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Bahrain EOR & PEO

SALARY PAYMENT IN Bahraini Dinar (BHD)

CONTRACT LANGUAGE Arabic / English

PAYROLL TAX 12.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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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

EOR Platform

Hire in Bahrain, and pay employees through our platform or app.

EOR Cost

Our Bahrain EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Bahrain, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Bahrain labor law.

Local Benefits

We administer all mandatory benefits and contributions in Bahrain.

185+ Countries

It doesn’t stop with Bahrain — we are an international EOR

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
Probationary period3 months (standard)
Termination notice period30 days notice (min.)
Severance

0.5 months’ salary per year of service, first 3 years

1 month’s salary per year of service, each year after 3 years

Indefinite
Probationary period3 months (standard)
Termination notice period30 days notice (min.)
Severance

0.5 months’ salary per year of service, first 3 years

1 month’s salary per year of service, each year after 3 years

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.

Hire compliantly in Bahrain without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Bahrain

There are a number of public holidays in Bahrain. The following days are given as paid leave to many employees each year:

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

DateHoliday name
1 Jan MondayNew Year’s Day
10 Apr SaturdayEid al-Fitr (Tentative Date)
11 Apr to 12 AprEid al-Fitr Holiday (Tentative Date)
1 May WednesdayMay Day
16 Jun SundayArafat Day (Tentative Date)
17 Jun MondayEid al-Adha (Tentative Date)
18 Jun to 19 JunEid al-Adha Holiday (Tentative Date)
8 Jul MondayMuharram (Tentative Date)
17 Jul WednesdayAshoora (Tentative Date)
18 Jul ThursdayAshoora Holiday (Tentative Date)
16 Sep MondayThe Prophet’s Birthday (Tentative Date)
16 Dec MondayNational Day
17 Dec TuesdayNational 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.

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

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

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

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.

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.

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.

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