Bahrain PEO & EOR
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DID YOU KNOW
- The Tree of Life can be found in Bahrain’s Arabian desert. On a hill in the middle of the Arabian Desert sits an ancient acacia that gets around 65,000 visitors a year. Planted in 1582, the natural wonder survives the odds; with no known water sources and very little rain, it’s the only tree growing in the barren environment.
- Bahrain is the third smallest country in Asia, with only 2 countries smaller – Singapore and the Maldives.
- “Dive Bahrain” is the world’s largest underwater theme park. A haven for scuba enthusiasts, divers can explore a sunken Boeing 747 covered in coral studs and rust.
Forget software,
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Bahrain PEO Services
A small, centrally located country with a high-income economy
Working in Bahrain
Financial Year Dates
1st January – 31st December
Minimum Wage
No mandatory minimum wage law
Standard working hours
The standard working week is typically between 40 and 48 hours. This is reduced to 6-hour working days during Ramadan for those who observe fasting.
Friday is the Muslim day of rest, therefore most employees will either take a Thursday or Saturday as their additional rest day.
Overtime
Overtime is a maximum of 2 hours per day. Paid at 1.25x for additional hours worked in the day, and 1.5x for overtime hours in the evening.
Holiday Allowance
Employees in Bahrain are entitled to 30 days of paid annual leave per year after completing one year of service. If the employee has worked for the company less than a year, then the holiday allowance will be for a proportion of their employment, calculated at 2.5 days for each month worked.
Muslim employees with a minimum 5 years’ service are entitled to 14 days’ paid leave for a pilgrimage to Mecca once during their tenure.
Sick Leave
After 3 months of consecutive service, an employee with a certified illness is entitled to annual paid sick leave:
- Up to 15 days fully paid
- 20 days on half pay
More than 20 days of sick leave without pay
Maternity & Paternity Leave
Female employees are entitled to 60 days full pay for maternity leave. Followed by an optional 15 days without pay.
Male employees are entitled to 1 day of full paid paternity leave.
Public Holiday
- New Years Day
- Eid al-Fitr
- Labour Day
- Eid al-Adha
- Islamic New Year
- Ashura
- Prophet Muhammads Birthday
- National Day Holiday
Social Contributions
Local employees – Employee’s contribution is currently 8% and set to remain at that rate for the foreseeable.
Employer’s social contributions are currently 16% and set to increase by 1% each year until it reaches 20% in 2028.
Expat employees – 1% employee and 3% employer contributions.
Income Tax
There is currently no income tax applied to personal income in Bahrain.
Health Care
Bahrain’s commitment to “Healthcare for All” has been a cornerstone of its national policy since the 1990s, successfully providing its citizens and residents with a spectrum of advanced, free, and subsidized healthcare services.
Visas
All employees except for Bahrain and Gulf Cooperation Council nations require a residence visa and work permit permitting them to legally work in Bahrain. Visas and work permits are sponsored by employers who have an entity registered in Bahrain.
For employees only required to work for a short period of time, alternative permits and visas may be applied, including 72-hr and 7-day business visas.
End of Service payments
Employers are required to remit end-of-service entitlement contributions for all eligible non-Bahrani employees to the Social Insurance Organisation (SIO) on a monthly basis. Upon termination or resignation, employees will apply to the SIO for their end of service gratuity payment. The gratuity calculation is 4.2% of an employee’s salary for the first three years of employment, increasing to 8.4% for additional years. Employees must send contributions to the system within the first 15 days of the month, or may face a fine.
Cultural Information
- Bahrainis are a coffee nation, adding spices, rosewater and sugar to their coffee to enjoy whilst socialising.
- The island’s only land connection is a 25-kilometer bridge named The King Fahd Causeway, that links Bahrain to Saudi-Arabia.
- Traditional clothing in Bahrain is an integral part of the country’s history and culture. Men traditionally wear a loose, full length, long-sleeved gown called a Thobe. The thobe is paired with a traditional Bahraini headdress, which is made up of three parts: ghutra, agal, and keffiyah. The ghutra is the main garment, a square scarf that is normally white or red-and-white checked. It is folded in a triangle over a skull cap called a keffiyah and usually held in place by a thick black cord called an agal. Women wear a long, loose-fitting gown called an abaya. Traditionally black and plain but can be personalised with embellishments and patterns. Abayas are paired with a hijab, typically made from black cloth and covering women’s hair.