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Middle East

Bahrain

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Employer of Record (EOR) in Bahrain

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Bahrain Introduction

Bahrain, officially known as the “Kingdom of Bahrain” is an island country located in the Persian Gulf. It comprises a small archipelago made up of 50 natural islands and 33 artificial islands, centered around Bahrain Island which makes up ~83% of the country's landmass. Bahrain has the fastest-growing economy in the Arab world and wants to encourage technological innovation within the country.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees in Bahrain receive 75 days of maternity leave — the first 60 days are paid while the last 15 days are unpaid. After giving birth, women in Bahrain are not allowed to work for at least 40 days after the birth of their child. Fathers to newborns receive 1 day of paid leave upon the birth of their child.

Sick Leave

Employees in Bahrain can receive 55 days of sick leave. The first 15 days are fully paid, for days 16-35 the employee receives 50% pay, and days 36-55 are unpaid.

Paid Leave

Employees receive 14 days of paid leave for public holidays. After at least one year of service with a company, employees are entitled to 30 days of annual leave. Before finishing one year at the company, employees can accrue 2.5 days of paid leave per month.

Employees can also take 3 days of paid leave for marriage, and Muslim employees are eligible to take 14 days paid leave for a pilgrimage to Mecca once in their career, providing they have worked for the same company for at least 5 years.

Wage Requirements and Working Hours

Bahrain does not have a minimum wage, so pay rates must be agreed upon with the employer through either collective bargaining or another means of negotiating a fair living wage.

The standard working hours in Bahrain are 8 hours per day and 40 hours per week. However, during Ramadan, Muslim workers may not work more than 6 hours per day or 36 hours per week. The work week in Bahrain goes from Sunday-Thursday with 2 days off on Friday and Saturday.

Employees who work overtime will receive 125% of their wage for each additional hour worked past 8 in one day, and at least 150% for hours worked during the night.

Termination Process

Process

Employers need to have sufficient grounds for termination and provide a notice period if wanting to terminate an employee contract.

Notice Period

Either party (employer or employee) can terminate the contract, as long as they give 30 days notice. The employer also has the option to give payment in lieu of notice.

Severance Pay

Employees who have fixed-term contracts are usually entitled to receive the full pay that they would have received for the whole contracted period. Employees with indefinite contracts who are terminated after 3 months are usually entitled to 2 days of pay for each month served at the company, with a minimum of 1 month and a maximum of 12 months of pay (regardless of whether the termination was of just cause).

Severance pay will depend on the employee's length of service:

  • 3 months-3 years: 15 days of salary per year worked
  • 4+ years: 30 days of salary per year worked

Additional Information

N/A

OVERVIEW
Language(s):
Arabic, English
Currency:
Bahraini Dinar (BHD)
Capital City:
Manama
Population:
1.8 Million
Cost of Living Rank:
40th
VAT (Valued Added Tax):
5%
Employer TaxES
12%+fee
(estimated)

★  12% - Social Security

★  BHD 22.50 - Annual Healthcare Fee

Simplified Global HR and Payroll.
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We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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How Remofirst employs in Bahrain

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Bahrain get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Bahrain are paid on time in Bahraini Dinar (BHD). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Bahrain, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.