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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

Map - Bahrain

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 Source - Bahrain

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:

    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 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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration