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Employees in Bahrain are entitled to a minimum of 30 days of paid annual leave at the rate of 2.5 days per month after completing 1 year of continuous service with their employer. Employees who have not yet completed a full year are entitled to annual leave on a pro-rata basis. Employees can accumulate unused annual leave and carry it forward to the next year within the framework and conditions agreed upon with the employer. Young workers’ annual leave shall not be subject to division, reduction, or interruption.

If an employee falls ill during their annual leave, the period of illness certified by a medical practitioner does not count as annual leave, and the employee is entitled to take the equivalent days of annual leave at a later date.

An employee cannot waive their entitlement to leave but may receive a cash consideration in lieu. If the employment contract is terminated, the employee is entitled to payment for any accrued but unused annual leave.

In Bahrain, employees who have worked for 3 continuous months with the same employer are entitled to paid sick leave as follows:

• 15 days on full pay
• Next 20 days on half-pay
• Next 20 days without pay

Employees must be able to prove their illness with a certificate issued by a government health center or a clinic recognized by the employer.

An employee's entitlement to sick leave on full or half pay can be accumulated for up to 240 days. Employees can use annual leave in addition to the sick leave days to which they are entitled.

In Bahrain, female employees are entitled to 60 days of fully paid maternity leave, including pre-and post-birth. They are required to take at least 40 days of leave after delivery. A medical certificate stating the expected confinement date is required and must be authenticated by a government health center or a clinic approved by the employer. An additional 15 days of unpaid leave is available.

It is prohibited to dismiss an employee during her maternity leave.

Female employees must be given 2 breaks of at least 1-hour duration each to breastfeed their newborn child under the age of 6 months. They are also entitled to 2 periods of care for 30 minutes each until the child completes 1 year of age. They have the right to combine both periods and reduce their working hours without reducing their pay.

In Bahrain, fathers are entitled to 1 day of paid leave on the birth of their child.

Minimum Wage

In Bahrain, all employees must be paid fair wages in accordance with the professional custom or as determined by the court. There is no minimum wage for private sector. However, under the National Employment Program to encourage businesses to hire Bahraini nationals in the private sector, the government has set a minimum requirement for wages. For a Bahraini employee with a bachelor’s degree is BHD 450 (Bahraini dinars), for a diploma holder it is BHD 380, and for a secondary school employee or less, it is BHD 300. The government supports a percentage of employees' wages for up to 5 years.

Employees’ wages are fixed according to their individual employment contract, collective employment contract, or the employment regulations in the establishment. An employee’s wage may be calculated by the hour, day, week, month, piece rate, or production.

Wages of employees paid at monthly rates shall be paid at least 1 time a month. In other cases, employees’ wages shall be paid 1 time a week at the most unless there is an agreement to the contrary. Employers are prohibited from transferring an employee employed on monthly terms of employment to daily, weekly, piece-work, or hourly rates without the written consent of the employee.

Overtime, Holiday & Vacation Pay

Employers in Bahrain can instruct their employees to work overtime if the business conditions require it. Employees working for more than the standard working hours in a day or week are entitled to overtime pay at the rate of 25% of their wages for extra hours worked during the day and 50% for extra hours worked during night time. Employees can be required to work on their weekly rest days or public holidays, in which case they must be paid their wages for the day and an overtime wage equivalent to 150% of such wage or shall be given another day off in lieu thereof.

Notice Period

Both employers and employees can terminate an employment contract by giving the other one a prior notice of 30 days. The notice period can be increased by an agreement between the employee and employer. Notice must be given in writing. If a contract is terminated without complying with the notice period, the party that terminates the contract shall pay to the other party compensation equivalent to the employee’s wage for the entire notice period or the remainder thereof, as the case may be. Employees can be terminated without notice in case of gross misconduct.

Employees are entitled to take a leave for 1 day per week or 8 hours intermittently during the week to look for another job. They shall be entitled to their wages for the duration of absence.

Severance Benefits

In Bahrain, permanent employees who have worked with the same employer for more than 3 months are entitled to severance pay worth 2 days’ wages for each month of service and at no less than 1 month’s wages and not exceeding 12 months’ wages. In case of arbitrary dismissal within the first 3 months from the date of commencement of work, the employee is entitled to 1 month's wages as severance.

A new end-of-service benefit scheme was introduced in March 2024 for non-Bahraini private-sector employees covered under the occupational injury insurance branch. Under this scheme, employers must make monthly contributions to the General Organization for Social Insurance (GOSI) at a rate of 4.2% of the employee’s salary for the first three years of employment, and 8.4% thereafter until the end of service. Upon termination, employees are entitled to half a month’s wage for each of the first 3 years and 1 month’s wage for each subsequent year of service. In the event of the employee’s death, the benefit is paid to their beneficiaries in accordance with the inheritance laws of their home country.

Pension

The legal retirement age is 60 years, and they are entitled to full pension if they have paid 240 months of contributions. Employees granted early retirement if they have paid 240 months of contributions before reaching the age of 60.

Old age pension is calculated as one-fiftieth of the average monthly wages during the last 5 years of service multiplied by the number of completed years of contribution to social insurance. If the years of contribution are less than 5, the pension is settled based on the average salary in the actual insured period.

Individuals who reach the age of 60 years before fulfilling the requirement of 240 months’ contributions to be eligible for pension are entitled to a lump sum amount calculated as 15% of the average monthly wages due to the insured on which the insurance subscription was paid during the last 5 years, multiplied by the number of insurance contributions. If the subscription period is less than 5 years, the amount is calculated based on average earnings during the actual subscription period.

Individuals who delay claiming an old-age pension for up to 5 years after reaching the normal retirement age are eligible to receive a pension amounting to a maximum of 90% of their earnings, calculated based on the average monthly earnings of their last 5 years of contributions.

Dependents/Survivors Benefits

Dependents of an insured person in Bahrain are entitled to benefits upon their death in Bahrain. The beneficiaries include surviving spouse, children, parents, or siblings of the deceased.

The pension amount in case of an insured’s death is calculated as one-fiftieth of the last monthly wage on which the insurance subscription was paid, regardless of the subscription period, multiplied by the number of years of insurance subscription, unless the pension calculated as retirement pension is higher. The pension shall not be less than 40% of the last monthly wage of the employee. If the employee is not eligible for a pension, they receive a lump sum amount calculated as 15% of the average monthly wages due to the insured on which the insurance subscription was paid during the last 5 years, multiplied by the number of insurance contributions. If the subscription period is less than 5 years, the amount is calculated based on average earnings during the actual subscription period.

Upon the death of an insured person or pensioner, their widow, eldest son, or their heirs shall be paid in a grant equivalent to 6 months' wages based on the wage which is subject to contribution if they were in employment or to a grant of 6 months pension if they were a pensioner.

Invalidity Benefits

All citizens are covered against disability under the social insurance scheme in Bahrain. If an insured person’s employment is terminated by the reason of permanent disability due to non-employment-related reasons before they attain the age of 60 years, they are eligible for a disability pension, provided they have paid contributions for at least 6 consecutive months or for a total of 12 months with at least 3 consecutive months.

Disability pension is calculated as one-fiftieth of the last monthly wage on which the insurance subscription was paid, regardless of the subscription period, multiplied by the number of years of insurance subscription, unless the pension calculated as retirement pension is higher. The pension shall not be less than 40% of the last monthly wage of the employee. If the employee is not entitled to a disability pension, they receive a lump sum amount calculated as 15% of the average monthly wages due to the insured on which the insurance subscription was paid during the last 5 years, multiplied by the number of insurance contributions. If the subscription period is less than 5 years, the amount is calculated based on average earnings during the actual subscription period.

In case of temporary disability due to work-related injuries, employees must be paid their wages for the duration of treatment until 6 months and 50% of their wages thereafter. Wages are not paid if the injury is a result of employees’ negligence or violation of the employer’s instructions. In the case of permanent disability of less than 30%, employees receive a lump sum benefit, while for disability greater than 30%, employees are entitled to a pension, depending on the degree of disability. These benefits are funded by employers' contributions to employment injury insurance.

Personal Income Tax

There is no taxation on personal income in Bahrain.

Visas

Bahrain issues the following types of visas:

Standard Visas

• Visit visa – Issued or extended to expatriate visitors who have relatives in Bahrain for 1 month, renewable. Holders are not permitted to work (paid or unpaid) during their stay. It requires a letter from the guarantor stating the reason for visit.
• Joining visa – Issued to parents, spouses, and children of Bahraini citizens. Applications must be filed by the guarantor or an authorized representative.
• Enrollment visa for educational institutions – Issued to students enrolled in local or international universities/institutes. Residence permit is also required.
• Business visitor visa – Issued to businessmen and company representatives for meetings, business discussions, and related activities.
• Visa for technical teams – Issued to artistic and technical groups with authorization from the Bahrain Tourism and Exhibitions Authority.

Electronic Visas – Single Entry

• Electronic visa for one-time visit – Permits entry for up to 2 weeks. Applicant must submit passport copy, hotel reservation or residential address, 3-month bank statement showing a minimum income of USD 1,000 per month.
• Investor visa – Issued for stay up to 3 months. Applicant must submit passport copy, hotel reservation or residential address, and return ticket.
• Training visa – Issued for 6 months, renewable, for trainees in institutions or private sector organizations.

Electronic Visas – Multiple Entry

• 3-month multiple-entry visa – Allows multiple visits over 3 months, applicant must submit passport copy, hotel reservation or residential address, 3-month bank statement showing a minimum income of USD 1,000 per month.
• 6-month multiple-entry visa – Issued or extended to nationals of the United Kingdom and Ireland for a validity of 6 months.
• 1-year multiple-entry visa – Valid for multiple entries over a year. Applicant must confirm the purpose of visit
• Multi-year entry visa – Issued for multiple entries over 5 years or 10 years, depending on eligibility.
• 10-Year multiple-entry visa – Granted to U.S. nationals for multiple entries over 10 years.

Work Permits

Employers in Bahrain hiring foreign employees must apply for a work permit for them. The permit can be issued for 1 year or 2 years validity. It can be renewed 6 months before its expiration. The Labour Market Regulatory Authority (LMRA) has introduced a new 6-month work permit for expatriate workers currently working in Bahrain. The initiative is designed to enhance business flexibility and address market feedback and operational needs, complementing the existing 1-year and 2-year permit options.

The following documents must be submitted for the application:

• Copy of foreign employee’s passport, which must be valid for at least 6 months
• Copy of employment contract in Arabic or bilingual
• Copy of report on medical examination of the foreign employee conducted in their country of residence
• Intent to Transfer form
• Letter of approval/no-objection certificate from the competent authority for some specialized professions

The legal minimum age for employment is 15 years in Bahrain. Young workers cannot be employed for more than 6 hours a day. They shall not be permitted to remain in the place of employment for more than 7 consecutive hours. They must have 1 or more rest breaks for a total of at least 1 hour. They must not work consecutively for more than 4 hours. They must not be employed at night or during weekly rest days or public holidays.

Before employing a young worker under the age of 18, the employer must take approval from the employee’s parents or guardians. They must conduct a medical checkup of the young worker to ascertain their fitness for the job. Young workers cannot be employed in difficult or hazardous work that is damaging to their health, safety or moral conduct.

Employers must keep a record of all young workers employed by them, with their names, ages, job duties, and dates of joining. They must conduct regular medical checkups of these employees following consultation with representatives of employers and employees.