Reviewed: 10 October 2026. This is general information. Official sources are linked below; individual cases and applicable rules should be checked with the relevant authority or a qualified adviser.
Identify the applicable scheme first
The contributions on a Bahrain payroll depend on the applicable insurance arrangement and contribution period. Do not combine a pension percentage with work-injury, unemployment or other charges without checking which branches apply to the employee. A private-sector employee, public-sector employee and worker covered by a GCC extension arrangement should not automatically use the same table.
- Confirm the employee category and insured salary basis with SIO.
- Use the contribution period shown on the invoice, rather than an undated online percentage.
Official sources: SIO: Amendment Decrees — Law No. 14 of 2022, Articles One, Four and Ten
Why an old percentage can be wrong
Law No. 14 of 2022 changes Article 33 of the Social Insurance Law. Its Article Four introduces staged employer increases, while Article One specifies the contribution shares for that branch. These provisions should be read with the applicable other branches; the Article 33 figure alone is not a complete payroll invoice.
This guide does not publish a new all-in 2026 percentage until the current branch breakdown and salary basis have been verified. Check the official legislation and your SIO subscription details before running payroll.
Official sources: SIO: Amendment Decrees — Law No. 14 of 2022, Articles One, Four and Ten
Expatriate gratuity is a separate contribution
For covered non-Bahraini private-sector workers, SIO’s end-of-service scheme took effect on 1 March 2024. The employer contribution is 4.2% for the first three years of employment with the employer and 8.4% thereafter. Do not describe work-injury insurance alone as the employee’s complete employer contribution cost.
SIO describes the benefit basis as basic salary plus social allowance, if any, excluding other allowances. Confirm the salary record and treatment of service before March 2024 for the individual case.
Official sources: SIO: end-of-service gratuity for non-Bahrainis
Check the invoice and resolve discrepancies
Compare the employee category, recorded salary, covered period and contribution details on the SIO invoice. If the subscription amount or a penalty is disputed, SIO’s employer FAQ directs employers to request a review through its invoicing contact.
- Keep payroll records and the authority response with the invoice.
- Do not use an unverified online calculator as the amount to remit or deduct.
Official sources: SIO: employer FAQs, Monthly billing/auditing
Related guides
- LMRA employee transfer in Bahrain
- LMRA absence-from-work reports and grievances
- End-of-service benefits in Bahrain: SIO and earlier service
- Bahrain Dependent Visa: Spouse & Children
- Bahrain termination notice and final settlement
- Bahrain Flexi Visa: Registered Worker Permit
- Bahrain pension calculation: check your SIO scheme
- Leaving and returning to Bahrain: travel checks
Ask BahrainAgent about document support. Authority decisions and legal outcomes cannot be guaranteed.