Talent Wiki - Bahrain
Your quick guide on talent and labor compliance norms in Bahrain
Capital
Manama
Currency
Bahraini Dinar
Languages
Arabic, English
Payroll Frequency
Monthly
GDP per Capita
$28,691
Employer Tax
12%
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
Local Universities
The top local universities in Bahrain are as follows:
University Of Bahrain
RANKING
Local: 1
World: 3117
Arabian Gulf University
RANKING
Local: 2
World: 7,082
Ahila University
RANKING
Local: 3
World: 7,371
Bahrain Institute for Banking and Finance
RANKING
Local: 4
World: 8,020
University of Technology Bahrain
RANKING
Local: 5
World: 8,391
Salary Data
Some common jobs in Bahrain with average annual salaries are mentioned below:
| Job Title | Average Yearly Salary (BHD) | Average Yearly Salary (USD) |
| Chief Executive Officer | 2313 BHD | 6134 USD |
| Country Manager | 1639 BHD | 4347 USD |
| Managing Director | 1605 BHD | 4257 USD |
| IT Director | 1574 BHD | 4157 USD |
| Pilot | 1375 BHD | 3647 USD |
| Financial Manager | 1328 BHD | 3522 USD |
| IT Project Manager | 1312 BHD | 3480 USD |
Talent Sourcing Tips
Top Local Job Boards:
Indeed, Google for Jobs, Bayt
Number of LinkedIn users:
478,100
Top Recruitment Agencies:
Clarendon Parker International, Aseel Manpower Agency, Emplinks, Fortune Recruitment
Employing in Bahrain
Below listed are the key points an employer must keep in mind while seeking employees 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:
-
- Employers’ name, company address, and trade registration number.
- Employees’ names, birth dates, nationality, occupation, qualifications, residential addresses, and personal identification documents.
- Nature, type, and duration of job contract.
- Wage, mode of payment, and benefits.
Probation:
The probation period for Bharanian employees is up to one month.
Public and Provincial Holidays 2023
| Date | Name | Type |
| 1 Jan | New Year | National holiday |
| 22 Apr | Eid al-Fitr (Tentative Date) | National holiday |
| 23 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 24 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 1 May | May Day | National holiday |
| 28 Jun | Arafat Day (Tentative Date) | Government holiday |
| 29 Jun | Eid al-Adha (Tentative Date) | National holiday |
| 30 Jun | Eid al-Adha Holiday (Tentative Date) | National holiday |
| 1 Jul | Eid al-Adha Holiday (Tentative Date) | National holiday |
| 19 Jul | Muharram (Tentative Date) | National holiday |
| 28 Jul | Ashoora (Tentative Date) | National holiday |
| 29 Jul | Ashoora Holiday (Tentative Date) | National holiday |
| 27 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 |
Payroll
Payroll Cycle
The payroll cycle in Bahrain is Monthly.
Minimum Wage
No set minimum wage rate. 300 BHD is the rate set for public sector workers.
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.
Bonus
13th Month Pay
Not mandatory
Employee Benefits
- Annual Leave
- Maternity Leave
- Paternity Leave
Taxes
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%.
Offboarding & Termination
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.
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 |
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.
