Ministry of Labor and Social Development: Unemployment benefit is for citizens only, and it is not allowed to be paid to foreigners

09-11-2020

In response to reports in certain local newspapers about the eligibility of foreign workers for unemployment benefits under the Unemployment Insurance Law issued by Decree‑Law No. 78 of 2006, the Ministry of Labour and Social Development would like to clarify the following: Under the Unemployment Insurance Law, unemployment benefits are paid only to unemployed Bahrainis at a rate of BHD 200 per month for university graduates and BHD 150 for non‑university graduates, for a maximum of nine months per claim. This benefit is not available to foreign workers, as it is intended solely to support Bahrainis during their job‑search period. A Bahraini who is wrongfully dismissed from work also receives unemployment compensation amounting to 60 % of his salary for nine months, up to a maximum of BHD 1,000, protecting him from the repercussions of dismissal until he secures new employment. Although foreign workers in Bahrain likewise contribute 1 % of their wages to unemployment‑insurance premiums, Article 10 of the Unemployment Insurance Law grants them only compensation—not benefits—in cases of arbitrary or illegal dismissal. Such compensation equals 60 % of the basic wage and is limited to the period—30 days—specified by the Labour Market Regulatory Authority under Article 7 of Resolution 79 of 2009 on transferring a foreign worker to another employer. During this interval, the worker may settle financial and administrative matters but is prohibited from taking up other employment. The Ministry of Labour and Social Development emphasises to all parties and media outlets the importance of disseminating information accurately and in the proper context.