Remote’s guide to employing in

Bahrain
bahrain flag

With localised contracts, easy invoice management, and best-in-class compliance, you can grow your team in Bahrain with confidence. Currently, you can hire and manage contractors in Bahrain through Remote, but our EOR services are not yet live.

  • Capital City

    Manama

  • Currency

    Bahraini dinar (.د.ب, BHD)

  • Languages

    Arabic and English

  • Population size

    1,569,446

Services available in this country:
Contractor Management
Bahrain skyline

Facts & Stats

Bahrain Map Illustration
  • Capital City

    Manama

  • Currency

    Bahraini dinar (.د.ب, BHD)

  • Languages

    Arabic and English

  • Population size

    1,569,446

  • Ease of doing business

    Very easy

  • Cost of living index

    57.70 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    5%

  • GDP - real growth rate

    1.8% (2019)

The Kingdom of Bahrain is a thriving oil-rich Arab nation filled with towering skyscrapers, bustling souks, trackless desert stretching for miles, ultramodern infrastructure, and an abundance of locals in thobes - white, flowing gowns famously worn all over the Persian Gulf.

Even before it struck oil in 1932, Bahrain has invested aggressively in developing its economy. The only island Gulf nation is powered by banking, tourism, and expanding its trade profile across the Middle East and beyond.

As a result, the Kingdom boasts one of the highest per capita income, strong human development, and social mobility performance in Asia.

Grow your team in Bahrain with Remote

You can pay contractors now in Bahrain with Remote in some currencies (talk to an expert now for full details).

Note that we are busy building our own entity in Bahrain to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.

To employ in Bahrain, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Bahrain can get complicated fast, especially without localised expertise.

If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.

In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks of misclassification

Bahrain, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Bahrain may lead to fines and penalties for the offending company.

Employing in Bahrain

Provisions for employee protections and workers’ rights are spelled out in the Bahraini Constitution and the Labour Law of 2012 which guarantees protections against discrimination based on age, religion, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bahrain.

Minumum wage

There’s no statutory minimum wage in Bahrain; employees are only entitled to whatever rate agreed upon via individual or collective bargaining.

Competitive benefits package in Bahrain

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

We are still busy building our own entity in Bahrain, but our benefits packages for all countries are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Bahrain

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Bahrain.

  • 9%

    Pension

  • 3%

    Work Injury

Types of leave

After completing a year of employment, employees are entitled to a minimum of 30 days of paid holiday annually, accrued at a rate of 2.5 days per month. In practice, this means employees can exercise their holiday entitlement before they’ve completed a year of employment.

Employment termination

Termination process

Bahraini labour law is very flexible on how employee contracts can be terminated.

Employees can typically be let go at will, provided reasonable grounds are defined and a notice period is provided before the termination is scheduled to take effect.

Notice period

Employers are required to provide a notice of termination at least 30 days prior otherwise payment can be made in lieu of notice.

Severance pay

Employees are generally entitled to severance pay if they’re let go without justification.

Severance payments are structured based on an employee’s social security status and the terms of an employment contract, ranging from fixed-term to indefinite contracts.

Fixed-term employees are entitled to whatever remuneration they’d have received for the entire term of the interrupted contract. In contrast, employees on indefinite contracts who’re let go after three months will be owed two days’ pay for each month served, capped at 12 months’ pay — regardless of the circumstances of their dismissal.

Employees who’re not covered by the Law on Social Insurance (typically expats working in Bahrain) are entitled to an end of service gratuity based on their tenure with the employer.

  • Up to 3 years: 15 days salary for each year of service

  • 4+ years: 30 days salary for each year of service

Probation periods

Probation periods can last up to three months.

Fair Pricing in Bahrain

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app