Bahrain has activated its unemployment insurance system to pay April salaries to more than 105,500 Bahraini workers, under an urgent law unanimously approved by the Shura Council.
The legislation – which has now been referred to His Majesty King Hamad for ratification following Parliament’s approval – introduces a temporary and exceptional clause allowing the use of unemployment insurance funds to settle the wages of insured Bahraini workers for April 2026 only, within the ceiling of each employee’s insured salary.
The move comes as a rapid legislative response to exceptional regional circumstances that have strained business cash flows and threatened job stability.
The amendment adds a new item to Article 8(c) of Decree-Law No 78 of 2006, while maintaining all actuarial safeguards under Article 8(e).
Services committee chairwoman Dr Jameela Al Salman described the bill as a practical translation of Bahrain’s crisis management philosophy.
Dr Al Salman
“This project moves from compensating unemployment to preventing unemployment, from addressing impact to addressing causes,” she said. “It creates a balance between an employer’s ability to meet obligations and a worker’s right to income stability.”
She revealed that the unemployment fund currently holds around BD600 million, while the estimated cost of the measure ranges between BD80m and BD100m, covering about 106,000 Bahraini employees.
“The account enjoys excellent solvency, strong investment returns and is subject to regular actuarial reviews. This step will not materially affect its sustainability,” Dr Al Salman added.
Committee members met officials from the Labour Ministry and the Social Insurance Organisation (SIO), who confirmed technical readiness to implement the measure swiftly.
Shura second vice-chairwoman Dr Jihad Al Fadhel labelled the amendment part of what she called Bahrain’s ‘laws of hope’.
“This law tells every Bahraini worker: you matter, and losing your job or income is a red line,” she said. “Every job preserved today saves an economic, social and psychological cost tomorrow.”
Financial and economic affairs committee chairman Khalid Al Maskati highlighted the unemployment fund’s track record, noting that this would be the seventh withdrawal since 2019 for national economic purposes.
Mr Al Maskati
“A total of BD842m has been withdrawn from the fund since 2019 for noble economic objectives,” he said. “Yet the fund maintained net assets of around BD600m in 2025, proving its strong financial standing and flexibility as a social protection tool.”
Meanwhile, Shura first vice-chairman Jamal Fakhro praised the humanitarian intent, but urged broader economic measures.
“This is a new philosophy of proactive protection that Bahrain has applied in every crisis,” he said.
“But the problem is not only social – it has deeper economic dimensions. The government should not bear the burden alone. Major companies and the Bahrain Chamber must also play a role.”
He suggested that support be directed primarily to companies in genuine need, warning that small and medium enterprises and sectors such as tourism may face severe challenges in the coming months.
During the session, Labour and Legal Affairs Minister Yousif Khalaf stressed that the measure was necessary to protect the national workforce and preserve employment relationships under exceptional conditions.
Members repeatedly credited the leadership of His Majesty King Hamad and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, saying the law reflects Bahrain’s anticipatory approach to safeguarding social and economic stability.
mohammed@gdnmedia.bh
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