MPs are set to debate three proposed legislation aimed at increasing benefits for pensioners.
The proposed amendments target the 1976 Social Insurance Law, the 1976 Military Pension Law, and the 1975 Government Pension Law, each seeking to expand pension-related benefits in response to rising living costs.
They also aim to increase the marriage grant paid to widows, daughters, granddaughters and sisters entitled to pensions from 15 times the monthly pension to 24 times – with a minimum of BD1,000.
Supporters argue that the existing provisions have remained unchanged since the 1970s and no longer reflect current economic realities or inflationary pressures.
However, the services committee has recommended rejection of all three bills following concerns over financial sustainability.
Committee chairman Mamdooh Al Saleh said the proposals would increase pension obligations without secured funding sources.
The government also opposed all three draft laws, warning that they contradict the objectives of Decree-Law No 21 of 2020 and Law No 14 of 2022, which introduced measures to curb pension expenditure growth and extend the lifespan of pension funds.
According to the government, the proposed increases would raise public spending, widen the budget deficit and disrupt the Financial Balance Programme for 2023-2026, agreed upon by both the executive and legislative branches.
The Social Insurance Organisation echoed these concerns, cautioning that none of the proposals included financial studies, implementation mechanisms or funding sources. It warned that approving the bills would increase fund expenditures at a time when maintaining a balance between revenues and benefits remains critical.
Similar reservations were expressed by the Supreme Council for Women, which noted that although the proposals carry social merit, they would lead to growing pension costs and strain fund sustainability.
In contrast, civil society groups, including the Bahrain Women’s Union, supported the proposals, describing them as fair and responsive to economic changes, particularly for women facing rising living expenses.
Despite the services committee’s recommended rejection, the legislative and legal affairs committee confirmed that all three draft laws are constitutionally sound, paving the way for a full parliamentary debate.
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