Social Insurance Calculation for Government Sector Employees

Social insurance is applicable to all Gulf Cooperation Council (GCC) citizens who work in Bahrain and are paid there.

Social Insurance Calculation for Government Sector (Bahraini and GCC) and Bahraini Private Sector employees
  • You can override the contributory salary at the person level.
  • If you haven't specified an override, then the country-specific balance Employee Government Sector Contributory Salary Base can be used to calculate the amount.
  • You can also define a formula to calculate the contributory salary at the legal employer level if no balances are fed.
    Note: For Bahrain, after checking for an override, the reference formula is checked. Contributory salary balances aren't available.
  • If none of the above are defined, the contributory salary uses the value of earnings elements which are subject to social insurance. These elements are identified through their secondary classification, and feed the balance Subject to Social Insurance.
  • Contributory salary is calculated for each month of the payroll processing.
  • For a Bahraini citizen, contributory salary will be used to calculate the employee and employer contributions as there are no maximum and minimum salary range.
    Citizenship Sector Balances Notes
    Bahrain Government

    Bahrain Social Allowance Base in Government Sector: User fed with social allowance elements that represent Social Allowance only

    Bahrain Employee Government Sector Contributory

    Salary Base

    A rule to limit social allowance to 150BHD is applied. This is applicable if the contributory salary is derived from either of the contributory salary balances, or from the subject to social insurance balance.

    Bahrain Private

    Bahrain Employee Private Sector Contributory Salary Base

    Bahrain Allowance Base in Private Sector: User fed with elements for commission and fixed allowances (not cost of living, housing or social allowance).

    A rule to limit fixed allowances to 100% of basic salary is applied.This is applicable if Bahrain Allowance Base in Private Sector balance is greater than Basic Salary. Excess amount is reduced from subject to social insurance.