Source-cited draft: payroll & social contributions for Bahrain (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Use OpenAccountants for Payroll & Social Contributions in Bahrain.
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Every figure is drawn from this Tax Guide and cited to its source.
PAYE-equivalent income tax withholding
None - no income tax is withheld from wagesPwC Worldwide Tax Summaries - Bahrain Individual
Employer contribution - Bahraini nationals (2025)
17% of insurable salarySocial Insurance Law (Decree-Law No. 24 of 1976), as amendedView source ↗
Employee contribution - Bahraini nationals (2025)
8% (7% pension/old-age + 1% unemployment insurance)Social Insurance Law (Decree-Law No. 24 of 1976), as amended
Scheduled annual increase (Bahraini employers)
Employer retirement contribution rises 1% per year until reaching 21% in 2028Social Insurance Law (Decree-Law No. 24 of 1976), as amendedView source ↗
Employer contribution - non-GCC expatriates
3% (work-injury insurance only)Social Insurance Law (Decree-Law No. 24 of 1976), as amended
Employee contribution - non-GCC expatriates
1% (work-injury insurance only)Social Insurance Law (Decree-Law No. 24 of 1976), as amended
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Other Bahrain computations in the OpenAccountants Tax Library.
GCC nationals working in Bahrain
Contributions follow the social insurance rules of the worker's home GCC stateGCC Unified Insurance Protection Extension scheme
Insurable salary ceiling
BHD 4,000 per monthSocial Insurance Law (Decree-Law No. 24 of 1976), as amendedView source ↗
Contribution remittance
Employer registers with SIO and remits monthly contributions via the SIO portal ((approx - confirm exact monthly due date))Social Insurance Law (Decree-Law No. 24 of 1976), as amended
Employer registration trigger
Employers must register with the SIO when hiring employeesSocial Insurance Law (Decree-Law No. 24 of 1976)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.