* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Bahraini Dinar (.د.ب)


AST (GMT +3)

Employment Cost

17.00% + Healthcare fee

Annual Leave

30 days

In-demand Specialties*
Finance & Banking, It & Software Development, Healthcare & Medical Services:

The Ultimate Guide to Hiring Employees in Bahrain

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Bahrain

Employing in Bahrain requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Bahrain with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Bahrain quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Bahrain's strategic investments in banking, tourism, and its resilient oil sector have propelled it to a position of leadership in per capita income and social mobility in Asia, with expanded trade in the Middle East driving its growth.

The country boasts an educated and skilled workforce in finance, technology, and healthcare, supported by ongoing commitment to education and training programs.

Its open economic policy, business-friendly regulations, and robust infrastructure actively attract foreign investment through incentives, tax exemptions, and simplified business setup procedures.

Positioned as a gateway to the Middle East, Bahrain's strategic location in the Gulf region offers advantages for business expansion, being close to Saudi Arabia and other Gulf Cooperation Council (GCC) countries.


Fundamental Aspects of Employment in Bahrain

When recruiting in Bahrain, employers must provide two copies of the contract in Arabic, allocating one for the employer and another for the employee. If the contract is in a language other than Arabic, a translated copy must also be included. The contract should include details such as:

  • Identification of both parties
  • Job responsibilities and duties
  • Location of job
  • Employee's compensation and other benefits

Probationary Period in Bahrain

In Bahrain, a customary probation period of three months is typically observed, though some roles may extend to six months. Termination during this period requires a one-week notice.

Working hours in Bahrain

In Bahrain, the standard workweek is 40 to 48 hours. During Ramadan, working hours reduce to six per day. Fridays are typically the Muslim rest day, but some businesses may opt for Thursday or Saturday off based on global operations or local school weekends.

Overtime in Bahrain

In Bahrain, workers can do overtime up to two hours per day, with compensation of at least 25% extra for daytime hours and 50% for nighttime hours. Overtime pay is separate from the annual salary specified in the contract, and senior managers are not eligible for it.

Navigating Key Aspects of Payroll in Bahrain

Bahrain has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

January 1st - December 31st

Fiscal Year in Bahrain

January 1st - December 31st is the 12-month accounting period that businesses in Bahrain use for financial and tax reporting purposes.

Payroll Cycle in Bahrain

The payroll cycle in Bahrain is usually Monthly, with employees being paid by the end of the month.

Minimum Wage in Bahrain

Minimum wages and salaries in Bahrain

Bahrain does not enforce a government-mandated minimum wage rate. Instead, wages are generally determined through industry standards and negotiations, as agreed upon between employers and employees.

Bonus Payments in Bahrain

There's no legal obligation to provide a 13th or 14th-month salary in Bahrain.

Comprehensive Overview of Employment Taxes in Bahrain

Understanding the tax obligations for both employers and employees is crucial when operating in Bahrain's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Bahrain.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 17.00% + Healthcare fee on top of the employee salary in Bahrain.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Bahrain, the typical estimation for employee payroll contributions cost is around 9%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Bahrain does not impose individual income tax.

Tax Rate Income Bracket

Pension in Bahrain

Bahrain is reforming its pension and retirement system, including increasing employer contributions, revising pension calculations, and raising the retirement age for women. Other changes involve linking pension increases to the social security fund's financial status and requiring employers to fund end-of-service benefits

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Bahrain tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Bahrain

When it comes to terminating employment in Bahrain, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Bahrain, terminating an employee requires valid reasons and a notice period, with office closures needing notification to the Ministry of Labor. Bahraini nationals usually receive more protection and higher compensation. Valid reasons for termination include:

  • Contract expiration
  • Failure to improve after 60 days
  • Redundancy
  • Resignation

Notice Period

Both the employer and employee can end the contract with a 30-day notice. The contract stays valid during this period, with both parties fulfilling their obligations. If there's no notice, payment instead is necessary. During probation, only a week's notice is required.

Severance Pay

In Bahrain, termination entitles employees to salary and benefits until termination, notice or payment instead, payment for unused leave, reimbursement of unpaid business expenses, and an end-of-service gratuity payment (EOSG). If terminated by the employer, EOSG typically equals 50% of monthly salary for each year up to three years, then 100% thereafter, pro-rated for incomplete years of service.

Annual Leave Entitlements and Company Policies in Bahrain

The annual leave entitlement in Bahrain is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Bahrain

Bahrain observes 8 national holidays in a year.

Holiday Date

Paid Time Off in Bahrain

Maternity Leave in Bahrain

Paternity Leave in Bahrain

Sick Leave in Bahrain

Parental Leave In Bahrain

Bahrain's Benefits Built Into Playroll

Competitive benefits package in Bahrain

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Bahrain's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Bahrain

Make your benefits package in Bahrain a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Bahrain

In Bahrain, employers are obligated to contribute to compulsory social insurance for all employed citizens. The Social Insurance Organization (SIO) oversees the fund, offering coverage against a range of risks for employees, including:

  • Pension
  • Work Injury
  • Healthcare

Playroll allows you to provide localized benefits for employees in Bahrain within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Bahrain create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Bahrain

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Bahrain.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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