When EOSB rises from 4.2% to 8.4%
When does the expat end-of-service contribution go up to 8.4%?
The situation
The rate is 4.2% a month for the first three years of employment and 8.4% for each later year.
The law
- Edict No. 109 of 2023 on end-of-service benefits for expatriates: From 1 March 2024 employers pay SIO 4.2% a month for expatriates in years 0 to 3 and 8.4% after that
What it means for you
Track start dates so the rate switches on time. Example: salary BHD 900 in year four gives BHD 75.6 a month instead of BHD 37.8. Check the SIO bill reflects the change.
What to do
- Record each expat's start date.
- Flag the third anniversary.
- Check the SIO bill.
- Budget the higher cost.
We can do this for youSIO employer registration, monthly contributions and expatriate end-of-service contributions: BHD 150