MLSD Minister praises the royal decree to pay 50% of the wages of workers in the most affected sectors

05-10-2020

Identifying the sectors most affected by COVID‑19 and eligible for financial support. Minister of Labour announces the conditions for eligibility to pay 50 % of citizens’ salaries in the private sector until next December. His Excellency Mr. Jameel bin Mohammed Ali Humaidan, Minister of Labour and Social Development, welcomed the issuance of Decree-Law No. (30) of 2020 by His Majesty King Hamad bin Isa Al Khalifa, the country’s great King, may God protect and preserve him, which adds a new clause to the Unemployment Insurance Decree‑Law. The amendment authorises, for three months from October 2020, the payment of up to 50 per cent of the wages of insured Bahraini workers in private-sector establishments most affected by the repercussions of COVID-19, in accordance with criteria set by the Ministry of Labour and Social Development. Humaidan stressed that the decree reflects the keenness of His Majesty King Hamad bin Isa Al Khalifa, the country’s great King, may God protect and preserve him, to ensure job stability for his citizens working in various private-sector establishments, especially in the most affected sectors. At the same time, it reflects the optimal use of available financial resources from the surplus unemployment insurance amid the current global health crisis and its repercussions on many sectors. He pointed out that, thanks to the royal directives and the efforts of the judicious Government, headed by His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister, may God protect him, most productive sectors in the Kingdom of Bahrain have overcome the repercussions of the coronavirus (COVID-19) pandemic. He also noted the Cabinet’s decision, taken at its weekly session last Monday and chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, may God protect him, to cover 50 % of the salaries of insured Bahrainis in the private sector’s most affected sectors for three months—from October to December 2020—under the terms and conditions set for this purpose. This measure implements the royal directives to unify national efforts to confront the pandemic’s repercussions while safeguarding the health and safety of citizens and residents, maintaining state programmes, injecting liquidity into local markets and supporting the economic sectors hardest hit by the coronavirus (COVID‑19) pandemic. Humaidan noted that the decision to subsidise 50 % of insured Bahrainis’ wages in the private sector builds on earlier measures: the Government covered the whole salaries of citizens employed in the private sector for April, May and June, and then shouldered 50 % of wages in affected establishments for July, August and September. The current step, therefore, continues that graduated support by meeting half the wage bill for Bahrainis in the sectors still experiencing full or partial closure and struggling to sustain operations. In light of the Royal Decree, and after coordination and consultation with the relevant official authorities, His Excellency Mr. Jameel bin Mohammed Ali Humaidan, Minister of Labour and Social Development, issued an executive decision identifying the sectors most affected by the repercussions of the coronavirus (COVID‑19) pandemic, and therefore eligible for financial support for the wages of Bahraini workers: the travel, aviation, tourism and hotel services sector; the entertainment, cinemas, conference and exhibition organisation sector; event halls and local newspapers; transportation companies and car‑rental companies; education, rehabilitation and training—such as nurseries, kindergartens, training and education institutes and rehabilitation centres for People of Determination —in addition to the retail sector (other than the sale of food and household goods) and the restaurant sector. Humaidan added that, to qualify for this wage support, an establishment must be a company or institution whose operations have been fully or partially suspended—or fundamentally affected by the downturn in travel and tourism—in a way that impairs its ability to meet wage obligations; must pledge to retain its national workforce for the entire support period; must pay the remaining portion of each Bahraini employee’s wage in full and on the scheduled pay‑date throughout that period; and must employ Bahraini workers who were insured under the Social Insurance Law promulgated by Decree‑Law No. (24) of 1976 as at the end of September 2020, or who were hired and insured via the National Employment Programme up to the end of the month preceding each disbursement. He added that the Social Insurance Organization (SIO) will fund up to 50 % of the insured wage of Bahrainis in the most‑affected private‑sector entities, drawing on savings in the Unemployment Insurance Fund. After consulting the competent authorities, the Ministry will forward the list of eligible establishments within the specified sectors and activities to the SIO, which will transfer the support in the fourth week of each month. This assistance, he said, reflects the Government’s determination to safeguard Bahraini jobs, ensure workforce stability and protect citizens’ living standards. He also commended employers for their cooperation and for maintaining the national workforce during these exceptional circumstances.