Gov't Reserves Parliamentary Proposal Eliminating 1% Deduction
2019-10-28 - 7:28 م
Bahrain Mirror: The Social Insurance Organization reserved a proposal submitted by the House of Representatives to eliminate the 1% rate paid by the insured to the insurance account against unemployment and to limit the payment of contributions to the government and employers only.
In its response to the House of Representatives, the organization stressed that this amendment needs to have a specialized actuarial study conducted to show the future impact on the insurance account against unemployment, adding that the deduction of the monthly subscription on the insured may affect the financial situation of the account.
For its part, the Chamber of Commerce and Industry agreed to the proposal, suggesting that insured non-Bahraini pay only 1%, while those who suggested the proposal confirmed that the surplus of the insurance fund against unemployment is currently reaching 750 million dinars, and that this amount is clearly increasing more than the actual need of the fund, as the percentage of the actual need is only about 10% of what is collected annually. The proponents of the law stressed that the government should not bear financial burdens as a result of applying the proposal, as the amendment does not require the government to pay 1% for the insured.
The proposal is scheduled to be voted on in the upcoming session, Tuesday (October 29, 2019).