Guide to employment, payroll and benefits in

Bahrain

Rivermate offers complete payroll, benefits and compliance services for

Bahrain

01. Overview

Last updated: 

August 19, 2021

Currency
Bahraini Dinar
Capital
Manama
Ease of doing business
76
Language
Arabic
Population
1701575
GDP growth
3.88%

02. Grow your team in

Bahrain

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Bahrain

, particularly if you don't have established local relationships. You can hire employees in

Bahrain

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Bahrain is a nation in the Persian Gulf that is officially known as the Kingdom of Bahrain. Bahrain is an island nation made up of a tiny archipelago of 70 natural and artificial islands based on Bahrain Island, which makes up about 83 percent of the country's landmass. The country is sandwiched between the Qatari peninsula and Saudi Arabia's northwestern coast, with the 25-kilometer King Fahd Causeway connecting the two. Bahrain has a population of 1,501,635 people, 712,362 of whom are Bahrainis, according to the 2020 census. It is Asia's third-smallest nation, after the Maldives and Singapore, with an area of 760 square kilometers. Manama is the country's capital and largest city. The ancient Dilmun culture flourished in Bahrain. It has been known for its pearl fisheries since antiquity, and until the nineteenth century, they were considered the best in the world. During the Prophet Muhammad's lifetime, in 628 CE, Bahrain was one of the first places to convert to Islam. Following the conquest of Bahrain by Shah Abbas I of the Safavid dynasty under the Persian Empire, Bahrain was ruled by the Portuguese Empire from 1521 to 1602. Bahrain was captured from Nasr Al-Madhkur by the Bani Utbah clan in 1783, and it has been ruled by the Al Khalifa royal family since then, with Ahmed al Fateh as Bahrain's first hakim. Bahrain became a protectorate of the United Kingdom in the late 1800s, following successive treaties with the British. It proclaimed independence in 1971. Bahrain, which was formerly an emirate, became an Islamic constitutional monarchy in 2002. Protests sparked by the regional Arab Spring erupted in the country in 2011. Bahrain's ruling Al Khalifa royal family has been accused of abusing the human rights of activists, political opposition leaders, and the country's majority Shia Muslim population. Bahrain established the Persian Gulf's first post-oil economy, the product of decades of investment in the banking and tourism sectors; many of the world's largest financial institutions have a presence in Bahrain. As a result, it has a high Human Development Index and is classified as a high-income economy by the World Bank. Bahrain belongs to the UN, the Non-Aligned Movement, the Arab League, the Organization of Islamic Cooperation, and the Gulf Cooperation Council.

04. Public holidays

05. Types of leave

Paid time off

An employee with at least one year of service is entitled to 30 paid days of regular leave, divided into 2.5 days per month.

Public holidays

There are eight public days and a total of fourteen days of leave in Bahrain.

Sick days

Sick leave is granted to employees for a total of 55 days. The first 15 days are paid in full, the 16th to 35th days are paid in half, and the 36th to 55th days are unpaid.

Maternity leave

Employees who are expecting a child are entitled to 75 days of maternity leave. The first 60 days was billed in full, with the final 15 days remaining unpaid.

Paternity leave

When an infant is born, fathers are entitled to one day of paid leave.

Parental leave

In Bahrain, only mothers are entitled for maternity leave.

Other leave

06. Employment termination

Termination process

Employers must have reasonable grounds for terminating an employee and offer a notice period.

Notice period

A contract can be terminated by either party by notifying the other party at least 30 days prior to the termination date. During the notice period, the labor contract remains in existence, and all contractual obligations must be met by the contract's parties. A payment in lieu of notice must be made in the absence of notice.

Severance pay

Severance pay is calculated based on the length of service. If the employee has worked for the company for three years, they are entitled to a severance payment equal to 15 days' salary for each year worked. If the employee has worked for the company for more than three years, they will receive the same severance pay as stated above for the first three years plus an additional 30 days' salary for each year thereafter.

Probation period

The probation period may last up to 3 months.

07. Working hours

General

The average workweek is 40 to 48 hours long, with eight hours of labor every day. During Ramadan, Muslim employees work six hours every day. The week runs from Sunday through Thursday.

Overtime

Workers are not allowed to stay at work for more than 11 hours every day, including working hours and rest periods.


Employees are paid their regular salary plus at least 25% for each additional working hour worked during the day, and at least 50% for hours worked at night.

08. Minimum wage

General

Private businesses are not required by law to pay a minimum wage. Those employed in the public sector must earn a minimum of 300 BHD (796 USD) per month. The median monthly salary is 1,534 BHD (4069 USD).


Employees receive a holiday bonus equal to 50% of their base monthly salary during the holiday season and a December bonus equal to 50% of base salary after one year of service.

09. Employee benefits

General

Bahrain's healthcare system is a mix of state and private providers. Bahraini citizens have access to free or highly subsidized medical care. Foreign nationals have access to the same facilities and physicians, but must pay for treatment, therefore it is highly recommended that they get health insurance. Supplemental health insurance benefits are not often provided by employers, although they may be negotiated in certain circumstances.

Allowances for housing, transportation, and utilities are prevalent in Bahrain. We usually suggest discussing total pay with an employee in Bahrain that includes such allowances; otherwise, an employer will be negotiating numerous components when total compensation is ultimately what counts to both sides.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Bahrain

to hire a team takes time, money, and effort. The labor law in

Bahrain

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Bahrain

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Bahrain

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Bahrain

via our Employer of Record / PEO solution.

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