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Expand Your Employer of Record Services In Bahrain
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Expand Your Employer of Record Services In Bahrain
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Bahrain At a Glance
Bahrain At a Glance
Bahrain At a Glance
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Easily navigate Bahrain Employment Landscape
Easily navigate Bahrain Employment Landscape
Easily navigate Bahrain Employment Landscape
Discover everything you need to know about working in Bahrain with clear, up-to-date guidance built for employees and employers alike. Our resources explain the essentials of Bahrain’s private-sector Labour Law (Law No. 36 of 2012), how LMRA work permits and residency sponsorship work for expatriates, and what to expect around contracts, workplace rights, and compliant payroll.
Weekly Working Hours
National Holidays
Leave
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage
Medical Benefits
Probationary Periods
Termination Notice
Severance
Understanding Weekly Working Hours in Bahrain
Explore Work hours Employee rights in Bahrain
Explore Work hours Employee rights in Bahrain
Explore Work hours Employee rights in Bahrain
In Bahrain, working hours in the private sector are regulated under the Labour Law for the Private Sector (Law No. 36 of 2012). The standard working time is up to 8 hours per day or 48 hours per week, ensuring a balanced approach to productivity and employee well-being.
Any work performed beyond these limits is treated as overtime and must be compensated at a higher rate. Overtime is generally paid at at least 125% of the normal hourly wage, while overtime worked during rest days, nights, or public holidays is typically compensated at 150% of the regular wage, unless a higher rate is agreed in the employment contract.
Public Holidays and Employee Leave in Bahrain
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
In Bahrain, employees are entitled to paid public holidays, allowing time off to observe national and religious occasions. Alongside public holidays, the Labour Law for the Private Sector (Law No. 36 of 2012) provides statutory leave entitlements that support employee well-being and work–life balance.
Employees are entitled to paid annual leave, sick leave, and maternity leave, with specific durations and conditions defined by law. While Bahrain does not formally recognize parental leave beyond maternity provisions, employers may offer additional benefits through employment contracts or company policies. The law also allows special paid leave for circumstances such as marriage, bereavement, or other approved personal events, depending on eligibility and documentation.
Understanding Employment Contracts in Bahrain
Explore Employment Contracts & Costs in Bahrain
Explore Employment Contracts & Costs in Bahrain
Explore Employment Contracts & Costs in Bahrain
In Bahrain, employers are required to issue written employment contracts that clearly outline job responsibilities, salary, benefits, working hours, and employment conditions, in accordance with the Labour Law for the Private Sector (Law No. 36 of 2012). These contracts must be registered and compliant with regulations overseen by the Labour Market Regulatory Authority (LMRA).
Types of employment
Bahrain recognises multiple types of employment arrangements, including:
Permanent (indefinite) employees
Fixed-term contract employees
Temporary or agency workers (engaged through licensed providers)
Independent contractors, who operate under commercial or service agreements and are not covered by standard employee protections
From a cost perspective, Bahrain offers a business-friendly employment environment. There is no personal income tax on salaries. However, employers must contribute to the Social Insurance Organisation (SIO) for eligible employees. Contribution rates vary based on the employee’s nationality and cover benefits such as pensions, work injury insurance, and unemployment support. There are no health insurance, pension, or unemployment contributions at levels comparable to European systems, keeping overall employment costs relatively predictable.
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ICC classifications, labor leasing, and wage rules in Bahrain
Labor Regulations & Independent Contractor Classification in Bahrain
Labor Regulations & Independent Contractor Classification in Bahrain
Labor Regulations & Independent Contractor Classification in Bahrain
In Bahrain, the distinction between a freelance service contract and a service contract is primarily based on the level of independence and control. Freelancers operate as independent professionals, managing their own schedules, methods of work, and resources, and are not subject to fixed working hours or direct supervision. They may also appoint substitutes or subcontract work, provided this is permitted under the agreement.
Labor Leasing
In Bahrain, assigning workers to perform duties at a third-party location—commonly known as labour supply or manpower outsourcing—is strictly regulated. Only companies licensed by the Labour Market Regulatory Authority (LMRA) are permitted to supply or outsource workers to other businesses. This licensing framework ensures compliance with Bahrain’s labour laws and protects worker rights.
Minimum Wage Requirements
Bahrain does not have a universal statutory minimum wage for private-sector employees. Instead, wages are determined through employment contracts, market practices, and sector-specific arrangements. While there is no legally mandated minimum salary, employers must ensure wages are fair, clearly stated in the contract, and paid in accordance with Bahrain Labour Law requirements.
How pay and health coverage apply during employee illness in Bahrain
Medical Benefits in Bahrain
Medical Benefits in Bahrain
Medical Benefits in Bahrain
In Bahrain, employee medical protection and sick leave entitlements are governed by the Private Sector Labour Law, ensuring income support during periods of illness while balancing employer responsibilities.
When an employee is unable to work due to illness or injury, they are entitled to paid sick leave, subject to providing a valid medical certificate issued by an approved medical authority.
Sick Leave Entitlement in Bahrain
Employees are entitled to 55 days of sick leave per year, structured as follows:
First 15 days: Full pay
Next 20 days: Half pay
Remaining 20 days: Unpaid leave
Sick pay is calculated based on the employee’s basic salary, unless the employment contract or company policy provides more generous terms. Unlike some European systems, Bahrain does not operate a separate state health insurance fund that pays wages during sickness—the obligation rests primarily with the employer within the statutory limits.
Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Bahrain
Probationary Periods & Termination Notice in Bahrain
Probationary Periods & Termination Notice in Bahrain
In Bahrain, employment contracts may include a probationary period of up to three months, during which either the employer or the employee may terminate the employment with a shorter notice period, as specified in the contract. The probation period cannot exceed three months, and its terms must be clearly stated in the written employment agreement.
Termination Notice Periods After Probation
Once an employee has successfully completed probation, statutory notice requirements apply:
Employees paid monthly:
30 days’ notice must be given by either party
Employees paid on a daily, weekly, or hourly basis:
14 days’ notice is required
Employment contracts may provide longer notice periods, but they cannot reduce the minimum notice standards set by law. Notice may also be replaced by payment in lieu, provided it is mutually agreed or contractually permitted.
How termination compensation and background screening are regulated under Austrian labor law
Severance Pay & Pre-Hire Checks in Bahrain
Severance Pay & Pre-Hire Checks in Bahrain
Severance Pay & Pre-Hire Checks in Bahrain
In Bahrain, severance pay is provided as an end-of-service benefit (EOSB) and is paid at the end of employment, rather than through monthly employer contributions. Employees who complete at least three years of continuous service are generally entitled to EOSB, calculated based on the last basic salary and length of service, unless more favorable terms are stated in the contract.
During hiring, employers may conduct limited background checks, including reviewing publicly available online or social media information, where relevant to the role. All such checks must comply with Bahrain’s Personal Data Protection Law (PDPL), ensuring data is used lawfully, fairly, and only for legitimate employment purposes.
