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Expand your global workforce in Bahrain

Your guide to the employment landscape, working customs and local labor laws in Bahrain.

Capital

Manama

Currency

Bahraini Dinar

Languages

Arabic, English

GDP per Capita

$29,064.15

Employer Tax

12%

Payroll Frequency

Monthly

Talent overview

Bahrain comprises a group of 33 Islands in the Persian Gulf. It boasts a strategic location in the Persian Gulf through which most of the Western Petroleum must transit to reach open waters. Oil and Gas, Aluminum, Banking, Insurance, and Tourism are the dominant industries in Bahrain.

Major economic hubs:

Manama, Riffa, Muharraqq, Hamad Town, A’ali

Skills in demand:

Surgeon/Doctor, Lawyer, Professor, Pilot, Bank Manager, Chief Financial Officer, Chief Executive Officer, Marketing Director

Top local universities in Bahrain

Uni1 Bahrain

University Of Bahrain

RANKING

Local: 1

World: 3,288

Uni2 Bahrain

Arabian Gulf University

RANKING

Local: 2

World: 6,168

Bahrain Uni3

Ahila University

RANKING

Local: 3

World: 7,530

Bahrain Uni4

Bahrain Institute for Banking and Finance

RANKING

Local: 4

World: 7,957

Bahrain Uni5

University of Technology Bahrain

RANKING

Local: 5

World: 8,819

Top Local Job Boards:

Indeed, Google for Jobs, Bayt

Number of LinkedIn users:

522,000

Top Recruitment Agencies:

Clarendon Parker International, Aseel Manpower Agency, Emplinks, Fortune Recruitment

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

Some common jobs in Bahrain with average annual salaries are mentioned below:

Job Title Average Monthly Salary (BHD) Average Monthly Salary (USD)
Chief Executive Officer 3,420 9,075
Country Manager 2,520 6,687
Managing Director 2,840 7,536
IT Director 2,500 6,633
Pilot 2,640 7,005
Financial Manager 2,910 7,721
IT Project Manager 2,280 6,050

Employ in Bahrain

Employing in Bahrain

Below listed are the key points an employer must keep in mind while seeking employees in Bahrain (see How to Hire in Bahrain)

Employee Contract

The employment contract must be written in Arabic and must have two copies – One for the employer and one for the employee. A translated copy must be attached if the contract is written in another language.

The contract must contain the following details:

    1. Employers’ name, company address, and trade registration number.
    2. Employees’ names, birth dates, nationality, occupation, qualifications, residential addresses, and personal identification documents.
    3. Nature, type, and duration of job contract.
    4. Wage, mode of payment, and benefits.

Probation:

The probation period for Bharanian employees is up to one month.

Public and Provincial Holidays

Date Name Type
1 Jan New Year National holiday
10 Apr Eid al-Fitr (Tentative Date) National holiday
11 Apr Eid al-Fitr Holiday (Tentative Date) National holiday
12 Apr Eid al-Fitr Holiday (Tentative Date) National holiday
1 May May Day National holiday
16 Jun Arafat Day (Tentative Date) Government holiday
17 Jun Eid al-Adha (Tentative Date) National holiday
18 Jun Eid al-Adha Holiday (Tentative Date) National holiday
19 Jun Eid al-Adha Holiday (Tentative Date) National holiday
8 Jul Muharram (Tentative Date) National holiday
17 Jul Ashoora (Tentative Date) National holiday
18 Jul Ashoora Holiday (Tentative Date) National holiday
16 Sep The Prophet’s Birthday (Tentative Date) National holiday
16 Dec National Day National holiday
17 Dec National Day (second day) National holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 30 days Yes
Sick Leave 15 days with full pay, next 20 days with half pay and next 20 days without pay Yes
Maternity Leave 60 days Yes

Leave Compliance

Payroll in Bahrain

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Payroll cycle

The payroll cycle in Bahrain is Monthly. See More on Bahrain Payroll

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Minimum wage

The General Minimum wage for public sectors is 300 BHD per month.

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Overtime pay

The employees are paid with 125% during daytime; 150% during nighttime for the overtime work they have done. The standard working hour is 40hrs per week and 8hrs a day.

How taxes work

Employer Payroll Tax

Type of Contributions Contributions
Social Security 12% (3% for expatriate employees)

Employee Payroll Tax

Type of Contributions Contributions
Social Security 7% (1% for expatriate employees)

Employee Income Tax

There is no personal income tax in Bahrain.

VAT

The standard rate of VAT in Bahrain is 10%.

Bonus

13th Month Pay

Not mandatory

Employee Benefits

  • Annual Leave
  • Maternity Leave
  • Paternity Leave

Employee offboarding

Employment in Bahrain can be terminated both by the employee and the employer. The employer can terminate the employment on substantial grounds. If the employment is terminated without any grounds, the employer must pay a severance to the employee. See employment laws in Bahrain

The notice period in Bahrain for permanent employees and employees on probation is one day.

The severance pay in Bahrain as follows:

Years of service Severance Pay
First 3 years 15 days salary for every year
4th year onwards 30 days salary for each year
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Visa and
immigration

Non-Bahraini employees must obtain a residency visa and a work visa (known as a labor card) to be employed in Bahrain.
The Labor Market Regulatory Authority (LMRA) will issue the Work Visa before an employee arrives in Bahrain and the Labor Card will be issued upon arrival. The sponsoring organization must also provide proof of work contracts and proof that the said position requires foreign expertise.

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