Parliament to Debate Bill Raising Marriage Grant for Female Pension Beneficiaries

The Council of Representatives is set to discuss, during its session scheduled for Tuesday, a draft bill to amend the General, Private, and Military Pension Law, aimed at increasing the marriage grant for female pension beneficiaries.

The proposed amendment seeks to raise the marriage grant payable to eligible widows, daughters, granddaughters, and sisters from the pension scheme to the equivalent of 24 months of the entitled pension, with a minimum of BD 1,000, compared with the current 18 months and a minimum of BD 540. Lawmakers say the revision is intended to keep pace with rising living costs and to better support beneficiaries in meeting financial obligations, noting that the current grant has remained unchanged for around 15 years despite inflation and increased expenses.

In its written remarks, the government urged a reconsideration of the draft law, arguing that it conflicts with the objectives of Decree-Law No. 21 of 2020 on pension and insurance funds, as well as Law No. 13 of 2022 amending provisions of Law No. 13 of 1975. These legislations included provisions to suspend annual increases on all pensions granted under any pension or insurance law or system.

The government warned that increasing the marriage grant from 18 to 24 times the pension value would accelerate growth in pension expenditures, negatively affecting the financial position of the Pension and Social Insurance Fund.

It also noted that the bill would require amendments to the state’s general budget, as it would increase government contributions to the pension fund. According to the government, the proposed increase could widen the budget deficit and public debt, undermining the Financial Balance Program under the Government Action Plan for 2023–2026, which was agreed upon by both the executive and legislative authorities.

Furthermore, the government stated that the bill lacks essential elements for implementation, as it does not adequately address the required financial aspects. It stressed the need for a comprehensive financial study to determine the size of the allocations and obligations arising from the proposal, along with identifying sustainable funding sources.

Representatives of the General Organization for Social Insurance echoed these concerns, warning that implementing the bill would create financial deficits in the pension fund and negatively impact the long-term sustainability of pension schemes in meeting their obligations.

They emphasized that increasing pension benefits without secured funding sources is among the main causes of pension fund deficits, underscoring the importance of identifying appropriate financing mechanisms to cover the proposed increase.