Law Type:

Labour Law

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Monday, October 2, 2023

Understanding the Recent Changes in Social Insurance Contributions in Bahrain

Bahrain has made significant changes to its Social Insurance Law, affecting both Bahraini and expatriate employees and employers. The total social insurance contribution for a Bahraini employee is now 21%, with the employer paying 14% and the employee contributing 7%. For expatriate employees, the total is 4%, with the employer paying 3% and the employee contributing 1%. Employer contributions will gradually increase by 1% each year until it reaches 20% in 2028. Employers must comply with their legal obligations, including registering employees, providing accurate records of salaries and contributions, withholding and remitting employee contributions, and notifying the organization of changes in employee status. Non-compliance can result in penalties. It is important for companies to familiarize themselves with the changes to ensure the well-being and financial security of their employees.