DECREE-LAW NO. 15/1987

WITH RESPECT TO AMENDING
CERTAIN PROVISIONS OF THE SOCIAL INSURANCE LAW
ENACTED BY DECREE-LAW NO. 24 OF 1976*

We, Essa bin Sulman Al Khalifa, Amir of the State of Bahrain,

Having reviewed the Constitution;

And Amiri Order No. 4 of 1975;

And Decree-Law No. 24 of 1976 with respect to promulgating the Law on Social Insurance and Laws in amendment thereof;

And upon the submission of the Minister for Labour and Social Affairs;

And with the consent of the Council of Ministers;

HEREBY DECREE THE FOLLOWING LAW :

Article 1

The Social Insurance Law enacted by Decree-Law No. 24 of 1976 shall be amended so that a hypothetical contribution period of sixty insurance months shall be added upon the calculation of the retirement pension in case the insured, he or she, completes or exceeds the contribution period referred to in each of Clauses 2 and 3 of Article 34 of the Social Insurance Law, whether all such period is an actual contribution period or includes a period or periods deemed as an insurance contribution period with regard to the insured who retires during five-year period from the effective date of this Law.

The Council of Ministers may, upon the submission of the Minister for Labour and Social Affairs and approval of the Board of Directors of the General Organisation for Social Insurance, issue and Edict for extending the period referred to in the foregoing paragraph.**

Article 2

For the provision of Article 136 of the Social Insurance Law referred to above there shall be substituted the following provision:

Article 136
"Subject to the provisions of Articles 39, 40 and 42 if a pensioner is re-employed in a remunerative employment which is subject to this Law, he shall combine between the pension to which he is entitled and the salary gained from such employment provided that the total shall not exceed the average salary or the salary upon which the pension has been calculated. If the total exceeds the said limit, the increase shall be deducted from the pension throughout the period during which he received that increase. If the period of the pensioner's re-employment in the remunerative employment is one year or more and his service was terminated in the remunerative employment is one year or more and his service was terminated for any reason except that of suffering a new employment injury or if there are complications of a previous employment injury, the pension shall, in both cases, be calculated according to the entire last period in accordance with the aforesaid Article 39 and shall be added to the previous pension, provided that the total of the two pensions or several pensions, as the case may be, shall not exceed the average salary upon which the first pension has been calculated.

Should the service of the original pensioner be terminated due to a new employment injury or complications of a previous injury or injuries caused prior to joining the remunerative employment referred to in the foregoing paragraph, or if his service is terminated due to an injury resulting in his death, he shall be treated according to the provisions of the employment injuries provided for in the Social Insurance Law, provided that the total of pensions shall not exceed the contribution salary upon which the first pension was calculated.

An insured, a pensioner or beneficiaries thereof shall also combine between the pensions provided for in the branch of insurance against old age, disability and death and in the branch of insurance against employment injuries, with the proviso that in all cases, the total pensions shall not exceed the average salary or the salary on the basis on the basis of which the pension has been calculated."

Article 3

As from the effective date of this Law, retirement pensions payable by the General Organisation for Social Insurance on the effective date of this Law, shall be amended according to the basis mentioned in the first article of this Law without payment of differentials for previous periods.

The General Organisation hereinabove referred to shall be bound to pay the retirement pensions amended in accordance with the above Article 1 by payment of the retirement pensions due to insureds after the enforcement of this Law. Any payment received by an insured in violation of Article 136 prior to the amendment thereof, in the manner set forth in the preceding Article 2 of this Law, shall be waived.

Article 4

The Minister for Labour and Social Affairs shall issue the necessary orders for the implementation of the provisions of this Law.

Article 5

The Ministers, each in his respective capacity, shall implement this Law which shall come into force as from the first day of the month following the date of its publication in the Official Gazette.

Essa bin Sulman Al Khalifa
Amir of the State of Bahrain

Dated: 18 November 1987