The Social Insurance Organisation (SIO) announced a 1% increase in employer contributions to mandatory social insurance, effective January 2025. According to a circular sent to the owners of companies, the total employer contribution will rise to 17%.
In a report by Bahrain's Daily Tribune, the SIO stated that the increase is in accordance with Law No. (14) of 2022, amending certain provisions of the Social Insurance Law (Decree-Law No. 24 of 1976). The employee contribution will remain unchanged at 7%, plus a 1% contribution to unemployment insurance, for a total of 8%.
Contributions for those voluntarily insured will also increase by 1%, reaching a total deduction of 21% of their specified salary. Prior to the implementation of the 2022 law, the employer's contribution was 13%, inclusive of unemployment and work injury insurance. This was increased to 15% at the beginning of 2023.
The law mandates annual increases of 1% in monthly retirement contributions for all private sector employers until reaching 21% in 2028, including unemployment and work injury insurance.
The government previously increased its contribution by 2% starting July 2022, resulting in a total monthly government contribution of 20% per government employee's salary (including 3% for work injury insurance). The total contribution from the government and the employee is therefore 27%.