Bahrain to Gradually Raise Employer Insurance Contributions

The Social Insurance Organization (SIO) has announced that employers’ monthly insurance contributions will continue to rise by 1% each year, reaching 20% by 2028.

Nawal Ahmed Al-Awaid from the SIO’s Legal Affairs Department explained that the contribution rate currently stands at 17% in 2025, and will increase to 18% in 2026.

She stressed that the employee’s share of contributions will remain fixed at 7%, in line with current laws.

Al-Awaid noted that these contribution rates apply to employees working in the private sector in Bahrain as well as Bahraini citizens employed in other GCC countries, since they are covered under the mandatory insurance system.

The remarks were made during an online workshop titled “Insurance Rights and Benefits for Public Sector Employees” held on Thursday.

Al-Awaid outlined the conditions for retirement pensions, stating that employees become eligible after completing 15 years of service at the age of 60, or upon ending their service and waiting until they reach that age. Employees may also qualify if they complete 20 years of service before turning 60.

If the service period is shorter, workers are entitled to a one-time compensation payment instead of a pension.

She clarified that service periods of six months or more are counted as a full year, while shorter periods give employees options such as refunding their contributions, continuing with voluntary contributions to complete a full year, or purchasing the remaining service period.

Regarding maximum pension benefits, she said employees with 45 years of service have two options:

• Receive a pension with an additional 15% bonus for up to seven extra years beyond 40 years of service, or

• Add 10% to their pension for five extra years, bringing the total pension entitlement to 90%.

For example, an employee with 47 years of service would receive 90% pension for 45 years, plus a 15% bonus for the additional two years.

Al-Awaid also emphasized that individuals cannot receive more than one pension at the same time. If a person qualifies for multiple pensions under different laws, only the higher amount will be paid, or the difference will be settled.