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Bahrain Government to Pay the Salaries of Nationals in the Private Sector for 3 Months

Published: 09/04/2020

Following an announcement last month of an unprecedented BHD 4.3 bn stimulus package of policy measures to support citizens, residents and businesses in the Kingdom, the government has now launched an eService to facilitate salary payments.

The eService platform has been launched on the Social Insurance Organisation (SIO) portal and is now open for employers to register their IBANs to enable the payment of salaries of Bahrainis in the private sector from the unemployment fund for a period of 3 months commencing this month.

 

What do you need to do?

Employers must have an active eAccount on SIO’s portal with a username and password. If employers do not have an eAccount then one can be created electronically via the portal. The SIO has issued a manual to enable employers to update their bank account information (accessible here).

 

How will it work?

The employer will need to submit an application for payment of salaries of their Bahraini national employees. Salary payments will be made according to the insured data information held by the SIO until the end of February 2020. Once the application is received, the employer will then receive confirmation that salaries will be paid for the months of April, May and June (if required).

The government will pay salaries net of the social insurance contributions to the SIO. The salary payment will be paid on a monthly basis.

 

What does this mean for you?

The salary payments will be available for all employers in the private sector. The government has set a cap of BHD 4,000 per month on salary payments but has not attached any other conditions with payments, such as a prohibition on terminating employment of nationals.

The Employment & Incentives team regularly advises on all aspects of the employment relationship. If you require further information on the government scheme to pay salaries for Bahrainis or on employment matters relating to the COVID-19 pandemic.

 

Key Contact:

Zahir Qayum
Senior Counsel, Employment & Incentives
z.qayum@tamimi.com