Amendments to the social security law were announced in Bahrain, raising social security contribution rates (primarily for employers) for retirement, survivors' and disability pensions; revising the pension benefit formula and the basis for increasing pensions in payment; and requiring that the mandatory employer end-of-service benefits be paid via the Social Insurance Organization (SIO).
Many details are not yet available on the specific content and timing of the changes, but expected key changes include:
The amendments also increased monthly pensions in payment by 60 dinars per month, effective retroactive to January 1, 2021.
As most of the workforce in the private sector is composed of foreign nationals who are covered only by workers compensation and unemployment insurance, the immediate impact of the changes is expected to be modest. Requiring employers to meet their end-of-service benefit obligation via payment to SIO, which then pays the employee, is intended to ensure that employees receive the money they are due at the end of service. More substantive changes to social security and end-of-service benefits may result from the implementing regulations, but there is no clear timetable for when they will be issued.