If the proposal is approved, the Unemployment Fund would pay the salaries of more than 105,500 Bahraini private‑sector workers in April, a Gulf Daily News report said.
The initiative would cost up to BD100 million and is part of an emergency draft law to be discussed by MPs tomorrow to mitigate the effects of regional unrest on the local economy.
MPs will consider special changes to Decree-Law No 78 of 2006 on Unemployment Insurance to enable the fund to be utilised in one month, April 2026, to cover wages up to the insured salary ceiling as a precautionary measure to prevent potential lay-offs amid mounting regional economic pressures.
Mamdooh Al Saleh, chairman of Parliament’s services committee, said that the draft law makes the unemployment insurance fund a shield and not just a reactive compensation tool.
“Instead of waiting for Bahrainis to lose their jobs and then paying unemployment benefits, we are intervening early to ensure salaries continue and jobs are preserved,” he said.
MPs were presented with data from the Social Insurance Organisation (SIO) showing that 105,503 Bahrainis were registered in the private sector under social insurance by the third quarter of 2025, with a monthly private-sector Bahraini wage bill of BD94 million.
The balance in the unemployment insurance account is approximately BD600 million (unaudited 2025 figures). Ministry of Finance and National Economy officials told MPs that the draft law was a direct response to the financial stress on businesses due to regional conditions that have impacted liquidity and operations.
“The objective is to preserve existing labour relationships during exceptional economic circumstances,” officials added.
The Labour and Legal Affairs Ministry confirmed that up to 106,000 Bahrainis could fall within the scope of the measure and said labour market indicators would be monitored on a daily basis during implementation.
“Co-ordination between authorities will ensure the support reaches where it is needed while safeguarding public funds,” ministry officials said.