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
Blog post
Partner Azeem Mohiuddin discusses how Qatar is implementing a strategic vision to develop a workforce that is prepared for future challenges and opportunities, highlighting the role of skilled migration in addressing gaps in the local workforce.
Media mentions
Partners Aaron Blumberg and Daniel Pierce discuss the SEVIS reversal and the continued challenges US international students may face.
Video
Practice Leader Kate Praphakornphiphat discusses Thailand’s Digital Nomad Visa—officially known as the Destination Thailand Visa (DTV)—and how you can apply for it.
Media mentions
Partner Aaron Blumberg explains that children of H-1B visa holders must secure a new legal status or leave the US when their H-4 dependent visas expire at age 21.
Media mentions
Partner Kevin Miner discusses unusual biometrics requests in H-1B and I-140 cases, noting they depart from standard practice.
Blog post
Regional Immigration Manager David Makau provides essential information about the launch of Bahrain's new Golden Visa portal, highlighting key details for applicants.
Video
Partner Diana Quintas shares everything you need to know about Brazil’s Digital Nomad Visa – a great option for remote workers looking to live and work in Brazil.
Media mentions
Partner Haseena Enu discussed her role in a pilot program mentoring Afghan legal professionals as they rebuild their careers in the US.
Media mentions
Partner Aaron Blumberg explained that SEVIS terminations are creating uncertainty for international students in the US and their employers.
Media mentions
Partner Amy Cococcia discusses the impact of tightened US immigration policies on work visa processing.
Media mentions
Partner Kevin Miner comments on USCIS’s atypical RFEs citing “adverse information” in employment-based petitions.
Blog post
Immigration Manager Virginie Todesco highlights how obtaining a business investor permit in Luxembourg can provide significant opportunities for accessing European markets and fostering business growth.
Blog post
Partner Azeem Mohiuddin discusses how Qatar is implementing a strategic vision to develop a workforce that is prepared for future challenges and opportunities, highlighting the role of skilled migration in addressing gaps in the local workforce.
Media mentions
Partners Aaron Blumberg and Daniel Pierce discuss the SEVIS reversal and the continued challenges US international students may face.
Video
Practice Leader Kate Praphakornphiphat discusses Thailand’s Digital Nomad Visa—officially known as the Destination Thailand Visa (DTV)—and how you can apply for it.
Media mentions
Partner Aaron Blumberg explains that children of H-1B visa holders must secure a new legal status or leave the US when their H-4 dependent visas expire at age 21.
Media mentions
Partner Kevin Miner discusses unusual biometrics requests in H-1B and I-140 cases, noting they depart from standard practice.
Blog post
Regional Immigration Manager David Makau provides essential information about the launch of Bahrain's new Golden Visa portal, highlighting key details for applicants.
Video
Partner Diana Quintas shares everything you need to know about Brazil’s Digital Nomad Visa – a great option for remote workers looking to live and work in Brazil.
Media mentions
Partner Haseena Enu discussed her role in a pilot program mentoring Afghan legal professionals as they rebuild their careers in the US.
Media mentions
Partner Aaron Blumberg explained that SEVIS terminations are creating uncertainty for international students in the US and their employers.
Media mentions
Partner Amy Cococcia discusses the impact of tightened US immigration policies on work visa processing.
Media mentions
Partner Kevin Miner comments on USCIS’s atypical RFEs citing “adverse information” in employment-based petitions.
Blog post
Immigration Manager Virginie Todesco highlights how obtaining a business investor permit in Luxembourg can provide significant opportunities for accessing European markets and fostering business growth.