In April 1979 Ministerial Order No. 12/1979 established the Specific Councils for the Vocational Training of Bahraini workers in the private sector.The Specific Council for Vocational Training in the Banking Sector is a quasi-Governmental body chaired by His Excellency Shk. Ahmed Bin Mohammed Al Khalifa, Governor of the Bahrain Monetary Agency, which consists of representatives from the Ministries of Labour and Education, and other nominated members.

Ministerial Order No. 13/1979 introduced a compulsory levy for all industrial sectors of 1% of local payroll and 3% of expatriate payroll for institutions with 50 employees or more. This figure was subsequently reduced in January 1982 to 10 employees. However, as a result of studies undertaken by the financial community, the High Council for Vocational Training was approached through the Specific Council – Banking Sector, with a proposal to establish their own training centre, which will be entirely funded by a mandatory 1% levy on all financial institutions, regardless of the number of employees.

Such a levy would replace the original Ministerial Order No. 13/1979. The Higher Council for Vocational Training agreed. The Specific Council for Vocational Training (Banking Sector) resolved that with effect from 01.01.95 money brokers and moneychangers shall also be included within the levypaying scheme, so that equality of training and career opportunities are afforded to all financial institutions licensed by the Bahrain Monetary Agency.

The levy for all financial institutions (banking, finance and insurance) is therefore defined as 1% of total GOSI payroll, i.e. all payments and benefits received by staff, both local and expatriate, other than the cost of housing or housing allowances, education allowances and pension payments. Payments under the scheme become due as soon as a financial institution commence operations.

As you can see from the above the Financial Sectors are paying lower levy contribution than other sectors.

All payments due under the scheme should be made in favour of the Bahrain Institute of Banking and Finance, and sent to the Bahrain Monetary Agency, Banking Department, for credit A/c. No 4692, together with a letter stating the period covered by payment, or payments may be sent directly to BIBF. The accompanying letter should also be copied to the Deputy Director, BIBF.

For more information please contact:

Cristine Al Arayedh on
Telephone: +973 17 815532
Fax: +973 1791 6408
Email: c_alarayedh@bibf.com