More than 105,500 Bahraini workers could have their April salaries paid through the unemployment insurance account under an urgent law to be debated at the Shura Council on Sunday.
The draft amendment allows a temporary and exceptional use of the unemployment insurance fund to settle the wages of insured Bahraini workers for one month only, as part of a rapid response to regional circumstances affecting businesses and cash flows.
The proposal adds a new clause to Article (8)(c) of the 2006 Unemployment Insurance Law, permitting wage payments for April within the ceiling of each worker’s insured salary, while keeping all existing actuarial safeguards intact.
Shura Council services committee chairwoman Dr Jameela Al Salman said the move reflects a proactive legislative approach to prevent job losses before they happen. She stressed that the fund’s financial strength allows such intervention without threatening its sustainability.
“The unemployment insurance account enjoys excellent solvency, strong investment returns and is subject to regular actuarial reviews. The government entities confirmed to us that this step will not create a material impact on the fund’s ability to meet its obligations,” she noted.
During its review, the committee met officials from the Labour and Legal Affairs Ministry and the Social Insurance Organisation (SIO), who detailed the technical and financial readiness to execute the measure swiftly if approved.
Officials explained that the ministry monitors labour market indicators daily and that the intervention is aimed at supporting all establishments without exception while preserving national jobs and stabilising employment relationships.
Dr Al Salman said the committee treated the draft with urgency because of its direct link to livelihoods.
“The matter is highly sensitive as it relates directly to people’s incomes for April. We prioritised this bill and immediately met the authorities concerned to ensure that execution mechanisms are ready and that support can be delivered without delay.”
She described the amendment as an evolution in the role of the unemployment fund.
“The fund was originally designed to compensate the unemployed. This law expands its function into a strategic preventive role – protecting the labour market from shocks and maintaining stability in employer-employee relationships.”
According to the committee, regular payment of wages is a cornerstone of market stability, feeding consumption, demand and economic continuity. Any disruption, members noted, could have ripple effects beyond individual workers.
The committee also praised Bahrain’s broader crisis management approach under the leadership of His Majesty King Hamad and the direction of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, saying the law reflects an institutional, anticipatory response to protect social and economic cohesion.
Parliament’s unanimous vote earlier this week cleared the way for the Shura debate, where the services committee has recommended approval of the law in principle and in detail.