving and are listening, but facts have to be always stated right, for us to get a push in the right direction at all times.”
Higher wages for citizens and more funds to help the private sector form the crux of Tamkeen’s largest initiative since its inception to support 50,000 Bahrainis per year.
It aims to increase wages for Bahrainis in the private sector, create more jobs, train citizens with the skills they need to succeed and help them get into leadership positions as well as support private sector growth and expansion.
“There are 19,000 expats earning above BD1,000 per month and for that we have introduced the wage support for Bahrainis to elevate them and encourage employers to promote them,” said Mr Humaidan.
“There is a positive shift as employers are coming forward to promote Bahrainis, give them better positions and pay, and in return getting funding for that over two years,” he added.
“We have clear indicators on many things including Bahrainis’ promotion and the system gives us regular updates on our progress or where we need to improve.
“The automated system also divides jobseekers in line with vacancies and yes employment is slower nowadays, but we are much below the 30 per cent international levels.”
Among the initiatives, the first focuses on providing enhanced employment support programmes with higher caps and new features. This will help more Bahrainis get high-paying jobs, including in specialised fields and leadership positions.
Tamkeen will encourage apprenticeships to train and employ Bahrainis. As part of this, the minimum wage for National Employment Programme participants has been increased by BD50 so that high school graduates get BD350, diploma holders BD430 and bachelor’s degree holders get BD500.
The maximum wage subsidy for unemployed Bahrainis hired by private sector companies has been raised to BD800 for university graduates, BD600 for diploma holders and BD450 for high school graduates.
Tamkeen is also expanding the eligibility period for its support programmes for new labour market entrants from 12 months to 24 months.
It will further allow employees enrolled in the National Employment Programme for two years to request support to increase their wages.
The support period for Bahrainis employed in executive and leadership positions has been extended from 12 months to 24 months, and the stipend for on-the-job training has been raised to BD200.
The second initiative focuses on supporting Bahrainis’ career development in the labour market with an unprecedented budget. Under this, wages of private sector employees who earn less than BD1,500 will be increased by up to BD300 with Tamkeen support. The support period for the programme will be extended to 24 months and will cover 100 per cent of the wage increase, subject to the employer’s approval.
Tamkeen is also introducing a new track to support 100pc of the difference in wages for employees who move between private sector enterprises for 24 months.
New incentives are being brought in to encourage employees with salaries of less than BD600 to take up specialised training courses. Tamkeen will cover the full cost of professional qualifications training for Bahrainis and extend the support period for those employed in executive and leadership positions from 12 to 24 months.
As for the third initiative, the Labour Fund is launching new support programmes for businesses of all sizes and growth stages.
These will help enterprises launch new ideas and innovations, expand locally and internationally, and employ more Bahrainis.
Tamkeen will also provide incentives for businesses that achieve financial growth.
The decree has been now referred to the Shura Council for review.
mohammed@gdnmedia.bh
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