Executive summary

On 16 February 2026, Bahrain's Shura Council passed amendments to the Gulf Cooperation Council (GCC) unified insurance system to activate the unemployment insurance branch of the unified insurance system for Bahrainis working in other GCC countries, according to press reports.

The amendments introduce a mandatory unemployment insurance deduction of 1% of the insured wage of Bahraini employees working in any GCC member state, with a matching 1% employer contribution, in accordance with Article 6 of Decree-Law No. 78 of 2006 pertaining to unemployment insurance.

The change is intended to strengthen social protection for Bahrainis working across the Gulf region and help ensure consistent coverage regardless of where they are employed. Further implementing details, including contribution remittance procedures and coordination with other GCC social security authorities, are anticipated to follow the issuance of the final law.

Detailed discussion

Background

The GCC unified insurance system, in place since 2006, extends social insurance protection to GCC citizens working in any member state. Bahrainis working abroad are covered under Bahrain's social insurance system, while GCC nationals working in Bahrain remain insured through their home-state schemes.

The newly introduced amendments expand this framework by adding unemployment insurance coverage, which was not included in the original system. The amendments reflect a broader GCC policy agenda to deepen coordination between authorities of member states.

The measure aims to provide stability and temporary financial protection in cases of job loss, in line with Bahrain's national unemployment insurance regime.

Highlights of the amendments

The key provisions of the approved amendments include:

• Activation of the unemployment insurance branch for Bahrainis working in other GCC states, aligning their entitlements with Bahrainis working in Bahrain
• Mandatory contributions of 1% from employees and 1% from employers, payable on the insured employee's wage and remitted to Bahrain's Unemployment Insurance Account
• Coordination among GCC states on detailed unemployment insurance rules

The Social Insurance Organization (SIO) has stated that the operational framework will become clearer once the law is formally issued, including how contributions will be processed across borders.

Implications

The amendments are expected to enhance social protection for Bahrainis working across the GCC. GCC-based employers can expect new financial obligations, including potential additional amounts for delayed or noncompliant contribution payments, as outlined by the SIO.

All GCC employers with Bahraini nationals in their workforce should review internal payroll systems and compliance processes to accommodate the new 1% employee and 1% employer unemployment insurance contributions. Employers should anticipate a strengthened compliance framework coordinated across GCC states and prepare for adjustments once detailed rules and implementation timelines are released.