The Kingdom ofBahrain experienced an unemployment rate of 3.9 per cent in 2014, with youth and women the most affected., women accounting for 6.7 per cent of the workforce. In order to provide income security to these groups, the Government of Bahrain launched a national Unemployment Insurance Scheme (UIS) in 2007. Bahrain’s UIS is supported by a strong legal framework (Law on Insurance Against Unemployment No. 78/2006) and is designed to provide basic income security for all working-age Bahraini residents and citizens. The Ministry of Labour oversees implementation of the UIS, administers registration and runs employment and training courses, while the General Organization for Social Insurance disburses payment of compensation.
The UIS is a mandatory contributory scheme and covers all Bahraini’s and foreign nationals employed in Bahrain’s formal and informal sectors. The scheme is financed by contributions of 3 per cent of employee wages shared evenly between the employee, the employer and the government. Benefits within the UIS consist of two types, an Unemployment Aid Benefit and the Compensation Benefit. The Unemployment Aid Benefit is available to first-time jobseekers and provides a monthly payment of BHD 150, or USD 398, to new university graduates and BHD 120, or USD 318, to others for a maximum of six months. The Compensation Benefit is available to unemployed persons and consists of a monthly benefit calculated at 60 per cent of the insured salary down to a minimum of BHD 150, up to a maximum of BHD 500, or USD 1,326, payable for a period of up to 6 months. In addition to the monthly benefit, the UIS provides job-matching, career guidance and training services. The UIS has assisted more than 6,000 jobseekers find employment since its inauguration in 2007.
The Government of Bahrain has adopted an active employment policy since the implementation of the employment schemes in 2006 and the current UIS in 2007. Bahrain’s UIS creates part of a national social protection floor that is essential in providing basic income security for working age groups.
Further Reading:
International Labour Organization (2005). Kingdom of Bahrain, Technical note, Social protection for the unemployed, Preliminary findings on unemployment insurance and assistance. ISBN: 92-2-115765-2. Accessed from http://www.social-protection.org/gimi/gess/RessourcePDF.action;jsessionid=wZhJXhspV7JfCnrgQnMxN8QyfFXnXpb58pgBTgzgDLpT3LD5jdNR!-475661094?ressource.ressourceId=8542 on December 2016.