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We , Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain,
Having reviewed the Constitution; and The Labour Law for the Private Sector promulgated by Legislative Decree Law No. (23) of 1976 as amended, particularly Article (111) thereof; and
The Social Insurance Law, promulgated by Legislative Decree Law No. (24) of 1976 as amended;
The Shura Council and Council of Representatives ratified the following Law and we have approved and promulgated it:
ARTICLE ONE
The definition of wage stated in Article (4) of the Social Insurance Law promulgated by Legislative Decree No. 24 of 1976 shall be substituted with the following definition:
Wage: is all that is paid in cash regularly or periodically to the insured in consideration of his work whether payable monthly, or weekly, or daily, or hourly, or by piecework, or the amount of production but not to exceed the maximum wage prescribed in paragraph one of Article (17).
ARTICLE TWO
The provisions of Articles (17), first and fifth paragraphs and (21) and (40 of the Social Insurance Law promulgated by Legislative Decree No. 24 of 1976 shall be substituted with the following texts:
(Paragraph One)
The contribution prescribed in this Law shall be assessed on the basis of the total wages received by the insured per month. The maximum monthly wage subject to contribution shall be four thousand Bahraini Dinar (BD.4,000).
(Paragraph Five)
In all cases, the wages shall include the other components of wages paid in cash to the insured workers periodically or regularly as the Minister of Labour shall so determine by an order.
Article (21)
A worker may not be insured except with one employer.
Article (40)
In the calculation of the average monthly wage referred to in the preceding Article, it must not exceed 150% (one hundred fifty per cent) of the wage of the insured, which is subject to contribution, at the beginning of the last five years of his period of subscription in the social insurance or if the period of his subscription was less than this limit. If the difference exceeds this limit, the increase may not be considered part of the average wage on the basis of which the pensions is to be calculated.
ARTICLE THREE
The old age, disability, death and compensations due for the period preceding the date in which this Law has come into force, during which the insured has paid contributions for wages that exceed the maximum monthly wage which is subject to subscription as provided in the first paragraph of Article (17) and stated under Article One of this Law, shall be calculated independently from the succeeding period. The final pension or compensation shall be determined according to the total of the two pensions or compensations resulting from the calculation of each period individually, as the case maybe.
The death grant prescribed in Article (89) of this Law shall be calculated based on the wage which is subject to contribution at the time of death.
All pensions and compensations due for the branch of employment injuries and occupational diseases shall be calculated based on the wage of the insured which is subject to contribution at the time of injury.
ARTICLE FOUR
Employers governed by the provisions of this Law shall undertake to pay leaving indemnity to the insured workers who are governed by the branch of old age, disability and death in accordance with the provisions of Labour Law for Private Sector No. (23) of 1976 for the period that falls after the date on which this Law shall come into force in respect of the wages that exceed the maximum limit of wage prescribed in first paragraph of Article (17) of this Law.
ARTICLE FIVE
If a worker, during the time this Law comes into force, was working with more than one employer, he shall continue to be subject to social insurance with the employer who pays higher wage and the insurance with other employers shall be ceased, unless the insured request GOSI by a registered mail to continue insurance with another employer during six months from the date of issuance of this Law.
In this case, the pension or compensation for the branch of old age, disability and death for the period preceding the date in which this Law has come into force, shall be assessed independently from the succeeding period. The final pension or compensation shall be determined according to the total of the two pensions or compensations resulting from the calculation of each period separately, as the case maybe, unless calculation of pension or compensation for the total of the two periods without interruption is in favour of the insured.
ARTICLE SIX
The Minister of Labour shall issue orders for implementing the provisions of this Law.
ARTICLE SEVEN
The Minister of Labour shall implement this Law which shall come into force on the day following the date of its publishing in the Official Gazette.
King of the Kingdom of Bahrain
Hamad bin Isa Al Khalifa
Issued in Riffa Palace
On 5 Rajab 1427 Hijra
Corresponding to: 30 July 2006 |