Employee Leasing Bahrain
Bahrain’s market is rapidly evolving, powered by a young, highly educated population and a growing focus on key sectors such as finance, technology, and manufacturing. As one of the most business-friendly economies in the GCC, Bahrain offers a strategic location that connects you to both regional and international markets. With its world-class infrastructure, low taxation, and initiatives like Bahrain Vision 2030, the country is emerging as a prime destination for investment and growth.
Employee leasing with FMC Group simplifies your entry into the Bahraini market. We eliminate the need for setting up a local subsidiary, enabling you to focus on your core business activities while we take care of essential administrative functions such as payroll, compliance, and recruitment. Our deep understanding of the local market ensures you have access to Bahrain’s top talent, enabling quicker integration, improved cultural understanding, and a strong competitive edge.
Content:
- Advantages of Employee Leasing in Bahrain
- Employee Leasing Services Offered by FMC Group
- Advantages of the Bahraini market
- Recruitment in Bahrain
- Minimum Wage and Payroll
- Social Contributions and Taxes
- Working Hours and Overtime
- Vacation Days
- Parental Leave and Sick leave
- Other Leaves
- Notice Period
- Additional Information
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Advantages of Employee Leasing with FMC Human Resources in Bahrain
- Launching your business activity in Bahrain can be smooth and flexible thanks to the employee leasing services offered by FMC Group, providing you with a hassle-free start without the need to set up a local company.
- Employee leasing frees up your time so you can concentrate on taking strategic decisions and achieving business goals, while we handle administrative tasks like payroll and legal compliance.
- Hiring local talent through employee leasing means faster integration and better cultural understanding, giving you a competitive edge in the Bahraini market.
- FMC Group gives you access to a wide pool of skilled professionals in Bahrain and connects you with the best fit for your needs.
Employee Leasing Services Offered by FMC Group
- We source and recruit top talent aligned with your needs.
- We handle contracts and negotiate the best terms.
- We process all taxes and social contribution payments accurately.
- We provide international-standard and transparent payroll services.
- We track and manage paid vacations for your employees.
- We negotiate and implement private health insurance for your team if requested.
- We keep you updated on your employees and team dynamics.
Management & Reporting Flow of Employee Leasing/Outstaffing Services
Advantages of the Bahraini Market
- Bahrain’s consumer market is flourishing, driven by a young, digital-first population with a median age of 31. With strong smartphone adoption and an expanding e-commerce sector, Bahrain is witnessing a rise in disposable income, offering tremendous potential for growth in various industries. The country’s GDP per capita exceeds USD 25,000, highlighting a prosperous and tech-savvy consumer base that’s increasingly seeking products and services in various sectors.
- Bahrain’s strategic location within the Gulf makes it an ideal gateway for accessing regional and international markets. The country benefits from its proximity to major global trade routes and robust transportation links to Europe, Asia, and Africa. Bahrain’s well-developed ports and infrastructure also enhance its position as a key logistics hub in the Middle East, ensuring smooth trade flows and efficient business operations.
- The Bahraini government is heavily investing in the development of its workforce through numerous programs aimed at equipping local talent with future-ready skills. Initiatives such as Tamkeen and the National Employment and Training Scheme are helping bridge skill gaps, particularly in high-demand fields like technology and finance. With more graduates entering STEM disciplines, Bahrain has cultivated a skilled workforce capable of supporting diverse sectors.
- Bahrain’s advanced infrastructure and commitment to creating a business-friendly environment position it as a prime location for investment. Ranking consistently high in global business indices, the country provides a competitive edge for businesses looking to expand. Bahrain is also focusing on the development of sectors such as financial services, renewable energy, and technology, driven by its long-term vision outlined in the Bahrain Economic Vision 2030.
- As part of its broader strategy, Bahrain is actively encouraging foreign investment with incentives like tax exemptions, streamlined procedures, and the establishment of special economic zones. These measures aim to attract both regional and international companies looking to establish a presence in the Gulf, further boosting Bahrain’s reputation as an open and competitive market for investors.
Recruitment in Bahrain
Minimum Wage and Payroll
- In Bahrain, the established minimum monthly wage is BHD 300 (EUR 780).
- Most salaries in Bahrain are paid on a monthly basis, although some industries may offer weekly payments for specific roles, particularly in manual labor sectors.
Social Contributions and Taxes
Employer Contributions | |
Social Insurance Tax (for Saudi employees) | 14% |
Social Insurance Tax (for foreign employees) | 0% |
Employee Contributions | |
Social Insurance Tax (for Saudi employees) | 7% |
Social Insurance Tax (for foreign employees) | 0% |
Employee Income Tax | |
Income Tax (for Saudi employees) | 0% |
Income Tax (for foreign employees) | 0% |
Working Hours and Overtime
- In Bahrain, the maximum working hours are 48 hours per week, with a daily limit of 8 hours
- During Ramadan, work hours are reduced to 6 hours per day.
Employees in Bahrain are entitled to their regular wage, plus a minimum of 25% extra for each additional hour worked during the day. For hours worked at night, the additional pay is at least 50% above the regular wage.
Vacation Days
- An employee who has completed at least one year of service is entitled to a minimum of 30 paid vacation days, accruing at a rate of two and a half days per month.
- There are 8 public holidays in Bahrain
- New Year’s Day
- Eid Al Fitr
- Labour Day
- Eid Al Adha
- Al Hijra New Year
- Ashoora
- Prophets Birthday
- National Day
Parental Leave and Sick Leave
- Pregnant employees are entitled to 75 days of maternity leave, with the first 60 days being fully paid and the remaining 15 days being unpaid.
- Fathers are not entitled to paternity leave
- Employees are entitled to 55 days of sick leave. The first 15 days are paid in full, days 16 through 35 are compensated at half pay, and days 36 through 55 are unpaid.
Other Leaves
- In Bahrain, employees are generally entitled to 3 days of paid bereavement leave upon the death of a close family member
- Employees are entitled to 3 days of marriage leave as per Bahraini labor law.
- In Bahrain, employees are entitled to 14 days of paid leave for Hajj, provided they have completed five consecutive years of service.
Notice Period
- Either party may terminate the contract by providing the other with a notice at least 30 days prior to the intended termination date.
- The contract will remain in effect during the notice period, and both parties are expected to fulfill their respective obligations. If no notice is given, compensation in lieu of notice must be provided.
Additional information
- You can access further information on Saudi Arabia’s investment promotion platform:Invest Bahrain.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.