Rising employer SIO cost to 2028
Will employer SIO costs for Bahraini staff keep going up?
The situation
Law 14 of 2022 provides for yearly one point increases in employer contributions for private sector employers until 2028.
The law
- Social Insurance Law, Decree-Law No. 24 of 1976 as amended by Law No. 14 of 2022: Employers register staff with the SIO and pay monthly contributions; the employer share for Bahrainis rises by one point a year
What it means for you
Sources differ on the end rate, so budget a one point rise each year and confirm with SIO. Example: salary bill for Bahrainis BHD 120,000 a year means about BHD 1,200 extra per year of increase.
What to do
- Model a yearly one point rise.
- Confirm rates each January.
- Update budgets.
- Review pricing.
We can do this for youSIO employer registration, monthly contributions and expatriate end-of-service contributions: BHD 150