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Social Insurance Organization (SIO) in Bahrain

The Social Insurance Organization (SIO) plays a crucial role in Bahrain, oversees the administration of social insurance benefits and pension schemes for employees. Employers using Zoho Payroll need to familiarize themselves with SIO to ensure compliance and provide employees in Bahrain with essential benefits.

SIO is dedicated to managing social insurance systems that safeguard employees’ financial well-being, particularly during retirement and times of need. As an employer, here are key points to consider:

Mandatory Contributions

Both employers and employees are required to make monthly contributions to SIO. These contributions are calculated based on the employee’s salary through Zoho Payroll, ensuring accuracy and adherence to regulatory standards.

Authority Employees’ Contribution Employer’s Contribution Can be renewed at the start of the fiscal year? Applicable for Citizens of
Social Insurance Organization (SIO) 6.00% 9.00% Yes Bahrain

Benefit Entitlements

SIO provides a range of benefits, including retirement pensions, disability benefits, and social security coverage. These benefits serve as a safety net for employees, offering financial support in various life situations.

Compliance and Reporting

Employers must stay compliant with SIO regulations. This involves reporting the maximum contributory wage for employees and updating any changes in employment status. 

Configuring SIO in Zoho Payroll

Pre-requisite: Ensure that you have created or imported employees who are Bahraini nationals.

  • Click on Settings in the left sidebar of Zoho Payroll.
  • Select Social Security.
  • Click Edit in the Social Insurance Organization (SIO) card.
Social Security
  • Enter the Maximum Contributory Wage. This is the salary limit to which both employer and employee contribution rates apply.
  • Choose the option to Postpone the updated SIO contributions due to Salary revisions to the next calendar year if you wish to delay deductions resulting from salary revisions until the following calendar year.
  • Click Save.
Social Security

Pro-tip:

View Salary Components Used for SIO Contributions

Understanding how the salary contributes to SIO is vital. Click the View Salary Components Used for SIO Contribution option to view the specific salary components is used to calculate the maximum contributory wage, providing transparency in the allocation of your salary towards SIO contributions.


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