Bahrain
[Updated April 24, 2024] Employees in Bahrain care most about their medical insurance, as healthcare in the region has become very expensive. When asked to rank three other common benefits in order of importance, the average Bahraini employee will respond with death benefits, disability, and Retirement.
Country Insight
Bahrain’s Ministry of Health has stated that the mandatory health insurance scheme will be implemented among foreigners in 2023 and for citizens in 2024.
The Ministry of Health also confirmed that the Health Insurance Fund will provide citizens with two packages – the mandatory health package and the optional health package. Under the health insurance law, the government pays the contributions on behalf of citizens to cover the benefits in the mandatory health package for citizens, which include access to preventive, curative, and rehabilitative services and medical examinations.
Regarding the role of insurance companies in the health insurance project, the ministry stated that the insurance companies will provide compulsory and optional health packages to ex-pat residents, while the Health Insurance Fund will provide compulsory and optional health packages to citizens.
Consultations are underway with concerned authorities to determine the mandatory health package for foreign residents.
Trends
There is a trend towards offering an all-inclusive salary incorporating all expenses such as medical, housing, travel, and education. This would replace a separate salary and benefits.
Average Cost for Employer-Sponsored Benefits
For Bahraini employees, the employer pays 8% (public sector 1% paid by the employee, and in some organizations in the private sector it is 7% by the employer and 1% by the employee) of the basic monthly salary towards social insurance. The average monthly salary is 1,352 Dinars (BHD 859/-).
Advice
As for other countries in the GCC (Gulf Cooperation Council), the majority of the workforce in Bahrain are foreigners. It is therefore advisable to focus on expatriate regulations.
Surprising Fact
Bahrain offers extensive welfare to its nationals without any taxation. (there is a value-added tax, but there is no income tax) This includes medical care, sickness and maternity cover, childcare, pensions, and unemployment benefits. Foreign workers are excluded. It’s also important to understand that a minimum wage was introduced for Bahrainis in the private sector, subsidized by the government.
This information about employee benefits in Bahrain is provided by Nexus, Asinta’s employee benefits consulting Partner in Bahrain.