In most Gulf states the pension system covers nationals only, so no retirement contribution is deducted from an expatriate's salary, and the expatriate receives an end-of-service award instead. Other contributions do apply, such as occupational hazard contributions paid by the employer in Saudi Arabia and Bahrain, and unemployment insurance in Bahrain and the UAE.
Step by step
- 1
Saudi Arabia
Nothing is deducted from the expatriate, and the employer pays 2% for occupational hazards.
- 2
UAE
Expatriates are not covered by the pension system and pay the unemployment insurance premium: AED 5 or 10 a month depending on basic salary.
- 3
Bahrain
1% unemployment insurance on the expatriate and 3% work injury insurance on the employer, and the employer pays the end-of-service contribution to the Social Insurance Organization.
- 4
Qatar and Kuwait
No social insurance contribution applies to expatriates, who are entitled to the end-of-service award.
- 5
Oman
The savings scheme at the Social Protection Fund replaces the expatriate award from July 2027 according to the announced schedule.
Leaving out employer contributions for expatriates, such as occupational hazards, makes an employee's cost in the budget lower than it really is.
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