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Overview
Bahraini Dinar (BHD)
CURRENCY
Manama
CAPITAL
monthly
PAYROLL FRECUENCY
8
PUBLIC HOLIDAYS
0 to 12
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Bahrain
Employer
Company Payroll Contributions
**
- 72 BHD per year for each non-Bahraini worker: Ministry of Health, Healthcare fee
- 22.5 BHD per year for each worker from Bahrain: Ministry of Health, Healthcare fee
- 9.00%
Pension
- 3.00%
Work injury
0% - 12%
Total Employment Cost
- 7.00%
Old age, disability, and death insurance (applicable to Bahraini employees only)
- 1.00%
Unemployment
- 8.00%
Total Employee Cost
0% - 16%
Total Employee Cost
Employee Income Tax in Bahrain
Without income tax.
0.00%
Payroll Contributions in Bahrain
Payroll Cycle
With the Employer of Record in Bahrain, you will be able to properly fulfill the payment process at least one time per month.
13th Salary
Employment laws do not require payment of the 13th month.
Employee Benefit in Bahrain
Visa and work permit in Bahrain
Every person coming from countries outside the GCC need a visa to enter the region.
VAT in Bahrain
The standard rate is 10%.
Working Hours in Bahrain
General
Bahrain workers must work a standard schedule of 8 hours per day and 40 hours per week. However, Muslim employees may not work more than 6 hours per day or 36 hours per week during Ramadan.
Overtime
Employees in Bahrain must receive their salary plus a minimum of 25% for each extra hour they work during the day. Similarly, they must receive their wages plus at least 50% for the hours worked overnight. Therefore, payroll outsourcing is the most appropriate way to make these payments.
Additionally, employees may not work more than 11 hours in a single day. In this case, working hours and rest time are included.
Working Week
Sunday to Thursday.
Employee Termination in Bahrain
Termination Process
With the Employer of Record in Bahrain you can manage the dismissal of employees, for sufficient reasons. In addition, the employer must provide a notice period in these cases.
Notice Period
In this case, contractor management services may establish the notice period in cases of contract termination. Also, both parties can terminate 1 contract through a prior notice of at least 30 days. In addition, the contract remains in force during the said period, so both parties must comply with their obligations.
On the other hand, if the notice period is not given, the employer must make the payment in exchange for this period.
Severance Pay
Properly manage the severance pay through a Professional Employee Organization, as follows:
- For the first 3 years of service, the employee must receive 15 days of salary per year.
- Likewise, from the 4th year onwards, the employee must receive 30 days of salary for each year.
Probation Period
In Bahrain, the probation period is a maximum of 3 months.
Employee Leaves in Bahrain
Paid Time Offs
Employees who have at least 1 year of service in the company are entitled to receive at least 30 days of annual vacation. Thus, with EOR services you can pay for these vacations that are at a rate of 2.5 days for each month.
Public Holidays
There are 8 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
With PEO services you can manage sick leave consisting of 55 days. In this case, for the first 15 days, the employee receives full payment, on days 16 to 35 half payment, and from 36 to 55 no payment.
Paternity Leave
Parents are entitled to receive 1 day of paid leave for the birth of a child.
Paternal Leave
In the country, only mothers receive maternity leave.
Maternity Leave in Bahrain
Pregnant employees are entitled to 75 days of sick leave. Therefore, to pay for and manage this permit, you can contract the services of an Employer of Record in Bahrain. Thus, the employee receives full payment for the first 60 days but no pay for the last 15 days.
There are 75 leave throughout the year.