Bahrain: New law allows private employees access to pension benefits
Source: Middle East Insurance Review | May 2018
The Shura Council has approved a law that will allow private sector employees to purchase assumed years of service so that they can enjoy relevant pension benefits in line with civil servants and military personnel.
This allows private-sector employees to add the assumed years to their years of service which will go towards determining their pension benefits.
The members of the upper house of the National Assembly approved the law through a unanimous vote at a weekly session in March, reported Gulf Daily News.
Under the law, the insured may request to include an assumed period of service in the insurance subscription period, for a maximum of five years. The total period shall not exceed the period entitling the employee at the retirement age to receive the maximum amount of pension against payment of an additional amount to the Social Insurance Organisation.
This will create equality between the employee in the private sector and the public sector or someone working in the military, services committee chairwoman Dr Jehad Al Fadhel said.
“The people who benefit the most from this law will be Bahraini residents, the percentage of people to whom this applies is large.
“This will also motivate Bahrainis to seek jobs in the private sector. There are many benefits in the public sector, but when you bring in those benefits to the private sector, there will be less pressure on the public sector.
“There won’t be long waiting queues for government jobs, and there will be motivation to diversify the job market in the private sector,” she said. M