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POPULATION

1.6m

CURRENCY

.د.ب (BHD)

CAPITAL CITY

Manama

Overview

Bahrain, an island country in the Persian Gulf, is known for its rich history, modern infrastructure, and strategic location as a regional financial hub. With its blend of Arabian traditions and cosmopolitan influences, Bahrain offers a unique cultural experience and a thriving business environment.

The country's economy is diversified, with key sectors including finance, tourism, and manufacturing. Bahrain is a major banking center in the Middle East and has a well-developed infrastructure, making it an attractive destination for investment and trade.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

It is mandatory to conclude an employment contract in writing. An employment contract must be made in Arabic, with 2 copies—1 for each party. If the contract is in another language, an Arabic version must be included. Any internal regulations mentioned in the contract must be attached and signed by both parties. Employment contracts must include the information on employer's and employee's identities, employee's qualifications, position, type of contract, wages, etc.

Employers can include a non-compete clause, applicable after termination, in the employment agreement of an employee whose job allows them to be acquainted with the employer’s customers or to have access to confidential business information. The clause restricts the employee from competing directly with the employer or participating in any project that is in competition with their previous employer. Such agreements can only be concluded with employees who are above 18 years of age. Restriction must not be placed for more than a year after the termination of the contract and must be limited in terms of place and type of work.

Oral Agreements

In Bahrain, it is mandatory to conclude an employment contract in writing. Without a written contract, the employee can prove their rights using any form of evidence. The Civil Law of Bahrain dictates that “a contract shall have no particular form; however, if the law stipulates a certain form to conclude a contract and such form was not complied with, it shall be void.”

Implied Agreements

In Bahrain, it is mandatory to conclude an employment contract in writing. Without a written contract, the employee can prove their rights using any form of evidence. The Civil Law of Bahrain dictates that “a contract shall have no particular form; however, if the law stipulates a certain form to conclude a contract and such form was not complied with, it shall be void.”

Working Hours

The standard work day is 8 hours, and employees cannot be employed for more than 48 hours a week. Muslim employees must not be employed for more than 6 hours a day or 36 hours a week during the month of Ramadan.

Employees must be provided with 1 or more breaks for praying, rest, or having meals for a total of not less than 30 minutes. Employees must not work for more than 6 continuous hours. The intervals of rest shall not be calculated as part of the actual working hours.

There is no obligation on employers to maintain an attendance record.

Public Holidays

  • January 1, Wednesday: New Year's Day
  • April 10, Wednesday: Eid al-Fitr
  • April 11, Thursday: Eid al-Fitr Holiday
  • April 12, Friday: Eid al-Fitr Holiday
  • May 1, Wednesday: Labour Day
  • June 16, Sunday: Eid al-Adha
  • June 17, Monday: Eid al-Adha Holiday
  • June 18, Tuesday: Eid al-Adha Holiday
  • July 7, Sunday: Islamic New Year
  • July 15, Monday: Ashura
  • July 16, Tuesday: Ashura
  • September 15, Sunday: Prophet Muhammad's Birthday
  • December 16, Monday: National Day
  • December 17, Tuesday: National Day Holiday

Probationary Period

Employees in Bahrain can be employed under a probationary period expressly provided for in their employment contracts, provided that it does not exceed 3 months. A probationary period can be increased to 6 months in certain types of jobs. Either party can terminate the employment contract during probation if it becomes evident that its continuance is inappropriate, provided that the party terminating the contract gives at least 1-day notice to the other party.

The probationary period shall not be recognized unless expressly provided for in the employment contract. No employee can be employed under probation more than once under the same employer.

Employment Termination/Severance

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.

Compensation

Minimum Wage

In Bahrain, employees must be paid at least the minimum wage. The minimum wage 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.

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.

Immigration & Visas

Visas

Bahrain issues the following types of visas:

  • Visit visa – This visa is issued/extended to expatriate visitors who have relatives in the Kingdom of Bahrain for a period of 1 month, subject to renewal. They must submit their passport, ID card, resident relatives’ ID, official documents proving kinship, and a letter from the guarantor stating the reason for the visit. The visitor must not work (paid or unpaid) during their visit.
  • Joining visa for first-degree relatives of Bahrainis (parents, spouse, children) – This visa is issued to first-degree relatives of Bahrainis (father, mother, spouse, children). The application must be submitted by the guarantor or authorized person. They must submit the applicant’s passport, a letter from a guarantor, a copy of the applicant’s birth certificate, an ID card, health insurance in Bahrain, a marriage certificate in case of a spouse, etc.
  • Enrollment visa for educational institutions – This type of visa is issued to students enrolled in local or international universities and institutes. They must submit their passport, copy of their ID cards, official letter from the university or institute they are attending, etc. A permanent residence certificate is required if the institute is headquartered in Bahrain. A student residence permit is issued for 5 years for students registered locally, and a residence permit is issued for 1 year for students registered externally.
  • Business visitor visa – This type of visa is issued/extended to businessmen and company representatives abroad to hold meetings, business deals, etc. They must submit their passport, letter from the guarantor, copy of the representative’s ID card, and proof of their profession.
  • Visa for technical teams – This visa is issued/extended to artistic teams and the like according to the permit issued by the Bahrain Tourism and Exhibitions Authority. They must submit their passports, applicant’s ID, and permits from the Bahrain Tourism and Exhibitions Authority.

The following types of visas are issued electronically for a one-time visit:

  • Electronic visa for a 1-time visit – This visa is issued to enter Bahrain for 2 weeks at a time. The applicant must submit a copy of their passport, hotel reservation or residential address in Bahrain, return travel ticket, and 3-month bank statement with proof of regular income of no less than BHD 1,000 (Bahraini dinar).
  • Investor visa – This visa is issued/extended for a period of 3 months once. The applicant must submit a copy of their passport, hotel reservation or residential address in Bahrain, and return travel ticket.
  • Training visa – This visa is issued to trainees in institutions and the private sector for a period of 6 months, renewable for the purposes of training and related matters. The applicant must submit a copy of their passport, a letter from the employer or institute responsible for the training, a hotel reservation, and a return travel ticket.

The following types of visas are issued electronically for multiple visits:

  • 3-month multiple entry visa – This visa is issued for multiple entries over 3 months. They must submit a copy of their passport, hotel reservation or residential address in Bahrain, return travel ticket, and 3-month bank statement with proof of regular income of no less than BHD 1,000 (Bahraini dinar).
  • 6-month multiple entry visa – This visa is issued/extended to expatriates who are nationals of the United Kingdom and Ireland for a period of multiple 6 months.
  • Multi-year entry visa – This visa is issued for multiple entries over a period of 5 years or 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 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

Population 1.6m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

90%

Urban Population

100%

Internet access

82.3%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

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.

Sick 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.

Maternity Leave

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.

Paternity Leave

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

Social Security

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 days’ 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 his 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 1/5 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.

Minimum Age

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.

Unemployment 1.1%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

70.7%

Labor force population share

21.5%

Female share of labor force

76%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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