Bahrain is a constitutional monarchy located in the heart of the Arabian Gulf, west of the Asian continent. It is characterized by its rich civilization and long history of more than five thousand years. The country is situated on the Persian Gulf and comprises a small archipelago made up of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island. Saudi Arabia lies to the west across the Gulf of Bahrain, while the Qatar peninsula lies to the east. The economy of Bahrain is heavily dependent upon oil and gas.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Bahrain.
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Capital :
Manama
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Currency :
Bahraini Dinar (BHD, BD)
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Languages spoken :
Arabic
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Population :
1.75 million (2021 est.)
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Minimum wage 2023 :
No statutory minimum wage in the private sector
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Cost of Living index :
$$$ (44 of 139 countries)
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Payroll Frequency :
Bi-weekly/Monthly
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VAT - standard rate :
10%
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GDP - real growth rate :
2.2% (2021 est.)
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The national holidays mentioned below are valid for the year 2023.
The approximate time for sharing the contract with an employee in Bahrain is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
The maximum working hours should be no more than 48 hours per week. A worker must not work more than eight hours a day, unless otherwise agreed upon, provided that the worker’s actual hours of work do not exceed 10 hours a day.
An employer may employ a worker for extra hours if required by the business conditions. A worker should receive payment for each extra hour equivalent to the wage entitlement increased by a minimum of 25% for hours worked during the day and by a minimum of 50% for hours worked during the night.
A worker may be employed under a probationary period if expressly provided for in the contract of employment, provided that the probationary period does not exceed three months.
However, a probationary period may be increased up to a maximum of six months in respect of the occupations as determined by a resolution of the Minister. The probationary period should not be recognized unless expressly provided for in the contract of employment. No worker should be employed under probation more than once by the same employer.
Either party to a contract of employment may terminate it upon giving the other party 30 days prior notice. If the contract is terminated by the employer, an agreement may be reached to establish a notice period of more than 30 days.
A worker who has completed at least one year’s service with their employer is entitled to annual leave on full pay for a period of not less than 30 days at the rate of two and a half days for each month. If a worker’s period of service is less than one year, they are entitled to such leave upon a quantum meruit in respect of the proportion of their service in that year.
A worker who has completed three consecutive months in the employer’s service and has a proven illness certified by a government health center or clinic is entitled to sick leaves each year as follows:
Working women are entitled to a leave of absence without pay to provide care for their child who is not more than six years of age for a maximum of six months in each case for up to three times throughout the period of her service.
A female worker is entitled to maternity leave on full pay from the employer for 60 days, which must include the period before and after her confinement, provided she produces a medical certificate attested by a government health center or one of the clinics approved by the employer stating the expected date of her confinement.
A female worker may obtain an additional leave without pay due to her confinement for a period of 15 days in addition to the aforesaid leave.
The female worker is prohibited to work during the 40 days following her confinement.
Fathers are entitled to a day off on full pay upon the birth of their child.
A worker is entitled to a three-day leave on full pay in the following circumstances:
A Muslim worker has the right to one month’s leave on full pay if her husband dies. She is also entitled to complete the death Eddah from her annual leave for three months and 10 days. If she does not have an annual leave balance, she is entitled to leave without pay.
A worker is entitled to leave on full pay during Eid and official occasions, which are determined by an Edict to be issued by the Council of Ministers based on the Minister’s submission. In such an event, the worker receives 150% of the wage in respect of the days worked or is granted substitute leave in respect of such days, as elected by the worker. If any of these days fall on a Friday or on a public holiday, the worker must be compensated by having another day in lieu.
Social insurance is mandatory for all employed citizens in Bahrain. The Social Insurance Organization (SIO) is charged with managing the social insurance fund and providing insurance services for all individuals. SIO provides social insurance coverage for employees against risks associated with:
An overview of employer contributions is presented in the table below.
| Benefit | Employer Contribution Rates (Bahrain Citizens) | Employer Contribution Rates (Non-Bahrain Citizens) |
| Pension | 14% | 3% |
| Work Injury | 3% | 3% |
| Healthcare | BHD 22.5 per annum | BHD 72 per annum |
| Total | 17% plus BHD 22.5 | 6% plus BHD 72 per annum |
Employers are required to pay the healthcare fee cost as follows:
The healthcare fee is payable to the Ministry of Health as previously advised through the Labor Market Regulatory Authority by collecting it at the time of issuance and renewal of work permits in respect of non-Bahraini workers, and through the SIO in respect of Bahraini workers.
Employers pay 3% of the monthly wage towards Work Injury Insurance.
All accidents sustained by the insured on their way to work and or on their return from work provided they have not stopped or deviated from their customary route are covered by Work Injury Insurance.
The employer bears the wage on the day of injury, whatever the time of the injury, and the General Authority then bears the daily allowances and pays them to the injured on the payment dates for the duration of the injured person’s inability to perform work or even recover or stabilize their condition by proving permanent disability or death.
Employers pay a contribution of 1% of the wage bill towards unemployment insurance. The Labor Fund pays employer contributions for private-sector employees. The maximum monthly earnings used to calculate contributions for private-sector employees are DHD 4,000.
The Unemployment Insurance Scheme (UIS) is a mandatory contributory scheme and covers all Bahrainis and foreign nationals employed in Bahrain’s formal and informal sectors.
Benefits within the UIS consist of two types, an Unemployment Aid Benefit and the Compensation Benefit. In addition to the monthly benefit, the UIS provides job-matching, career guidance, and training services.
The employer is mandated to contribute 14% of the wage towards the public pension.
The public pension covers the old-age pension, disability pension, and death benefits.
People who have reached the retirement age of 60 for men and age 55 for women with at least 10 years of contribution receive the old-age pension.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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