22-06-2021

His Excellency Mr. Jameel bin Mohammed Ali Humaidan, Minister of Labour and Social Development, lauded the directives of His Majesty King Hamad bin Isa Al Khalifa, the country’s great king, may God protect and preserve him, to extend a number of support initiatives within the financial and economic package to counter the repercussions of the COVID-19 pandemic. He also lauded the Cabinet decision, chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, may God protect him, to ensure the government pays the salaries of insured Bahrainis in private sector companies in pandemic-affected sectors for three months, from June 2020 to August 2021. The support covers 100% of Bahraini workers’ wages for June, and 50% for July and August 2021. He emphasised that this generous support fosters job stability for the national workforce, securing the labour market’s stability and reducing the pandemic’s impact on work and production levels. In light of the Cabinet’s decision, His Excellency issued a ministerial decree identifying the sectors affected by the COVID-19 pandemic, for which the government will cover the salaries of insured Bahraini workers via the Unemployment Insurance Fund from June to August 2021. The decree also clarifies the terms and conditions for Bahraini workers in private-sector establishments to benefit from this support. The decree enumerates the affected sectors: 1. The travel and aviation sector 2. Hospitality and restaurants 3. Personal services (salons, gyms, games, and entertainment) 4. The industrial sector 5. The health sector 6. The transportation and communications sector 7. The rehabilitation and training sector (including nurseries and kindergartens) 8. The retail sector (non-food) 9. The administrative services sector (public relations, media, and event organisation) 10. The real estate sector, engineering and technical offices, and contracting 11. The local newspapers and magazines sector 12. Any other affected sectors, excluding major companies, the insurance sector, the financial sector, communications, scientific, technical, and professional activities, university education and schools, hospitals, pharmacies, and the food retail sector. He indicated that 10,880 private sector companies and institutions will benefit from this support, covering 58,298 workers, at a total cost of approximately BD60 million over three months. This comprises BD30 million for June at 100% salary coverage, BD15 million for July at 50%, and BD15 million for August at 50%. The decree stipulates that financial support eligibility requires a complete or partial suspension of an establishment’s activities, or an impact from travel and tourism that compromises its ability to meet wages. The establishment must maintain its national workforce throughout the support period, cover the remaining proportion of Bahraini workers’ wages, and ensure complete, timely wage payments without any deductions—while taking measures to address the pandemic’s repercussions. Eligibility further requires that the Bahraini worker be insured under the Social Insurance Law through the end of May 2021, or have been employed and insured via the National Employment Program until the end of the month preceding disbursement. According to the decree, the Ministry of Labour and Social Development will refer the list of eligible establishments for financial support to the General Organisation for Social Insurance, which will transfer the support amounts to those establishments in the fourth week of each month.