Social Insurance Organization

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The Social Insurance Organization (SIO) is the Kingdom of Bahrain's official agency for the advancement of social insurance and pension services to all individuals subject to the Civil Law (Public Sector) and the Social Insurance Law (Private Sector) .

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Reports & Statistics

We believe of transparency and the right of contributors of SIO system and all concerned parties to access the related data, therefore we provide through this page the annual financial statement as well as the quarterly statistics report, and variety of instant statistics charts of live data.

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Social Insurance Law

  • Private sector
    • The consolidated Law (Private Sector)
    • Decree of Pension Law amending
    • Prime ministerial edicts
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    • Law No. 24 of 1976

      (pdf, 8120 KB)

  • Public Sector
    • The Law of Pensions (Public Sector)
    • Decree of Pension Law amending
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    • Law No. 13 of 1975

      (pdf, 20237 KB)

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The SIO provides several e-services to the concern parties through this portal saving effort and time to the beneficiaries and ensuring the quality of the services with the adoption of the principles of a unified government in the field of digital transformation of services provided to beneficiaries . This section explains these services and how to get benefit of them .

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Social Insurance Law

PART 1: THE CONSOLIDATED ACT ON SOCIAL INSURANCE

CHAPTER III

THE ESTABLISHMENT AND FINANCING OF THE
INSURANCE FUNDS AND PRINCIPLES OF
DETERMINATION OF INSURANCE CONTRIBUTIONS
AND PAYMENT THEREOF

PART 1
Establishment of Insurance Funds and
their Financing

Article 15

The Social Insurance Fund shall be established and shall be independent of the Government Budget and shall be sub-divided into accounts for each branch of insurance referred to in Article 1 of this Law and the General Organisation shall be responsible for its administration.
The assets of the Fund shall consist of the following income :-

  1. the monthly contributions paid by employers on behalf of their workers whether the employer's contribution required to be paid to the General Organisation or that contribution which the insured persons are required to pay in accordance with the provisions of this Law;

    the amounts paid by the employers to the General Organisation in respect of leaving indemnity calculated in accordance with the labour law or as expressed in employment contracts or in rules of basic conditions or collective agreements or as has been the practice for payment thereof, for past service immediately prior to participation in Social Insurance Fund;

    the additional amounts and interest due for delay in accordance with the provisions of this Law;

    the amounts paid by the Government Pension and Retirement Fund in respect of contributions by the insured and interest thereon, upon the transfer of the employee from the government sector to a sector in which he is covered by the Social Insurance Law;

    the loans which are paid annually to the Fund - when need arises - by the Treasury of the State in order to make up any deficit shown by an actuarial estimate in the financial situation;

    fees which are levied in accordance with the Law and are paid by the employers or by the insured;

    subsidies, donations and bequests which the Board of Directors decides to accept;

  2. profits derived from the investment of the Fund and other income resulting from its activities.

Article 16*

The financial situation of each branch of insurance in the Fund shall be examined at least every five years with the assistance of one or more actuaries.

*This new text is modified by Decree-Law No. 1/1985.

The examination shall take into account the value of current liabilities and if it is shown in the report of the actuary that a surplus is available, such surplus shall then be transferred to a special account in the Fund and may not be disposed of except with the approval of the Board of Directors for the following purposes :-

  1. Settlement in whole or in part of the deficit which the State Treasury has made good by payment of loans to the General Organisation for that purpose.

    Increase in pensions, compensations, daily allowances, additional grants, contributions and bonuses in the light of the cost of living index.The increase in pensions, compensations, daily allowances, additional grants, lump sums, minimum and maximum levels of pensions prescribed under the provisions of this Law as well as the percentages of all the mentioned shall be determined by an Order of the Council of Ministers, upon a recommendation from the Minister for Labour and Social Affairs.

  2. Establishment of a general reserve fund and special reserves.

PART 2

METHOD OF DETERMINING INSURANCE CONTRIBUTIONS,
PERIODICAL PAYMENT THEREOF AND ADDITIONAL AMOUNTS
FOR NON-PARTICIPATION IN THE INSURANCE OR PAYMENT
OF CONTRIBUTIONS ON FALSE WAGES, RETURNS AND
INTEREST ON DELAYED PAYMENTS

Article 17

The contribution prescribed in this Law shall be assessed on the basis of the total monthly wages received by the insured.

The determination of contributions due in respect of each month of the year, whether they be the employer's or those deducted from the wages of the insured at monthly intervals, may be upon the basis of the full wages received in the month of January in each year.

In respect of workers who enter employment after the month of January, the contribution shall be computed on the basis of full wages in the month of such entering to employment and until the end of the month of December and thereafter they will be treated on the basis of the preceding paragraph.

Contributions may be also paid in respect of certain classes of insured on the basis of a single lump sum payment for the whole year or any part or parts thereof or the insurance contributions may be determined according to the wage classification.

In all cases, the wages shall include the other components of wages paid in cash to the insured workers periodically or regularly as the Minister for Labour and Social Affairs shall to determine by Order.

Subject to the provision of Articles 19, 20, 21, 22, 23, 24, 25 and 26 of this Law, the Minister for Labour and Social Affairs, upon the recommendation of the Board of Directors, shall make an Order determining the method of calculating the contribution.

The benefits of the insured or that of heirs, as expressed in this Law, shall be calculated on the basis of the wages according to which insurance contributions have been assessed in accordance with the provisions of this Law.

Article 18

For the computation of the monthly wage of a daily-rated worker, the daily rate shall be multiplied by 30 and the resultant monthly rate shall be used for the purpose of calculating the insurance contribution.

Also, the computation of the monthly wage of a worker who is paid by piece-work or production or by the hour shall be on the basis of the monthly average wages for the actual period worked during the previous three months; and for new workers the average wage of a similar worker shall be taken as the basis for computation.

Article 19

The contribution paid to the General Organisation in respect of the insured shall not be less than the contribution paid in respect of a worker earning the specified minimum daily wage multiplied by thirty.

Article 20

Subject to the previous provision, the contribution payable in respect of an apprentice worker on the completion of his apprentice-ship period shall be not less than the contribution paid in respect of a worker who performs the same or similar work for the employer or establishment concerned.
If the apprentice does not receive any wage, the employer shall bear the contribution required of the worker in addition to the employer's contribution calculated on the basis of the preceding Article 19.

Article 21

A worker who is employed by more than one employer each employer shall have to pay separately on his behalf the full contributions, as required by this Law and in accordance with the Ministerial Orders made in implementation thereof, after the approval of the Board of Directors.
The total wages earned from the various employers shall be used for the calculation of contributions and for the settlement of benefits of the insured and that of the heirs as stipulated in this Law in accordance with the terms and conditions prescribed by the Ministerial Orders referred to in the previous paragraph.

Article 22

The contributions required under this Law shall be computed on the basis of the wage subject to calculation of the contribution before it is reduced by any deductions such as taxes and fees due or which may become due, or debts, or instalments and such like, and before making any other deductions from wages by reason of penalties or fines or for deductions for hours of late arrivals or for days of absence without pay or for any other reasons which may result in reducing the wage.

Article 23

The contributions which are paid by the employers on behalf of the insured shall be paid in full even if the worker's contract of employment is suspended or his wage is insufficient to meet it; and the worker's share of the contribution which is paid by the employer in this case shall be considered as a loan the repayment of which shall be in accordance with the provisions specified in the Labour Law.

Article 24

In the case of a worker seconded from an establishment subject to this Law for work to be performed in another establishment having a continuing relationship with the first establishment, the first establishment shall continue to bear the full obligations of insurance to the General Organisation including the insured's share, and it is for the first establishment to agree with the second establishment on the method of re-imbursement of the value of the contribution paid.

Article 25

Insurance contributions are paid for the month of entering employment of the worker on the basis of a full month if the total number of days worked during that month is at least fifteen days, and, similarly, contributions are paid in respect of the month of termination of service on the basis of the full month also, provided that the total number of days worked during that month is at least fifteen days; but no contributions are payable for the two months stated if the number of days is lesser.

Without prejudice to any other special regulations which may be issued in respect of temporary, casual or construction workers, and subject to the provisions of the previous paragraph, full contributions shall be paid for the month in which the worker commences employment even if the employment is terminated during the same month.

Article 26

In the calculation and payment of the insurance contributions required on behalf of all workers of an employer, a fraction of 100 fils shall be rounded to 100 fils where it is 50 fils or more and more fraction less than 50 fils shall not be taken into account.

Article 27

The contributions stipulated in this Law as due each month either by deduction from the wages of the insured or of those payable by the employer shall be paid to the General Organisation within the first fifteen days of the month following that in respect of which the contributions are due.

Article 28

The employer shall be under an obligation to pay to the General Organisation the full amount of the contributions due from him and from his insured workers, within the period referred to in the previous Article and he alone shall be responsible to the above mentioned Organisation for the payment thereof; and such employer is entitled to deduct from the wages of the insured the contributions due from him at the time of payment of such wages.

Where the employer fails to deduct the worker's share of the contribution upon payment of the wages, he shall not withhold such share from the wages in any form whatsoever at a later date.

Article 29

Every employer subject to this Law does not participate in social insurance in respect of all or some of his workers or who does not pay the contributions on the basis of the real wages or who does not pay the leaving indemnity referred to in Article 15 (2) shall be required to pay an additional amount equivalent to 20% of the contributions which have not been so paid and, where applicable, the amount due in respect of the leaving indemnity together with such additional amounts and the original contributions and amounts of private schemes, and the total amounts so due shall be paid to the General Organisation immediately upon request in writing without need for an executory judicial order.

Article 30

The amounts due in respect of leaving indemnities for the period prior to participation in social insurance may be paid, according to an Order to be issued by the Minister for Labour and Social Affairs after submission by the Board of Directors, in instalments over five years, and the employe shall pay each instalment at the end of each year with an interest of 5%, and in case of delay in payment on the due date the employer shall pay it to the General Organisation immediately upon receipt of a written request by a reply-paid registered letter, for such payment together with the additional amounts mentioned in the previous Article.

Article 31

The employer must pay to the General Organisation the social insurance contributions by the method, to be determined by Order of the Minister for Labour and Social Affairs with the agreement of the Board of Directors within the period referred to in the previous Article 27.

If payment is not effected within this period, interest shall be imposed upon the employers at the rate of 5% of the contributions due for each month or fraction of a month of delay, and he shall have to pay this to the Organisation together with the original amount without need of an executory judicial order and immediately upon receipt of a written request by reply-paid registered letter.

Article 32

An Order of the Minister for Labour and Social Affairs shall prescribe the payment of contributions due for certain categories of workers by means of stamps to be affixed to insurance cards or to insurance books prepared for this purpose by the General Organisation in accordance with the conditions and circumstances specified in such Order.

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Page Last Updated: 11-10-2021