Expatriates in Bahrain have been urged to check with their employers and ensure they are registered with the Social Insurance Organisation (SIO) in order for them to be able to collect their end-of-service indemnity (gratuity).
This was the recommendation during an online workshop, titled ‘End of Service Benefit System for Non-Bahrainis Working in the Private Sector’, held yesterday.
The session, aimed at educating expat workers on their rights, was part of a newly-launched programme that aims to raise awareness on SIO services and their benefits.
According to SIO statistics for the second quarter of this year, the total number of expats working in the private and public sectors in the kingdom reached 470,265, while the number of Bahrainis was 156,405.
“All non-Bahrainis working in the private sector, except for GCC citizens who are subject to the Insurance Extension Protection Law, are covered by the End of Service Benefit System,” said a SIO representation during the workshop.
“The employers are obligated to pay the monthly contributions in full. They are also obligated to update wages in accordance with different wage elements such as basic salary, social allowance, housing allowance, transportation, bonuses or commissions.
“Check with your employer and make sure that you are registered with SIO in order for you to be eligible to collect your indemnity.”
Based on the Bahraini labour law, indemnity is a legal right for all workers whose employment is sponsored by a company or household.
It is paid to workers at the end of their service in addition to their last wage.
For domestic workers and expats in the private sector, if their employment was for three years or less, the indemnity is equal to half a month’s wage.
For those whose employment was longer than three years, it is half a month’s wage for the first three years, and then a full month’s salary for the following years.
As of March 2024, employers in the private sector must pay monthly contributions to the SIO via bank transfers for end-of-service indemnity.
The SIO will then directly pay workers their indemnity after their resignation or end of their contract.
Employers who do not pay their contributions will have to pay an extra 20 per cent penalty on the unpaid amount.
Sanctions may also be imposed on employers who submit fake information on workers’ wages in an attempt to pay smaller contributions.
During yesterday’s workshop, the SIO explained how expats can apply for their indemnity after they leave their employers. “Go to the SIO website (sio.gov.bh) and login using your e-Key.
“You will need an IBAN and it should show you the one from your current bank. If there is no IBAN shown or no bank registered with your account, then follow the instructions and add one, after which it will be sent to SIO for approval.
“Keep in mind that only Bahraini banks will be allowed.
“Once that is all sorted out, go to ‘Benefit Application’, search for ‘Benefit Lump Sum’ and then select ‘End of Service’.
“Follow the instructions and wait for the approval, which could take around one week, providing there are no delays.”
The sessions will continue next Thursday with discussions on ‘Workers’ Rights in the Public Sector’ (in Arabic), while the October 30 workshop will feature talks on ‘Workers’ Rights in Private Sector’ (also in Arabic).
People can participate in the workshop by using the link either on Instagram @siobahrain, or on the official SIO website.
For more information on indemnities or registration processes, expats can contact the SIO either by calling 17000707, or visit one of the branches or kiosks around the country.
nader@gdnmedia.bh