Bahrain

Bahrain has issued Decree-Law No. 44 of 2026 amending selected provisions of the Social Insurance Law originally promulgated under Decree-Law No. 24 of 1976. The new legislation was issued by King Hamad bin Isa Al Khalifa following a proposal submitted by the Prime Minister and approval by the Council of Ministers, introducing changes to the calculation of insurance contributions and the arrangements available to certain categories of insured workers.

The decree adds a new Article 19 bis to Bahrain’s Social Insurance Law, addressing the calculation of contributions across all branches of insurance for individuals covered by provisions relating to old age, disability and death resulting from non-occupational causes. The amendment establishes a framework for determining the contribution calculation basis for the specified insured categories.

Under the new provision, contributions will be calculated according to a minimum wage amount designated by a decision of the Council of Ministers. This minimum will serve as the basis for calculating contributions, with the stated objective of maintaining an appropriate relationship between the total amount paid into the insurance system and the corresponding benefits and entitlements available to insured individuals.

One important distinction is that the published decree does not itself establish a specific new minimum wage figure or announce a new universal contribution percentage. Instead, it provides for the relevant minimum calculation basis to be determined through a separate decision by the Council of Ministers, meaning additional official details may be necessary for affected individuals and employers to understand the precise financial implications.

Article Two specifies the scope of the newly introduced provision. It applies to insured individuals who meet the conditions for first-time registration under the Social Insurance Law after the new legislation comes into force. Accordingly, the decree does not state that the revised contribution calculation rules automatically apply to every person who was already registered in the insurance system before its effective date.

The legislation also introduces options for certain Bahraini nationals working outside the Kingdom or working within Bahrain for employers not subject to the relevant Social Insurance Law. Eligible individuals may choose to benefit from the insurance arrangements established for Bahrainis employed abroad and equivalent categories, using the newly defined contribution basis, or participate in a special insurance scheme to be regulated by a Council of Ministers decision.

However, the decree excludes individuals who were already benefiting from Law No. 31 of 2005 concerning social insurance for Bahrainis working abroad and equivalent categories before the new legislation became effective. This provision distinguishes existing beneficiaries from those who may become eligible to select one of the arrangements introduced under the amendment.

Regarding implementation, Article Four states that the decree will take effect on the day following its publication in the Official Gazette. The Prime Minister and relevant ministers are responsible for implementing its provisions within their respective areas of authority, making the official publication date essential for determining when the new requirements legally begin to apply.

The changes are particularly relevant to insured Bahraini workers, certain first-time insurance registrants and employers dealing with applicable insurance obligations. However, they should not be interpreted as a general salary increase, an automatic increase in retirement pensions, or a blanket change applying identically to every foreign worker residing in Bahrain.

The legislation represents a further development in Bahrain’s social insurance framework, with an emphasis on aligning contributions and benefits while providing specified categories of Bahraini workers with insurance options. Additional implementation details, particularly the minimum wage basis and any special insurance arrangements, will depend on subsequent decisions issued by the competent authorities.