EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Bahrain, click here
Country Introduction – Bahrain
Capital – Manama City
Currency – Bahraini Dinar
GDP – $44.17 Billion USD (2022)
People/Nationality- Bahraini
Language – Arabic
Major Religions – Islam and Christianity
Population – estimated 1,823,523 Million as of July 2022
Bahrain is an archipelago in the Middle Easta with thirty-three islands. It is located off the coast of Saudi Arabia and Qatar. Bahrain has a strategic location in the Persian Gulf, through which much of the Western world’s petroleum must transit to reach the open ocean. It is renowned for its verdant groves of date palms and gorgeous pearls; since ancient times it has been an entrepôt for trade and a source of natural resources for the surrounding area.
Bahrain represents an attractive avenue to explore. Over USD32 billion dollars have been invested in infrastructure, property and regulatory initiatives, which are in advanced stages of progress. Additionally, certain target sectors are prioritized to drive further foreign investment. Prime opportunities exist in the financial services, manufacturing, logistics, tourism, real estate, healthcare, education and technology. An added benefit to businesses is the fact that there are no restrictions on capital repatriation, currency exchange or transfer of dividends.
Contract of Employment
Unlike some other GCC (Gulf Cooperation Council) countries, Bahrain does not require the signing of a government contract. However, the contract entered between the employer and the employee must be registered with the Labour Market Regulatory Authority (LMRA) to obtain the employee’s work permit and residence visa. Under the Labour Law, the contract should be in Arabic, but in practice, where contracts are drafted in another language, an Arabic-translated version may be attached to fulfill this requirement. Any contractual changes should be notified to the LMRA and amended on the filed employment contract copy.
Probation Period
Generally, a duration of 3 months is allowed, although this may be increased up to a maximum of 6 months due to the unique requirements of certain occupations.
Termination
An employee may be terminated without notice or compensation in certain situations, including where the employee has assumed a false identity, fraud, non-compliance with written instructions and does not attend the workplace without legitimate cause.
An employer is obliged to serve a termination notice should it wish to dismiss an employee. As per the Bahraini Labour Law, the notice period must not be less than 30 days. However, the employers are bound to follow a longer notice period if it is stated in the employee’s contract.
Working Hours
Usual work hours in Bahrain is 8 hours plus an hour break for 5-6 days a week, primarily depending on which industry an employee belongs.
Overtime
Overtime hours should not exceed 2 hours per day. The employee shall receive for each additional working hour a wage equivalent to his due wage plus at least 25 % for hours worked during the day, and at least 50% for hours worked during the night.
Annual Leave
Employees are generally entitled to 30 calendar days of annual paid leave after one year of service. During the first year of employment, the employee is entitled to take accrued vacation, which for all employees accrues at a rate of 2 1/2 days per month.
Sick leave
An employee is granted leave in case of sickness, provided they present a valid medical absence report from a certified doctor. The total amount of leave granted is 24 working days equivalent to two days per month.
Maternity Leave
The start of maternity leave should be no earlier than forty-five (45) days prior to the expected date of childbirth and you should have maternity leave of at least sixty (60) days after childbirth. Maternity leave is available to eligible Philippines-based employees regardless of nationality or marital status.
The maternity leave period is counted in calendar days, inclusive of Saturdays, Sundays, and holidays. This is in consonance with the rule that maternity leave should be availed of in a continuous and uninterrupted manner.
VAT / GST:
Bahrain’s standard VAT rate is 10%.
Income Tax
There are no taxes in Bahrain on income, sales, capital gains, or estates, with the exception, in limited circumstances, to businesses (local and foreign) that operate in the oil and gas sector or derive profits from the extraction or refinement of fossil fuels (defined as hydrocarbons) in Bahrain.
Employer/Employee Contributions
The current rate of contributions to the SIO is 19% for local employees (12% employer; 7% employee) and 4% for expatriate employees (3% employer; 1% employee). These contributions to the SIO are to be withheld by the employer and remitted to SIO monthly.
For companies operating a multi-country payroll, it is important to note that the concept of tax residence is not recognised in Bahrain. Social insurance and pensions are paid in Bahrain, administered by the SIO (Social Insurance Organization).
Public Holidays
There are 12 public holidays in Bahrain:
– New Year
– May Day/Labour Day
– Eid al Fitr
– June Solstice
– Arafat Day
– Eid al Adha
– Muharram
– Ashoora
– September Equinox
– The Prophet’s Birthday
– National Day
– December Solstice
Severance Pay
Entitlement of the separation pay in Bahrain is equivalent to one-month salary or at least one-month salary for every year of service, whichever is higher. A fraction of at least six months shall be considered as one whole year. The period of service is deemed to have lasted up to the time of closure of the company.
Employees terminated under probation are generally entitled to receive two days of wages for each month served, with a minimum of one month pay and a maximum of 12 months of pay, regardless of whether the termination was for cause.
Work and Residence Permits (Expatriates)
Work and Residence visas are duly processed through the Bahraini Labour Market Regulatory Authority (LMRA), they issue all visas before expats arrive in the country. As the necessary documentsare submitted, employees will also need to complete certain steps. In addition to providing a medical report, employees should show academic or professional qualifications for the position. Bahrain typically processes all work visa applications in around 15 business days, but delays could take up to four weeks.
After the employees get their work permit, they’re automatically entitled to live in Bahrain. All family members will need a family visa, but the visa does not apply to extended family members. When applying for a family visa, your employees will need to apostille their documents, including their birth certificate, marriage certificate, and educational degree certificate.
Other requirements are as follows:
– A completed visa application form.
– The employee’s passport.
– A passport-size photo.
– Copy of the contract with the employee’s name, birth date, and nationality.
– Health record from an authorised clinic.
The $100K Visa Shock: Why Global Hiring Just Replaced the H-1B
How to Set Up Payroll For Hpc And Ai Teams
Contracting Machine Learning Talent Abroad
Everything on Hiring Foreign Phds In German Tech Labs
Cross-Border Ip Protection In R&D Teams
How To Classify Freelancers In Tech Innovation
How Eor Helps Tech Firms Legally Hire In Germany
Dual Contract Structure For International Researchers
Data Protection Obligations For Remote Tech Staff
Germany Research Visa Vs Skilled Worker Visa
Everything on Nis2 Directive Compliance For Eu Tech Workers
Global Mobility For Deep Tech Startups In Germany
Payroll For EU Embedded Systems Developers
Relocation Support For Semiconductor Experts on EU
The Absolute Way to Hire Ai Engineers In Germany
How to Manage Benefits For German Tech Hires
Germany’S Blue Card Process For Engineers
Everything on Germany R&D Employment Compliance
Remote Hiring Of Cybersecurity Analysts In Eu
Visa Pathways For Quantum Computing Researchers
Onboarding Robotics Specialists Across EU Borders
Workforce Planning In Ai-Driven Logistics And Infrastructure
Visa Processing For High-Tech Infrastructure Staff
Managing Global Mobility In Sustainable City Projects
Cross-Border Team Management In Saudi Data Centers
Hiring Skilled Labor For Green Hydrogen Facilities
Digital Twin Technology Hiring Trends In Saudi Construction
Employer Obligations In Public-Private Energy Initiatives
Navigating Local Labor Laws For Solar Energy Teams
Talent Acquisition In The Saudi Mining Sector
Eor Solutions For Ai Engineers In Mega Projects
Regulatory Challenges In Hiring For Giga Construction Projects
Contractor Compliance In Smart City Developments
Classification Of Engineering Consultants In Vision 2030 Projects
How To Manage Workforce For Neom-Based Tech Projects
Eor For Multinational Mining Firms Operating In Saudi Arabia
Employer Of Record For Wind Energy Projects In The Gulf
Relocation Logistics For International Clean Energy Experts
Hiring Strategies For Large-Scale Construction Projects In Ksa
How To Onboard Digital Infrastructure Experts In Saudi Arabia
Payroll Setup For Renewable Energy Workers In Ksa
Strategic Relocation To Riyadh Or Doha: A Guide for Global Employers
Work Visa Processing In Qatar And Saudi Arabia
Qatar Nationalization Policy And Foreign Firms
Cost Of Setting Up A Business In Qatar: A Guide for Global Employers
Saudi Labor Court And Dispute Handling for Global Employers
Cross-Border Payroll For Ksa And Qatar Teams
End Of Service Benefits Saudi Arabia: A Guide for Global Employers
How To Manage Expat Benefits In Qatar for Global Employers
Expanding Into New Markets: Vendor Risks You Should Flag
A Guide to Cross-Border Equity Vesting for Tech Startups
Employer Branding for Multinational Teams: What Works Now
What Global C-Level Leaders Miss About Digital Nomad Visas
Succession Planning for Distributed Teams: A Practical Guide
Relocation Budgeting For Global Tech Firms
Latam Hiring Strategy: What Global Companies Should Know
Risk Of Permanent Establishment Explained
Managing Intellectual Property In Remote Work
Benefits Benchmarking Globally for Global Companies
How to Benchmark Compensation Across 100+ Countries in 2025
Checklist: Preparing HRIS for Fast International Scalability
Biometric Data in Global Payroll: Legal Boundaries Explained
8 Regulatory Updates Impacting Global HR in 2025
What are Hidden Costs of In-House Payroll?
Why Companies are Thinking Differently About Relocation
Is Your Global Mobility Program Outgrowing Spreadsheets?
Remote Work Visas: A Growing Trend in Global Mobility
Hiring in Europe Post-Brexit: What You Need to Know
Tips for Managing Multi-Time Zone Teams Successfully
Relocation Packages: What Top Talent Expects in 2025
Banking and Payroll Challenges in Saudi Arabia Markets
The Legal Risks of Misclassifying Global Workers
Why Scalability Should Drive Your Global HR Strategy
How EWS Streamlines Global Mobility for Tech Talent
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record