Authorized Replace: Amendments To Pensions & Retirement Allowances – Worker Advantages & Compensation

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Our Affiliate, Fatima Alsayed expands on adjustments to laws of pensions and retirement allowances for presidency workers.

The principal regulation governing the pensions and retirement allowances for presidency workers is Regulation No. (13) of 1975 (the “Regulation”). On the 18th of April 2022, the Shura Council together with the Council of Representatives issued amendments below Regulation No. (13) of 2022 (the “Amendments “or “Amended Regulation”) to the provisions of the Regulation. Its provisions present enhanced monetary safety for workers working within the public sector by regulating their rights in direction of an allowance after retirement.

Amended Definitions


Amendments inside the Regulation have been made with the overarching intention of benefiting workers. Beforehand, the
worker was outlined as a Bahraini nationwide, between the ages of eighteen (18) and sixty (60) working as an worker within the public sector. The Amended Regulation not specifies the utmost age inside the definition of an worker, moderately solely particulars a minimal age of eighteen (18). A further component was added below the identical definition specifying the time period of employment similar to everlasting or non permanent positions below particular or indefinite time period contracts, receiving full or partial salaries with advantages.

Final Fundamental Wage

The final fundamental wage is outlined because the wage given for the final 5 years (versus being two years) previous to the date of retirement divided by 12. Nonetheless, the place the size of the worker’s service is lower than 5 years, then the final fundamental wage shall be calculated primarily based on the typical wage for the interval of employment .

Pension and Social Insurance coverage Fund

The Authorities Pension Fund established below the Regulation alongside the Normal Group for Social Insurance coverage
(“GOSI”) established by the Social Insurance coverage Act promulgated by Decree Regulation No. (24) of 1976 have now been merged below one fund titled “Pension and Social Insurance coverage Fund“.

Continuity of Employment

Article 4 of the Regulation determines the method of calculating the length of the worker’s service for retirement. With the amendments enforced, a brand new provision is added below the mentioned article giving the worker the power to proceed working till sixty-five (65) years of age.

Staff Not Entitled to Retirement Allowance

Pursuant to Article 12, if the worker’s service is terminated for any cause and isn’t entitled to a retirement allowance below any regulation or pension insurance coverage system, the worker may have the correct to proceed optionally within the retirement scheme if they’ve an efficient time period of service of a minimum of 5 years. A request shall be submitted to the GOSI through the first 12 months following the termination and previous to the settlement of the worker’s rights for retirement.

Authorities Contributions to Retirement Allowances

One of many major adjustments added to the Regulation is the rise of the federal government’s contribution to the worker’s retirement allowance. Previous to the modification, Article 11 of the Regulation supplied that the federal government’s contribution to the retired worker’s wage was 14%. Nonetheless, following the amendments such proportion elevated to twenty%. This transformation will significantly profit authorities workers as it is going to lead to growing their complete retirement allowance.

Staff Rights to a Retirement Allowance

Article 13 of the Regulation breaks down the situations the place an worker has the correct to an allowance after retirement. The Amendments now entitle the worker to have a retirement allowance after twenty (20) years of service if any of the next situations have been met: (i) the redundancy of the job within the sector; (ii) the dismissal of the worker by a non-disciplinary choice or a disciplinary/judicial choice; or (iii) pressured retirement.

Together with such Amendments, one other situation was added allowing the worker to an allowance within the occasion the place the worker retires after fifteen (15) years of service, or after twenty (20) years of service with the requirement of reaching fifty (50) years of ages.

Concluding Remarks

The Amendments favor the pursuits of the staff within the Kingdom of Bahrain by regulating their rights to a extra superior retirement plan. Offering workers with such added advantages will enhance productiveness and would be the results of a wave of retirement, subsequently opening job alternatives to new graduates.

The content material of this text is meant to offer a normal information to the subject material. Specialist recommendation ought to be sought about your particular circumstances.

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