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Bahrain: MPs seek social safety net for workers after job losses

A significant proposal aimed at offering terminated employees in both the government and private sectors the option to continue pension contributions until they reach retirement age or secure new employment has been presented.The proposal, spearheaded by five MPs and led by Strategic Thinking Bloc member Bassema Mubarak, seeks to ensure that Bahrainis do not lose pension benefits or service period calculations due to gaps in employment.

The proposed amendments target the 1975 Civil Service Pension Law and the 1976 Social Insurance Law. Under the new provisions, employees whose services have been terminated for any reason would have the right to make voluntary contributions to their pensions as an employee and employer. This option would allow them to maintain their eligibility for pension benefits and avoid any discontinuity in their pension period calculations.To qualify for this optional scheme, the terminated employee must have completed at least one year in any job, as stipulated in the proposal.The proposal primarily seeks to provide greater financial security to Bahraini workers during periods of unemployment,” said Ms Mubarak.

According to Ms Mubarak, the initiative is designed to support employees who face job losses, ensuring they do not face long-term disadvantages in their retirement plans.“The ability to continue pension contributions during times of unemployment is essential for safeguarding workers’ financial futures and ensuring uninterrupted service period calculations for pensions.“This measure also aligns with broader efforts to enhance the social protection system in Bahrain, providing a safety net for individuals navigating job transitions or economic uncertainty.”

“The proposed amendments are expected to benefit a wide range of workers, particularly those in industries prone to economic fluctuations or restructuring. It aims to reduce the financial burden and uncertainty that often accompanies job loss. For many, the ability to maintain pension contributions during gaps in employment could significantly impact their retirement readiness and long-term financial stability.”Additionally, Ms Muabrak said the proposal reflects a commitment to ensuring equal treatment for employees in the government and private sectors, as both would have access to the same option under the amendments.

While the proposal is expected to gain widespread support from workers and labour unions, its financial implications for the pension system will likely be a key point of discussion. Allowing terminated employees to continue contributions may require adjustments in administrative processes and the allocation of resources to manage the programme.However, proponents argue that the long-term benefits, such as reducing dependency on social welfare programmes and increasing retirement security, outweigh any short-term costs.

“Bahrain’s move mirrors global trends where governments are introducing flexible pension systems to accommodate modern labour market dynamics,” said Ms Mubarak. “Countries around the world are increasingly adopting policies that allow voluntary contributions during unemployment to ensure workers’ financial security and preserve pension entitlements.”The proposal will undergo further scrutiny and discussions by Parliament’s services committee after immediate referral by Speaker Ahmed Al Musallam.

Legislators, labour representatives and economic experts are expected to weigh in on its feasibility and potential impact on Bahrain’s social insurance and pension systems. “If approved, the initiative would mark a significant milestone in labour and social security reforms in Bahrain, offering vital support to workers facing job losses while strengthening the country’s commitment to social protection and economic resilience,” claimed Ms Mubarak.