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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Social Insurance Law

PART 4: MINISTERIAL ORDERS

  MINISTERIAL ORDER NO. 4/INSURANCE DATED 20.1.1979 WITH RESPECT TO INCLUDING PERIODS PRIOR TO PARTICIPATION IN THE SOCIAL INSURANCE SCHEME IN THE CONTRIBUTORY PERIOD

The Minister for Labour and Social Affairs, After referring to Articles 35, 36, 95 and 100 of the Law on Social Insurance promulgated by Amiri Decree Law No. 24/1976; And upon the approval of the Board of Directors of the General Organisation for Social Insurance at its 20th sitting held on 4.10.1978 of Form No. 7/Insurance with respect to the application for including a period prior to participation in the Social Insurance Scheme to the contributory period, Hereby orders :

Article 1

We hereby approve Form No. 7/Insurance which is attached to this order for use in the following objects :

- Application for including a period which is prior to participation in the Social Insurance Scheme to the contributory period of insurance against old age, disability and death.

- Estimating the amount required to be paid to the General Organisation for Social Insurance for the calculation of the cost of this period whether by a lump sum or by instalments.

- Declaration by the insured of his desire to include a prior period and his acceptance to pay the required sum whether by a lump sum or by instalments after being informed of the estimated sum.

- Declaration by the employer to pay the required monthly instalment to the General Organisation for Social Insurance out of the insured's wage in case of the letter's desire to pay the required sum by monthly instalments.

- The above mentioned Form No. 7/Insurance shall be given free of charge upon request by either the insured or the employer.

Article 2

If the insured wishes to increase the period of his contribution to the insurance branch against old age, disability and death for a non-occupational reason, he shall submit an application on Form No. 7/Insurance for including a period prior to his contribution to the above mentioned branch against the payment of an additional sum to be paid to the General Organisation for Social Insurance in accordance with Schedule No. 4 which is attached to the above- mentioned Law on Social Insurance on the basis of his age and wage on the date of requesting to include such period.

A fraction of a year in the computation of age shall be deemed to be a full year.

Article 3

After determination of the additional sum mentioned in the foregoing article and notifying the insured of its value, he shall pay it either by a lump sum or by monthly instalments until reaching the age of sixty.

The monthly instalments shall be calculated according to Schedule No. 5 which is attached to the Law on Social Insurance. To determine the amount of the monthly instalments, the total of instalments payable is divided by the number of full months from the date of the commencement of payment to the date of reaching the age of sixty. The resulting value of monthly instalment shall be rounded to the least ten fils.

The insured concerned shall notify the General Organisation for Social Insurance of the manner by which he wants to pay the additional sum, mentioned in Paragraph One of this Article, within a maximum of 15 days from the date of notifying him by the said Organisation by registered mail.

Article 4

The additional sum mentioned in the foregoing two articles shall be paid to the General Organisation for Social Insurance from the insured's entitlements with the employer, whether such entitlements are payable to him according to a private scheme or in accordance with the provisions relating to the leaving indemnity provided for in the Labour Law for the Private Sector issued as per Amiri Decree Law No. 23/1976.

The insured may pay to the General Organisation for Social Insurance the afore-mentioned sum or any other sums from any other source of finance for the same purpose such as by deduction from his monthly wage until payment of the estimated additional sum.

In all cases, in calculating the period estimated for the insured's pension for old age, disability and death, a period shall be computed in the insured's favour to the extent permitted by the sum(s) paid to the General Organisation for Social Insurance.

Article 5

If the insured wishes to pay the additional sum mentioned in paragraph two of the foregoing article by way of deduction from his monthly salary and paying it in to the General Organisation for Social Insurance, the said Organisation shall sent the above-mentioned Form No. 7/Insurance to the insured's employer so that the latter may execute a declaration in writing using the same form to deduct the monthly instalment from the insured's wage and pay it in to the Organisation on a monthly basis as long as the labour relation between them continues.

By signing the form indicated in the foregoing paragraph, the employer shall declare to notify the General Organisation for Social Insurance of the termination of the insured's service if it took place before payment of the rest of the outstanding monthly instalments.

Article 6

The General Organisation for Social Insurance shall contact the insured after working with a new employer to obtain from him a declaration to continue deducting the monthly instalment from the insured's wage and pay it in to the above-mentioned General Organisation, even if the new employer is not subject to the afore-mentioned Law on Social Insurance.

Article 7

This Order and the form attached thereto shall be published in the Official Gazette and it shall come into effect from the date of its publication.



Essa bin Mohamed bin Abdulla Al Khalifa Minister for Labour and Social Affairs

Dated : 20 January 1979.

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