Employer of Record in Bahrain

General Information

• Currency: Bahraini Dinar (BHD)
• Employer Taxes: 20.2%
• Payroll Frequency: Monthly
• Employee Costs: 8%
• Capital: Manama
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: There is no minimum wage in Bahrain.

Payroll

Payroll Cycle: Salaried employees are typically paid at least once a month, usually at the end of the month.

13th Salary

There is no requirement for a 13th salary payment in Bahrain.

Working Hours

General: In Bahrain, the working week typically ranges from 40 to 48 hours, depending on company policy. During Ramadan, the working day is legally reduced to six hours for all staff, though some companies apply this reduction only to Muslim employees who are fasting.

Friday is the designated rest day for Muslims. However, some companies with a five-day workweek may offer a day off on either Thursday or Saturday. Saturday is commonly chosen by international companies to maintain alignment with global operational days, while some companies prefer Thursday due to the school weekend falling on Thursday and Friday.

Employees are not required to work more than 11 hours per day, including working hours and rest breaks.

Private sector companies have discretion over whether to grant time off during public holidays. If employees work on a public holiday, they can choose to take another day off in lieu or receive a 150% salary payment in addition to their regular pay.

If a public holiday falls on a weekend (Friday or Saturday), employers must provide employees with a day off in lieu.

Overtime: Overtime should not exceed two hours per day. Employees are paid their regular wage plus at least 25% for each additional hour worked during the day and at least 50% for hours worked at night. Overtime pay cannot be included as part of the annual salary specified in the employment contract.

Senior managers are exempt from receiving overtime pay.

Leave

Annual Leave (Vacation):

An employee with at least one year of service is entitled to paid annual leave of no less than 30 working days at their regular salary, accruing at a rate of 2.5 days per month.

According to labor law, annual leave entitlement is a statutory benefit that cannot be forfeited. Any accrued but unused leave must either be carried forward to the next leave year or paid out every two years or upon termination of employment.

Public Holidays

The local government decides each year whether holidays that fall on weekends are forfeited or moved to a working day in lieu.

Religious holidays, based on the lunar cycle, are confirmed closer to the date of the holiday.

Sick Days

Employees are not entitled to statutory sick leave until they have completed 3 months of service and provided a medical certificate from an approved healthcare professional.

Once eligible, employees are entitled to up to 55 days of sick leave per year of service, with the following pay structure:

• The first 15 days are paid at full salary.
• The next 20 days are paid at half salary.
• The remaining 20 days are unpaid.

Sick leave entitlements at full or half pay can be accumulated for a maximum of 240 days.

Maternity Leave

Pregnant employees are entitled to 75 days of maternity leave, with the first 60 days being fully paid and the remaining 15 days unpaid.

Upon returning to work, the employee is entitled to an additional two hours each day for nursing until the child is six months old. After six months, women receive two breastfeeding breaks of no less than one hour each.

Paternity Leave

Paternity leave entitlement is up to 5 days after the birth, but generally companies offer 1 day of paid paternity leave.

Parental Leave

Only maternity and paternity leave entitlements are available in Bahrain.

Other Leave

Pilgrimage leave: A Muslim employee with 5 years of continuous service is entitled to 14 working days of fully paid leave to perform Hajj once during their period of service, provided they have not used this leave in any previous employment.

Using an Employer of Record (EOR) service in Bahrain, such as the one offered by Brain Source International, can streamline your operations and ensure compliance with local employment regulations. Here’s how Brain Source International can assist as your EOR in Bahrain:

1. Regulatory Compliance: Brain Source International ensures that your employment practices adhere to Bahrain’s labor laws, including working hours, overtime regulations, and annual leave entitlements.
2. Payroll Management: They handle payroll administration, including calculating wages, managing deductions, and ensuring timely payments. This includes handling any additional compensation for overtime or work during public holidays.
3. Employment Contracts: Brain Source International manages the creation and maintenance of employment contracts, ensuring they comply with Bahraini regulations and reflect the terms agreed upon.
4. Recruitment and Onboarding: They assist with recruiting and onboarding employees, ensuring that all processes are in line with local legal requirements and best practices.
5. Benefits Administration: Brain Source International manages employee benefits, including health insurance and other statutory benefits, ensuring that employees receive their entitled benefits.
6. Risk Management: By acting as the legal employer, Brain Source International takes on employment-related risks, including compliance with workplace health and safety regulations and handling any legal disputes.
7. Flexible Employment Solutions: Their EOR services are ideal for companies looking to hire staff quickly without establishing a local entity or managing independent contractors.

Partnering with Brain Source International as your EOR in Bahrain allows you to focus on your core business activities while ensuring that all employment-related matters are managed efficiently and in compliance with local laws.

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