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Find out moreWelcome to this edition of Law Update, where we focus on the ever-evolving landscape of financial services regulation across the region. As the financial markets in the region continue to grow and diversify, this issue provides timely insights into the key regulatory developments shaping banking, investment, insolvency, and emerging technologies.
2025 is set to be a game-changer for the MENA region, with legal and regulatory shifts from 2024 continuing to reshape its economic landscape. Saudi Arabia, the UAE, Egypt, Iraq, Qatar, and Bahrain are all implementing groundbreaking reforms in sustainable financing, investment laws, labor regulations, and dispute resolution. As the region positions itself for deeper global integration, businesses must adapt to a rapidly evolving legal environment.
Our Eyes on 2025 publication provides essential insights and practical guidance on the key legal updates shaping the year ahead—equipping you with the knowledge to stay ahead in this dynamic market.
Following an announcement last month of an unprecedented BHD 4.3 bn stimulus package of policy measures to support citizens, residents and businesses in the Kingdom, the government has now launched an eService to facilitate salary payments.
The eService platform has been launched on the Social Insurance Organisation (SIO) portal and is now open for employers to register their IBANs to enable the payment of salaries of Bahrainis in the private sector from the unemployment fund for a period of 3 months commencing this month.
Employers must have an active eAccount on SIO’s portal with a username and password. If employers do not have an eAccount then one can be created electronically via the portal. The SIO has issued a manual to enable employers to update their bank account information (accessible here).
The employer will need to submit an application for payment of salaries of their Bahraini national employees. Salary payments will be made according to the insured data information held by the SIO until the end of February 2020. Once the application is received, the employer will then receive confirmation that salaries will be paid for the months of April, May and June (if required).
The government will pay salaries net of the social insurance contributions to the SIO. The salary payment will be paid on a monthly basis.
The salary payments will be available for all employers in the private sector. The government has set a cap of BHD 4,000 per month on salary payments but has not attached any other conditions with payments, such as a prohibition on terminating employment of nationals.
The Employment & Incentives team regularly advises on all aspects of the employment relationship. If you require further information on the government scheme to pay salaries for Bahrainis or on employment matters relating to the COVID-19 pandemic.
Zahir Qayum
Senior Counsel, Employment & Incentives
z.qayum@tamimi.com
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