1. Implementing Payroll for Bahrain
  2. GCC Citizens Social Insurance Calculation for Bahrain

GCC Citizens Social Insurance Calculation for Bahrain

Social Insurance contributions are calculated and deducted from all employees who have a GCC nationality and are working in any of the GCC countries in accordance with the Unified Law of Insurance Protection Extension.

The Employee Social Insurance Calculation Card has been enhanced to capture additional information:
  • Whether or not it has been agreed that the country of citizenship will pay any difference in contribution amounts.
Note: Currency Conversion Rate across the country of citizenship and country of employment needs to be considered for social insurance calculation for GCC citizens working in Bahrain. You must set up conversion rates before processing social insurance for GCC citizens.
  • If the person is a Saudi citizen aged over 50 special rules will be applied no matter where they are working in GCC.
    1. In the calendar year if the Saudi citizen reaches age 50, then there is no change in the contributory salary even if the actual salary has changed.
    2. In the calendar year following the 50th birthday the contributory salary will be the lowest value of the Current year’s contributory salary or previous year’s contributory salary plus 10% or the previous year’s contributory salary if there is no change in the salary.
    3. If there continues to be no change in salary in subsequent years after the salary has been set using the preceding method, the same contributory salary will be continued to be used.
  • If the person is a Omani citizen working in private sector and having SI contributory salary less than the minimum salary, the employer will pay contributions on the actual contributory salary and the employee will pay contributions on the minimum salary plus the employee will pay the employer's share of contributions for the difference between their actual salary and the minimum salary. This is effective from 1st July 2020.
  • The employer rates for Bahraini citizens are now legislatively compliant for each year from 1st Jan 2024 up to, and including, 1st Jan 2028. The employer's rate for those working in the private sector will increase by 1% each year. The Calculation value definition Bahrain Employer Rate in Private Sector is updated from 1st Jan 2024 to 13%, and each year following by an additional 1%.