Bahrain EOR & PEO

Start hiring in Bahrain

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Bahrain

Horizons ensures day-to-day guidance to help your business navigate Bahrain labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Bahrain), and that taxes are withheld as required. As the Bahrain Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Bahrain Tax Office. Partnering with our Bahrain EOR is the quickest and most cost-effective way to enter the Bahrain market.

Note, a Bahrain Employer of Record is also known as a Bahrain Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Bahrain labor laws

Employment Laws

Employment contracts in Bahrain

Employers in Bahrain must provide a formal written contract for every hire they make in the country. These contracts need to contain all details of the employment arrangement such as wage/salary, benefits, terminations rules, and more. They should also be written in Arabic and use the local currency of the Bahraini dinar.

Fixed-term

Indefinite

Working hours in Bahrain

The standard working week in Bahrain is between 40 and 48 hours spread across five days. In general, Friday and Saturday as taken as rest days. Ramadan can affect these hours.

Working hours in Bahrain

Holiday Schedule in Bahrain [2024]

Bahrain has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
10 Apr Saturday	Eid al-Fitr (Tentative Date)
11 Apr to 12 Apr	Eid al-Fitr Holiday (Tentative Date)
1 May Wednesday	May Day
16 Jun Sunday	Arafat Day (Tentative Date)
17 Jun Monday	Eid al-Adha (Tentative Date)
18 Jun to 19 Jun	Eid al-Adha Holiday (Tentative Date)
8 Jul Monday	Muharram (Tentative Date)
17 Jul Wednesday	Ashoora (Tentative Date)
18 Jul Thursday	Ashoora Holiday (Tentative Date)
16 Sep Monday	The Prophet’s Birthday (Tentative Date)
16 Dec Monday	National Day
17 Dec Tuesday	National Day (second day)

Bahrain vacation leave

Employees in Bahrain are usually entitled to 30 days of paid vacation leave annually. This entitlement is gained after one year of service with an employer. Before this, vacation is accrued (2.5 days/month). After five years of employment, Muslim employees are also entitled to a one-off 14-day paid entitlement specifically for a pilgrimage to Mecca.

Bahrain sick leave

In general, employees in Bahrain can take up to 35 days of paid sick leave annually. The first 15 days are paid at 100% of normal pay and the following 20 days are paid at 50%. A further 20 days can be taken without pay.

Parental leave in Bahrain

Female employees in Bahrain are entitled to 75 days of maternity leave, in general, with a mandatory 40-day period of leave after giving birth. The first 60 days of leave are paid and the remaining 15 days are unpaid.

Terminations and severance in Bahrain

Employees in Bahrain who are on indefinite-term contracts and have worked for at least three months are entitled to a severance payment upon dismissal. This payment varies depending on the length of service as it generally equates to two days of salary per month of service. For fixed-term contractors, employees will usually need to pay for the time left on the contract when dismissing prior to completion.

Notice of termination is usually 30 days or more.

Taxation in Bahrain

Bahrain does not have a personal income tax. There are also no general corporate taxes for most companies. However, employers must pay a 3% tax on the salaries of employees.

Employees must pay 1% of salaries toward unemployment insurance and 6% for social security. Employers must pay 9% of salaries for social security.

Health coverage in Bahrain

Bahrain has a public healthcare system, but foreign nationals may not qualify for coverage so should always get private insurance. Some employers choose to offer private medical insurance as an employee benefit, but it is fairly uncommon.

hassle-free Bahrain compensation & benefits

Compensation & Benefits

Compensation laws in Bahrain

Minimum wage in Bahrain is BHD 300 per month for public sector employees; no standard for private sector.

Benefit management in Bahrain

Setting up a benefits system for your employees in Bahrain can be confusing if you are not familiar with the nation’s complex labor laws, language, and cultural differences, so it is common to experience delays.

Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Bahrain employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

Bahrain Employer Of Record Peo

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Hire in Bahrain

Employment Laws

Working hours in Bahrain

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What is the difference between a Bahrain PEO and a Bahrain EOR?

Generally speaking, the terms “Bahrain PEO” and “Bahrain EOR” are used interchangeably.

Can an EOR in Bahrain hire both local and foreign nationals to work in Bahrain ?

An EOR in Bahrain can feasibly hire both local and foreign nationals to work in Bahrain.

However, the ability of Horizons to sponsor your foreign national employee in Bahrain may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Bahrain EOR service take to hire an employee?

In most cases, Horizons’ Bahrain EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Bahrain.

Is it possible to get a work visa in Bahrain?

It is possible to get a work visa in Bahrain. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Bahrain are limited, however—get started today to secure your employees’ visa spot.

Bahrain EOR & PEO

Start hiring in Bahrain

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Bahrain

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stay compliant with Bahrain labor laws

Employment Laws

Employment contracts in Bahrain

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Bahrain

Working hours in Bahrain

Bahrain vacation leave

Bahrain sick leave

Parental leave in Bahrain

Terminations and severance in Bahrain

Taxation in Bahrain

Health coverage in Bahrain

hassle-free Bahrain compensation & benefits

Compensation & Benefits

Compensation laws in Bahrain

Benefit management in Bahrain

Hire in Bahrain in 24h without your own local entity.

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