Bahrain Edict No. 109 of 2023, issued by the Prime Minister in December 2023, establishes a new end-of-service gratuity system for non-Bahraini workers in the private sector. It requires employers to remit gratuity contributions to the Social Insurance Organisation (SIO) monthly rather than paying them directly upon termination, effective March 1, 2024.
Monthly contribution rates:
- First three years of service 4.2% of monthly wage (~½ month’s wage per year).
- Each year beyond 3 years 8.4% of monthly wage (~1 month’s wage per year).
Note: EOSB accrued before 1 March 2024 remains the employer’s direct responsibility, to be paid upon termination in the traditional way.
