Bahrain abolishes $10,500 cap on pensions
Manama, January 15, 2013
Bahrain has abolished a BD4,000 ($10,507) cap on pensions, six years after being implemented, a report said.
The Shura Council approved a new bill, which was backed by the Cabinet after it acknowledged that the current cap was unfair and meant that high-ranking officials were being prevented from receiving their rights, according to the report in our sister publication the Gulf Daily News.
It has been already approved by parliament and will be now ratified by His Majesty King Hamad.
A Pension Fund Commission representative told council members the government acknowledged the problem associated with the article concerned in the Pension Law, issued in 2006, that imposes a cap on pensions meaning that they cannot exceed BD4,000 monthly.
"We have several cases that are being affected by this cap and abolishing it has been a plan with us for some time because it is unfair and means that a number of workers contribute more to pension funds, while receiving less than what they give," he said.
Services committee secretary Abduljalil Al Oinaiti said the cap negatively affected hard working officials in the public and private sectors.
"There are people who work from scratch to become chief executives or senior managers and this means that their wages reach up to BD10,000, but when they retire and instead of getting 80 per cent of their due rights as pensions, they only get BD4,000," he said.
"This means that their lives during retirement is hugely affected considering that the difference is around half of what they should be getting.
"The article was inserted by the government as a precaution in 2006 to prevent any meddling with wages that allows those going on retirement to get more than they deserve, but things have changed and now everything is done through a sequenced computerised system." – TradeArabia News Service
More Government & Laws Stories
- Saudi sets up panel on labour disputes
- Sand-dredging bill is hit by funding row
- Saudi rejects Maliki's charges on funding militants
- Independent foreign policy non-negotiable: Qatar
- Bahrain to crack down on bogus investments
- Bahrain urged to set up national plan to fight cyber crime
- Galfar ex-CEO gets 15 years' jail over bribes
- New law on family violence on the way in Bahrain
- Four blast suspects are remanded in Bahrain
- Bahrain to step up war on terror
- Norton Rose Fulbright moves London head to Dubai
- DSG ‘ready to implement Smart Dubai Strategy’
- Iraqi women protest new draft law
- Bahrain police 'face more danger in line of duty'
- Saudi names Brotherhood as terrorist group
- Qatar outraged over terror claims
- Bahrain PM condemns exploitation of children
- Qatar will not alter foreign policy: source
- Bahrain accuses Iran of fomenting trouble
- 'Put security before rights' in Bahrain: publisher
- 'Hizbollah trained Daih blast suspect'
- Key terror blast suspects named in Bahrain
- $2.6m Royal Fund for martyrs set up
- Bahrain to draw up new anti-terror laws
- GCC ROW: Qatar voices surprise over envoys pull out
- GCC tobacco tax rise ‘will fuel illicit trade’
- Saudi, UAE, Bahrain withdraw envoys from Qatar
- Bahrain explosion draws global condemnation
- GDN photographer hurt in blast is discharged
- Iran playing increasing role in Bahrain unrest