Tuesday 19 June 2018

Bahrain firms warned over pension plan

Manama, October 7, 2010

Companies which evade paying pensions for GCC nationals working in neighbouring states could face legal action.

That was the warning issued by Social Insurance Organisation's (SIO) Insurance Subscription Directorate data analysis acting chief Mariam Sa'ad during a meeting in Bahrain.

'Companies that fail to register their GCC nationals to the residing country's insurance system are breaking the law,' she said.

'They have to pay their pensions to their country of origin or risk paying a fine.'

Sa'ad was speaking on the sidelines of the 21st meeting of the GCC technical committee for pension and social insurance organisations, which concluded at the Ritz-Carlton Bahrain Hotel and Spa yesterday.

The two-day event was held to discuss issues linked to the extension of regional insurance laws implemented four years ago.

They aimed to broaden social insurance of a GCC country to cover its residents working in a neighbouring state.

Unifying the laws to have a single blueprint, stating each country's rules and conditions, was another major issue highlighted at the meeting.

'We are trying to unify the law so it becomes easy to understand and implement,' said Sa'ad.

'Each country has its own conditions but that could be discussed.'

A total of 869 Bahrainis were recorded to be working in other GCC states, revealed Sa'ad.

She speculated that the number could rise to 2,000 Bahrainis in the coming years with improved unification of the law.

Meanwhile, organisation deputy president for legal and insurance affairs Jamal Al Mulla revealed the committee was also working to establish a network to exchange information between the six states.

'The system will ease exchanging information of other GCC nationals in neighbouring countries,' he said.

'It will also allow for business owners and other organisations to be aware of the law and its conditions.'

Recommendations that will be presented to heads of each country's social insurance organisation were also outlined at the event.

It will act as a blueprint plan for the 10th GCC meeting for presidents of pension and social insurance organisations, to be held in Kuwait next month.-TradeArabia News Service

Tags: Legal Action | finance | pensions | Bahrain firms | GCC workers |

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