Worker pensioner needs,20-year service, 38-year old [Archives:2003/667/Business & Economy]

September 11 2003

Minister of civil service Hammoud Al-Soufi has proposed a draft law amendment on establishment of Yemen Service Fund, determining surplus labour by the ministry before referring them to the fund.
The measure comes in context of administrative and financial reforms aimed at re-distribution of labour according to needs of administrative units that have completed re-construction and re-structure.
The project presented to the Parliament cancels role of the fund in tackling surplus labour by early pension and being compensation. The project sets condition for those wishing to get pension salary stipulating that surplus labour should have maximum 20 years of service and at in age of 39.
According to the project the fund sets condition of 20 years services as maximum limit for improving pension salary and for qualifying those who haven't 20 year service, in order to encourage them for early pension. It gives surplus labour whose service ranges between 50 to 90 years, the right to choose suitable treatment, either by early pension or by compensation.
The project includes a form for calculating compensation and curbing personal opinions so that the fund could avoid any problems or pressures during implementation and payment of compensation to surplus labour. As for the maximum limit for surplus labour stay in the fund, it has been defined by 18 month.
According to the project the fund role's would be confined to being compensation so that the individual explains his need for training in response to requirements of labour market. The fund will be working on tackling situation of as many as surplus workers.
The project also aims at reducing proportion of employment inflation which is now more than 400 thousand workers and also to provide job opportunities for new graduated in the manner leading to reducing the proportion of unemployment in the labour market.