Insights

Social Insurance Organisation (SIO) — Employer Contribution Annual Increase

Annual 1% increases from 2023 to 2028

SIO

Law No. (14) of 2022 amended Bahrain’s Social Insurance Law (Decree-Law No. 24 of 1976), introducing mandatory annual 1% increases to employer contributions from 2023 to 2028, aiming to improve long-term sustainability. Key reforms include increasing employer contributions to 17% in 2025 and 18% in 2026 for Bahraini workers, while employee contributions remained unchanged at 8% (inclusive of 1% unemployment insurance).

Contribution schedule:

Year Employer rate Employee rate Total
2024 16% 8% 24%
2025 17% 8% 25%
2026 18% 8% 26%
2027 19% 8% 27%
2028 20% 8% 28%