Employer Tax Contributions

Tax Type	Rate	Base
Social Insurance (Bahraini)	17%	Gross monthly salary (capped at BHD 4,000)
Social Insurance (Expatriate)	3%	Gross monthly salary (covers work injury insurance)
Unemployment Insurance (Employer)	1%	Insured's wages
End-of-Service Benefits (Non-Bahraini)	4.2% (first 3 years); 8.4% (subsequent years)	Employee's monthly wage

Filing & Compliance

• Social insurance contributions must be remitted to the Social Insurance Organization (SIO) monthly.
• Monthly contributions for end-of-service benefits for non-Bahraini employees must be paid to the SIO by the 15th of each month.
• Employers must pay salaries electronically through banks and financial institutions licensed by the Central Bank of Bahrain via the Wage Protection System (WPS).

Income Tax Brackets

Income Range	Tax Rate
All Income	0%

Employee Contributions

Deduction Type	Rate	Cap
Social Insurance (Bahraini)	8%	BHD 4,000/month
Social Insurance (Expatriate)	1%	BHD 4,000/month
End-of-service benefits (Non-Bahraini, SIO)	4.2% (first 3 years); 8.4% (thereafter)	No specific cap mentioned

Personal Allowances

• Bahrain does not impose personal income tax on salaries or wages.
• No income tax-related deductions or allowances can be claimed against employment income.
• The primary mandatory deduction is social security contributions.