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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.
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:
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.
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.
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.
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.
There's no legal obligation to provide a 13th or 14th-month salary in Bahrain.
Bahrain does not impose individual income tax.
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.
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:
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.
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.
Bahrain observes 8 national holidays in a year.
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:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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