Employer of Record Bahrain (EOR Bahrain)

• Quick, flexible, and easy entry into Bahrain in compliance with local employment laws
• Complete control over business development with your own team
• Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
• Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
• Allowing for easy market exit if necessary
• Integrating your employees into our team through motivational events and special meetings

Hiring in Bahrain offers a dynamic workforce with a range of skilled professionals. The country’s business-friendly environment, combined with its strategic location in the Gulf, makes it an attractive destination for companies looking to hire talent. While there is no personal income tax, employers must ensure compliance with regulations, including social insurance contributions for employees. Bahrain’s diverse labor market caters to various sectors, providing employers with a broad pool of qualified candidates.

In Bahrain, it is legally mandatory to establish a clear, written employment contract in the local language that outlines the terms of the employee’s compensation, benefits, and termination conditions. Employers are required to prepare two copies of the contract, ensuring both parties have a signed copy. Both the offer letter and the employment contract should specify the salary and any compensation amounts in Bahraini dinar, rather than in any other currency.

In Bahrain, a three-month trial period is typical, with the possibility of an extension to six months for certain roles. During this period, either the employer or employee must provide one week’s notice before terminating the employment.

In Bahrain, the typical workweek ranges from 40 to 48 hours, with employees working 8 hours per day. However, during Ramadan, daily working hours for Muslim employees are reduced to 6 hours. The workweek runs from Sunday to Thursday, with Friday and Saturday designated as weekend days. Overtime work is compensated at an additional 25% of the regular hourly rate.

Bahrain has no personal income tax, but individuals working for employers must contribute to the Social Insurance Organisation (SIO) as per the rules.

In Bahrain, it is common for employers to offer housing, transportation, and utility allowances. It is generally advised to negotiate the total compensation package with the employee prior to signing the employment contract to ensure clarity and mutual agreement.

Employment Visa/Regular Work Permit: This is the most common type of permit issued for a specific position with a Bahraini company. The validity typically ranges from one to two years, with the possibility of renewal upon meeting the necessary requirements.

Dependent’s Work Permit: Spouses or dependents of individuals holding a regular work permit may apply for a dependent’s work permit, which allows them to work in Bahrain. However, there are restrictions on the types of jobs they can hold.

Bahrain observes eight public holidays throughout the year:

• New Year’s Day
• Labour Day
• Eid Al-Fitr
• Eid Al-Adha
• Hijri New Year
• Ashoora
• Prophet’s Birthday
• National Day

In Bahrain, employees are generally entitled to 30 days of paid annual leave, which is granted after completing one year of service with an employer. Prior to reaching this milestone, employees accrue vacation leave at a rate of 2.5 days per month. Additionally, after five years of employment, Muslim employees are entitled to a one-time 14-day paid leave for a pilgrimage to Mecca.

In Bahrain, female employees are entitled to 75 days of maternity leave. This includes a mandatory 40-day period of leave following childbirth. The first 60 days of maternity leave are paid, while the remaining 15 days are unpaid.

In Bahrain, employees are typically entitled to a total of 35 days of paid sick leave per year. The first 15 days are compensated at full salary, while the subsequent 20 days are paid at 50% of the regular wage. Employees may also take an additional 20 days of sick leave, though these days are unpaid

The standard notice period for termination is usually 30 days or more.

In Bahrain, employees with indefinite-term contracts who have been employed for at least three months are entitled to a severance payment upon dismissal. The amount of severance is typically calculated as two days’ salary for each month of service. For fixed-term contracts, if an employee is dismissed before the contract’s completion, the employer is generally required to compensate for the remaining duration of the contract.