MPs propose equalizing ZUS benefits for the public and private sectors

TDT | Manama

Daily Tribune – www.newsofbahrain.com

Good news for private sector retirees in Bahrain! Five MPs have proposed a significant amendment that could level the playing field when it comes to access to social security benefits. This move is aimed at improving the lives of many citizens and increasing the income of the Social Insurance Institution (SIO).

MPs Basma Mubarak, Ahmed Al Saloum, Maryam Al Dhaen, Abdulla Khalifa Al Rumaihi and Ali Al Doseri submitted a proposal to amend Article. 144 of the Social Security Act, originally issued by Decree-Law No. 24 of 1976.

The proposed amendment aims to replace the current wording of Art. 144 new regulations. They enable SIO to convert the pensioner’s entitlement into a lump sum calculated in accordance with Table No. 6 Benefits. The transformation must be subject to certain conditions and restrictions, as decided by the Minister based on the recommendations of the Management Board. This transformation may take place no more than once every two years from the date of the last transformation. Additionally, the pensioner may request that the conversion process be stopped at any time, subject to the conditions set by the Minister, including how the amounts returned to the organization will be dealt with.

The primary goal of the proposed act is to adapt private sector social security benefits to public sector benefits. Currently, public sector retirees can renew replacement loans every two years, while private sector retirees have to wait two years after the final installment is paid, creating a significant discrepancy. The amendment aims to equalize opportunities for both sectors, enabling pensioners from the private sector to renew loans on the same terms as in the public sector.

MP Basma Mubarak stated that the proposal aims to increase social security for citizens, improve the standard of living of Bahrainis and increase the income of the Social Insurance Organization (SIO) through interest charged on replacement loans.