Bahrain – Employer of Record

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Hiring in Bahrain

It is legally essential to draft a solid employment contract that specifies the conditions of the employee’s pay, incentives, and severance obligations. Also, it must be in the local language in Bahrain. The contract must be in duplicate, one of which stays with the employer and the other by the employee. The salary and any other compensation amounts should always be in Bahraini dinar. All employees hired in Bahrain using our PEO solution are, of course, part of our services and are hired under a locally compliant contract.

Working Hours in Bahrain

The typical workday in Bahrain is 40 to 48 hours long, averaging 8 hours each day, with 6 hours per day during Ramadan for Muslim employees. Additionally, weekend days are Friday and Saturday; the workweek is Sunday through Thursday. Also, 25% more should be compensated for overtime.

Holidays in Bahrain

In the region, there are nine holidays.

Vacation Days in Bahrain

After a year of employment, employees are typically eligible for 30 days of yearly paid leave. The employee has the right to use earned vacation time in the initial year of employment; which for all workers accrues at a rate of 2 1/2 days each month. As a result, the leave is valid for six consecutive days. Normally, employers cover the cost of an employee’s return flight home while they are on leave.

If they provide a duplicate of the marriage certificate, workers have the right to three days of leave for marriage-related reasons.

Muslim workers who have been working for the business for at least five years are eligible for a single 14-day leave for a pilgrimage to Mecca with pay.

Sick Leave in Bahrain

Employees typically have access to 55 days of sick time annually:

• 15 full-paying days.
• 20 days with half salary.
• 20 days of leave without pay.

Parental Leave in Bahrain

In general, women are eligible for 75 days of leave for childbirth:

• 60 days of leave with pay.
• 15 days of leave without pay.

In Bahrain, women cannot work for 40 days following childbirth.

Health Insurance in Bahrain

Bahrain’s healthcare system is public and private. Bahraini citizens are eligible for free or highly discounted medical care. Foreign nationals can use the same institutions and physicians, but they must pay for their care, so getting health insurance is very important. Employers do not offer additional health insurance benefits; however, employees and employers can negotiate them.

Supplementary Benefits in Bahrain

In Bahrain, housing, transport, and utility reimbursements are typical. Since the overall compensation is ultimately what matters to both parties, we generally advise employers in Bahrain to negotiate the total pay with employees in Bahrain, including any applicable allowances.

Termination in Bahrain

Workers with indefinite contracts in Bahrain who are discharged after 3 months are normally eligible for two days’ compensation for each month worked- This, with a minimum of 1 month salary and a total of 12 months’ pay; regardless of if the dismissal was for cause.

Workers on fixed-term contracts are normally entitled to the salary they would have earned for the remainder of the contract period. A new arrangement may be created if both parties agree, and that agreement must be for at least three months’ pay or the remainder of the term, whichever is less.

Workers in Bahrain who are not subject to the Law on Social Insurance are normally eligible for an indemnity or gratuity at the end of their work term. This indemnity should be set at half a month for the first 3 years of employment and a month for each year beyond that.

Taxes in Bahrain

In Bahrain, there are no individual income taxes.

Workers pay a 1% social tax on their earnings to provide unemployment insurance.

Local employees must also contribute 7% of their earnings to social security, while employers pay 12%. Workers pay 1% while companies pay 3% for foreigners.

Why choose us?

Opening a business in Bahrain to hire a small crew is time-consuming, costly, and complex. Bahraini labor law provides robust worker rights, which demand close attention and expertise in regional quality standards. Connect Resources makes expanding into Bahrain simple and effortless. We can assist you with hiring your ideal candidates. Therefore, handling HR, payroll, and ensuring compliance with local legislation, all without the bother of establishing a firm. Our Bahrain Employer of Record and PEO solution provides you with security, allowing you to focus on managing your company’s affairs.