Middle East: Scheduled Increase in Employer Monthly Contribution Rate

Effective January 2026, the employer monthly contribution rate increased by 1% for Bahraini nationals employed in Gulf Cooperation Council (GCC) countries to reach a total contribution for both employee and employer of 22% of the pensionable salary. This continues Bahrain’s current policy of increasing its employer contribution rate annually by 1% between 2023 and 2028.

As was the case previously, the maximum monthly employer contribution rate of Bahraini nationals employed in other GCC countries must not exceed the contribution rate paid for local employees in that country. If the contribution rate paid to local employees in that country is lower, the Bahraini employee must themselves cover the difference to ensure that a total contribution of 22% of the pensionable salary occurs.

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