Bahrain: Changes Implemented to the End-of-Service Gratuity System for Foreign Employees
May 16, 2024

Effective immediately, employers are now required to send the monthly end-of-service contributions for their foreign national employees to Bahrain’s Social Insurance Organisation (SIO) electronic portal within the first 15 days of each month. Previously, employers would set aside monthly contributions internally and provide a lump sum payment to employees at the end of their tenure. Therefore, the SIO, instead of the employer, is now responsible for disbursing the end-of-service gratuities accumulated by employees at the end of the employee’s employment. According to the new procedures related to the new process, employers must now provide up-to-date salary information for their foreign national employees via the SIO portal and must update employee information in the event of any remuneration adjustments. Gratuity is still calculated at 4.2% of the employee's monthly salary for the first three years, increasing to 8.4% for the following years until the end of employment. For employees with over three years of service before the effective date, the employer's contributions will be 8.4%. Employers must continue to cover their employees’ end-of-service contributions even when their employees are temporarily seconded to other employers. Additionally, the employer remains responsible for paying the gratuity to the employee for any years of service prior to the effective date of the new system (March 1, 2024). Employers who fail to comply with these rules will be subject to fines. These changes aim to protect employees from the risk of employers failing to pay out their end-of-service entitlements upon termination or resignation.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen

Media mentions
Partners Michelle Jacobson and Sarah Peterson discuss recent SEVIS terminations and visa revocations and explore what these developments may mean for international students and universities.

Media mentions
Senior Immigration Programme Manager Louise Collins, Senior Manager Sean Rhodes and Manager Andreia Ghimis explore the touring challenges UK orchestras face in Europe and discuss ways to ease mobility barriers.

Awards
Fragomen was recognized at the FACC Midwest Chicago Business Awards for "Best Business Development: US Company Expanding in France."

Media mentions
Practice Leader Kathleen O'Donnell, Manager Kirsty Moore and Immigration Paralegal Sean Pearce outline how the latest UK immigration white paper could affect engineering recruitment for employers in the North of England.

Video
#FragomenFC co-hosts Partner Rick Lamanna, Senior Manager Sergio Flores and Associate Jake Paul Minster are joined by Senior Associate Tuğba Özyakup—and an avid football fan—and Ismaïl Aissati—former professional footballer.

Blog post
UK Government Affairs Strategy Director Shuyeb Muquit discusses the UK's recent drop in net migration and emphasises the need for a considered yet swift response to address the economic and social impacts.

Media mentions
Manager Kirsty Moore and Trainee Solicitor Christina Azntaridou discuss the UK government's immigration white paper's potential impact on construction hiring.

Media mentions
UK Managing Partner Nadine Goldfoot reflects on how the UK’s immigration system might adapt to better support business and short-term mobility.

Awards
Negocios Now names Associate Ana Gabriela Urizar to its NYC-TriState Latinos 40 Under 40 Class of 2025 list.

Video
Learn the key requirements for digital nomad visas and find out which countries you can apply to as a remote worker or freelancer.

Media mentions
Practice Leader Olga Nechita provides practical guidance on navigating UK immigration routes, settlement options and key considerations for applicants.

Video
Senior Business Immigration Consultant Missy Mae Makil discusses the new DOLE rules for employing foreign nationals in the Philippines.

Media mentions
Partners Michelle Jacobson and Sarah Peterson discuss recent SEVIS terminations and visa revocations and explore what these developments may mean for international students and universities.

Media mentions
Senior Immigration Programme Manager Louise Collins, Senior Manager Sean Rhodes and Manager Andreia Ghimis explore the touring challenges UK orchestras face in Europe and discuss ways to ease mobility barriers.

Awards
Fragomen was recognized at the FACC Midwest Chicago Business Awards for "Best Business Development: US Company Expanding in France."

Media mentions
Practice Leader Kathleen O'Donnell, Manager Kirsty Moore and Immigration Paralegal Sean Pearce outline how the latest UK immigration white paper could affect engineering recruitment for employers in the North of England.

Video
#FragomenFC co-hosts Partner Rick Lamanna, Senior Manager Sergio Flores and Associate Jake Paul Minster are joined by Senior Associate Tuğba Özyakup—and an avid football fan—and Ismaïl Aissati—former professional footballer.

Blog post
UK Government Affairs Strategy Director Shuyeb Muquit discusses the UK's recent drop in net migration and emphasises the need for a considered yet swift response to address the economic and social impacts.

Media mentions
Manager Kirsty Moore and Trainee Solicitor Christina Azntaridou discuss the UK government's immigration white paper's potential impact on construction hiring.

Media mentions
UK Managing Partner Nadine Goldfoot reflects on how the UK’s immigration system might adapt to better support business and short-term mobility.

Awards
Negocios Now names Associate Ana Gabriela Urizar to its NYC-TriState Latinos 40 Under 40 Class of 2025 list.

Video
Learn the key requirements for digital nomad visas and find out which countries you can apply to as a remote worker or freelancer.

Media mentions
Practice Leader Olga Nechita provides practical guidance on navigating UK immigration routes, settlement options and key considerations for applicants.

Video
Senior Business Immigration Consultant Missy Mae Makil discusses the new DOLE rules for employing foreign nationals in the Philippines.