Bahrain Implements New End of Service Gratuity For Expatriates
The Bahraini government recently introduced legislation (Edict 109 of 2023) requiring private sector employers to participate in a government program to fund and deliver the mandatory End of Service Gratuity (EOSG) payments for expatriate (non-Bahraini) employees. The new system, effective from 1 March 2024, requires monthly electronic contributions to the EOSG via the Bahrain Social Insurance Organization (SIO) portal by the employer. As a result, EOSG benefits accrued by an employee after 1 March 2024 will be paid by SIO, not the employer, at the end of the employee’s service period.
Employers must register and submit their non-Bahraini employees’ salary data through the SIO portal before 1 April 2024.