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Tue 19 May 2015 10:25 AM

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Bahrain softens pension requirements

Under current laws, private sector employees are required to work for 15 years before they are eligible for a pension

Bahrain softens pension requirements
(Getty Images)

Bahrain is set to introduce one-off pension payments for people who work in the private sector for five years then quit.

Under current laws, private sector employees are required to work for 15 years before they are eligible for a pension.

However, under new plans approved by the Shoura Council, they only need to work for five years before they can apply for a one-off payment.

The hand-out would include all of the employee’s, their employer’s and government contributions to their pension fund.

The original proposal put forward in parliament would have seen private sector employees eligible after just three years of service, according to the Gulf Daily News.

But officials told the newspaper this would encourage people to change jobs frequently, putting substantial pressure on the government’s coffers and administrative processes.

“Parliament’s amendments were unrealistic with just three years of work being required,” committee secretary Abdulwahab Al Mansoor was quoted as saying.

The amendments will be now studied by parliament before final approval.

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