May 18, 2022 2 min read

The Kingdom of Bahrain Payroll Outsourcing Alert – Social Security Change

Due to the implementation of the provision of Law No. (14) for the year 2022 which amends some provision of Social Insurance law, as promulgated by Legislative Decree no. (24) for the year 1976, the changes summarized below come into effect on 1st May 2022:

Social Security Employer Contribution

Kindly be informed that the subscriptions of the Bahraini workers wage employer’s share in the insurance will be increased by 2% as of May 2022 and will be increased by 1% at the beginning of each year starting from January 2023 until January 2028, bringing the total percentage of the employer’s share to 20%.

Social Security Employee Contribution

The Bahraini employee’s share will be increased by 1% bringing the total percentage of the worker’s share to 7% as of January 2023.

Below is the table explaining all-party contributions:

YEAREMPLOYER'S SHAREEMPLOYEE'S SHAREEMPLOYEE UNEMPLOYMENT INSURANCE SHARETOTAL
CurrentNewCurrentNewCurrentNew
May-2212%14%6%6%1%1%21%
Jan-2315%7%1%23%
Jan-2416%7%1%24%
Jan-2517%7%1%25%
Jan-2618%7%1%26%
Jan-2719%7%1%27%
Jan-2820%7%1%28%

Mercans’ Bahrain Payroll Outsourcing Solutions

While Mercans’ Bahrain Payroll Outsourcing alerts will allow you to stay on top the latest development in Bahrain’s payroll regulations, you should still get in touch with Mercans’ Bahrain payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Bahrain to Mercans and our Bahrain payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the Bahrain regulations.

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Mercans Statutory Alert Bahrain Social Security Changes
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