Changes in Bahrain Social Insurance Contribution
The Social Insurance Organization (SIO) is the official agency of the Kingdom of Bahrain for the advancement of social insurance and pension services to all people covered by the Social Insurance Law (Private Sector) and the Civil Law (Public Sector).
According to a recent announcement made by the SIO (Social Insurance Organization), From May 2022, the employer’s portion of the insurance subscription for Bahraini workers’ salary will be increased by 2%, and starting from January 2023, will subsequently increase by 1% every year (applicable from the beginning of every calendar year) till May 2028. In Jan 2028, this progressive increase will bring the total percentage of the employer’s contribution to 20%.
The Bahraini worker’s share will be increased by 1% starting in January 2023, bringing the entire proportion of the worker’s share to 8%. The employer is required to withhold these contributions and later remit them to the SIO on a monthly basis.
Contributions to the SIO are currently at 19 percent for local employees (12 percent employer; 7% employee) and 4% for expatriate personnel (3 percent employer; 1 percent employee).
For more information on payroll compliance, PEO & EOR services you could get in touch with Silberson’s Bahrain Team