Bahrain

The Bahraini government has expressed reservations about a parliamentary bill proposing mandatory social insurance contributions for self-employed individuals and freelance professionals. The development is particularly relevant to people operating independent businesses or professional activities whose earnings may fluctuate according to market conditions.

According to a report published by Al Bilad newspaper on Thursday, October 15, 2026, the proposed legislation seeks to amend Bahrain’s Social Insurance Law by making participation compulsory for certain categories of self-employed workers and freelance professionals who currently have access to a voluntary insurance arrangement.

The government argued that independent professional activities differ significantly from conventional salaried employment. Freelancers and self-employed individuals may experience substantial variations in their monthly income, making fixed mandatory contributions difficult to maintain during periods of reduced business activity.

Officials warned that compulsory payments could create additional financial pressure on these workers, potentially forcing some to use business capital or funds allocated to operating expenses to meet insurance obligations. Such requirements could affect the financial sustainability of smaller independent businesses.

The government consequently urged the Council of Representatives to reconsider the proposed amendment. It explained that the existing framework already allows eligible self-employed individuals and freelance professionals to participate voluntarily in the social insurance system under Cabinet Resolution No. 39 of 2014.

Supporters of the parliamentary proposal, however, argue that extending compulsory insurance coverage could provide greater financial protection for people working independently. They believe broader participation could help secure insurance benefits during retirement or other circumstances affecting an individual’s ability to continue earning an income.

The proposed legislation would amend Article Two of the Social Insurance Law issued under Legislative Decree No. 24 of 1976. It would add self-employed workers and freelance professionals to the categories subject to compulsory insurance, with the relevant groups to be determined by the competent minister following approval from the appropriate governing board.

In explaining its position, the government stated that broader insurance protection could be pursued through existing executive regulations without necessarily introducing new compulsory contributions. It also referred to insurance arrangements in other Gulf Cooperation Council countries where voluntary participation is available to certain independent workers.

It is important to distinguish the government’s position from a final legislative decision. The announcement does not introduce a new mandatory contribution, abolish the existing insurance system, or establish a blanket exemption from previously applicable obligations. It concerns the government’s reservations about a parliamentary proposal that has not become an enforceable law.

Eligible Bahraini citizens engaged in licensed freelance or self-employed activities can continue reviewing the voluntary insurance service offered through the Social Insurance Organization. Applicants should consult the official national services portal for eligibility requirements, supporting documents, and application procedures while monitoring any future legislative developments.

Source: Al Bilad Newspaper