Bahrain Payroll Outsourcing Alert
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The Kingdom of Bahrain– Social Security Change.
The Social Insurance Organization (SIO) of Bahrain announced an increase in the contribution rates of Bahraini citizens employed in the Gulf Cooperation Council (GCC) region, in both the private and public sectors.
Social Security-Current change
Effective from May 2022, the employer contribution to social insurance for Bahraini nationals is increased by 2%, bringing the total contribution to 17%.
The employer contribution for the Bahraini citizen in the state where they are employed may not exceed the contribution that the state provides for its own citizens. Where the rate required by the SIO is higher than the rate applicable in the employer state, the employee shall be liable for the difference. For example, in the Kingdom of Saudi Arabia, the employer contribution is 9%; therefore, a Bahraini national employed in this state will contribute 8% to bring the total contribution to 17%.
Social Security-Future change
Effective January 2023 and until January 2028, the employer contribution will increase by 1% at the beginning of each year until the employer contribution reaches 17%, while the employee contribution will increase by 1% in January 2023 to bring the contribution rate to 7%.
The expected change is depicted in the table below:
| Date | Employee rate | Employer rate | Total contribution |
|---|---|---|---|
| April 2022 | 6% | 9% | 15% |
| May 2022 | 6% | 11% | 17% |
| January 2023 | 7% | 12% | 19% |
| January 2024 | 7% | 13% | 20% |
| January 2025 | 7% | 14% | 21% |
| January 2026 | 7% | 15% | 22% |
| January 2027 | 7% | 16% | 23% |
| January 2028 | 7% | 17% | 24% |
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Mercans Statutory Alert - Bahrain Social Security Changes777.29 KB