Hire in Bahrain

EOR in Bahrain

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Bahrain, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Bahrain ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Bahrain and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Bahrain

The Labor Code was revised in 2012. The new code enhanced annual leave and other entitlements for employees and streamlined the labor dispute process.

Employment contracts in Bahrain

As you look to hire employees in Bahrain, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Employees cannot be required to work more than eight hours per day or 48 hours in a week. The working hours and rest periods must be regulated so that no worker is present at the workplace for more than 11 hours a day. During the month of Ramadan, Muslim employees cannot be required to work more than six hours per day or 36 hours per week.

Employees are entitled to a break for prayer, meals or rest of at least 30 minutes after working six hours.

Employees are entitled to a day of rest of not less than 24 hours once a week. Employees may be required to work on their weekly day of rest due to business needs.

Employers must receive employees’ consent if they wish them to work on their weekly day of rest more than two consecutive times.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

Bahrain has no minimum wage.

Employees required to work on their weekly off are entitled to a 150% premium on top of normal wages or a paid day off.

Employees must receive 125% of their regular rate of pay for each hour of overtime worked during the day and 150% for overtime hours worked during the night.

Employees who are required to work on an official holiday are entitled to 250% of their regular rate of pay or another paid day off.

As your employer of record in Bahrain, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

The labor code does not address bonuses.

Probationary period

Probationary periods cannot last more than three months. No worker can be employed under a probationary period more than once by the same employer.

Termination and severance

Either the employer or the employee may terminate the contract during the probationary period provided at least one day’s notice is given to the other party.

Employee benefits and paid leave in Bahrain

When negotiating terms of an employment contract with a candidate in Bahrain, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female employees are entitled to 60 days’ maternity leave with full pay, which includes the period before and after the delivery, provided they have completed one year’s continuous service at the commencement of leave.

At the end of the period of paid maternity leave, an employee has the right to extend her maternity leave for a maximum period of 15 days without pay.

Vacation

Employees who have worked for their employer for at least one year are entitled to 30 days of paid vacation accrued at the rate of two-and-a-half days a month. At least six of the days must be taken consecutively. Employees who have worked less than one year are entitled to vacation leave on a prorated basis. Employers may set the dates of leave following the requirements of work.

Employees may not waive their right to vacation leave, but compensation can be paid instead of leave.

Up to two years of accumulated vacation leave may be carried over, and employees must receive payment for unused vacation leave upon termination.

Holidays

Employees are entitled to the following paid holidays:

• New Year’s Day
• Labor Day
• Eid al Fitr (three days)
• Eid al Adha (three days)
• Islamic New Year
• Ashura Eve
• Ashura
• Prophet Muhammad’s birthday
• National Day (two days)

Sick leave

Employees who have completed three consecutive months in the employer’s service and have produced a certificate from a medical center certifying their illness are entitled to the following sick leaves during the same year:

• 15 days on full pay
• 20 days on half pay
• 20 days without pay.

Employees who are sick may make use of their annual leave balance in addition to the sick leave to which they are entitled. An employer cannot dismiss employees due to their illness unless they have exhausted the balance of their vacation and sick leave entitlements.

Health coverage

Bahrain has a state pension scheme that is only open to citizens of the country. The legal retirement age is 60 for men and 55 for women with 10 years of coverage under the system. Early retirement is possible for men with at least 20 years of coverage and for women with at least 15.

Additional benefits

In addition to healthcare benefits, employees in Bahrain are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Bahrain, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: July 19, 2024

Employee onboarding with an employer of record in Bahrain

We write and validate all local employment contracts, streamlining the onboarding process for you and your Bahraini employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Bahrain, we will:

• Schedule a welcome call to discuss HR and employment information for Bahrain, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Bahrain employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Bahrain. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.