AN ‘end-of-service indemnity’ payment for expatriate employees in the private sector will be dispensed directly through the Social Insurance Organisation (SIO) starting next year.
It follows directives by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, during a Cabinet session two weeks ago to start immediate implementation according to proper drawn-up system.
“The deduction percentage will be the same as the indemnity which the employer is required to pay to the employee at the end of their service” SIO executive director of subscriber services Abdulla Al Mahmood said at a workshop yesterday on the relationship between the employer and social insurance.
The workshop revolved around services offered by the SIO, for which Bahraini employees must be registered through the Labour Ministry, and expats through the Labour Market Regulatory Authority.
Mr Al Mahmood emphasised the importance for the employer to update the insured employees’ data in January of each year. This includes updating the job titles during the year as well as organisation data.
The employer is also required to report any workplace injuries to the SIO within 24 hours.
The workshop took place at the Bahrain Chamber Majlis, and featured Mr Al Mahmood and Supreme Civil Court Judge Mohamed Al Desouqi.
Mr Al Mahmood further explained that the system is similar to the ‘end of service indemnity’ in the labour law in private sector. In return, the employer is required to have a monthly subscription which is calculated based upon the basic payment and social allowances, if any.
It will apply to the 609,028 non-Bahraini employees in private sector, who are included in the work-injuries insurance.
Starting from January next year, the employer’s contribution percentage in insurance against aging, death and work injuries will increase gradually from 15 to 20 per cent by 2028.
The workshop also discussed the penalties related to employers who do not follow the law, provide inaccurate data or not pay their dues to the SIO.
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