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Labor Laws in Bahrain

  • Annual Leave: 30 days
  • Maternity Leave: 75 days
  • Public Holidays: 10
  • Workweek: 40 - 48 hours per week.

Income Tax in Bahrain

There is no personal income tax (PIT) regime in Bahrain.

Value Added Tax (VAT) in Bahrain

The general VAT rate is 10% and applies to most goods and services, with several exceptions where certain goods and services may be subject to a 0% rate or be exempted from VAT.

Social Security in Bahrain

The current rate of contributions to the SIO is 19% for local employees (12% employer; 7% employee) and 4% for expatriate employees (3% employer; 1% employee.)

The Ministry of Health charges an annual health insurance fee of BHD22.5 for each Bahraini employee.

Work Visas Bahrainn

Here is work visa information for Bahrain, download our guide for an extensive breakdown.

To work in Bahrain, all expatriates must have a valid work permit.

To be allotted work visas, an entity that employs expatriates must satisfy the following conditions:

  • It must be established in Bahrain.
  • It must be registered with the Labor Market Regulatory Authority (LMRA.)
  • It must have a certain percentage of Bahraini workers (between 5% and 50%, depending on the industry.)

Hire Bahraini Talent with Global Expansion

Setting up a company in Bahrain can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our Bahrain Employer of Record (EOR) solution gives you the freedom to focus on your business growth.

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