EOR Service in Bahrain

Hire, Onboard and Pay Employees in Bahrain Quickly and Efficiently

Hiring in Bahrain at a glance

CURRENCY
Bahraini Dinar (BHD)
working hours
48 hours per week
public/bank holidays
15-18 days
capital
Manama
language
Arabic, English
date format
DD/MM/YYYY
remote workers
1.2M
tax year
January 1 to December 31
minimum hourly salary
No minimum wage
CURRENCY
Bahraini Dinar (BHD)
working hours
48 hours per week
public/bank holidays
15-18 days
capital
Manama
language
Arabic, English
date format
DD/MM/YYYY
tax year
January 1 to December 31
payroll frequency
Monthly
GDP
USD 43.88 billion

Employer of Record in Bahrain

Want to hire employees in Bahrain? An Employer of Record (EOR) solution can make things easy. With EOR services, you can follow the rules, pay employees, and give them the right benefits, even if your company doesn't have an office in Bahrain.


If you work with Gloroots' Bahrain EOR, you can hire people faster. It doesn't matter if your company is big or small, or if you want to grow quickly or slowly. Gloroots' EOR services can help you with everything so that you can focus on your main work. This way, you can find talented people in Bahrain and explore business opportunities without worrying too much about complicated rules.

Why use Bahrain EOR?

Instead of creating a new part of your business in Bahrain, which takes time and money, you can work with a Bahrain PEO / EOR.


Bahrain has certain nuances in its labor laws that need some meticulous attention. For example, Bahrainization is a policy that mandates employers to employ Bahrain nationals up to a certain percentage of their workforce. Such legislation may be common within a county or a state, however, a national policy as such is rare.


In addition to this, laws around working hours, annual leaves, maternity leaves will differ from your home country. And collective bargaining agreements are common in the private sector, violating which employers may need to pay penalties to the government. 


By working with a Bahrain EOR, you offload (onto the EOR) the onus of creating compliant employment contracts. Moreover, since an EOR acts as the primary employer for your Bahraini talent, all risks around non-compliance and termination risks fall upon the EOR.  


EOR Costs in Bahrain

You can use Gloroots’s EOR solution at a fixed price, with no hidden fees. Plus, the price won't change even if your employees make more money or get bonuses. This means you can plan salary budgets without surprises.

When you work with a Bahrain EOR company like Gloroots, everything is clear and simple. Our experts will help you understand the cost, so you know you're getting the best deal.

Key Metrics For Foreign Employers

Refer to the figures below from the Global Talent Competitiveness Report and reflect on hiring from Bahrain.

Factors Global Ranking Interpretation
Rule of law 44 Indicates effectiveness of law enforcement
Labour-employer cooperation 12 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 59 Indicates average QS rankings
Labour productivity per employee 16 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 32 Indicates findability of skilled talent
Workforce with tertiary education 96 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Why work in Bahrain?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Bahrain

Risks of misclassification

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Employing in Bahrain

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax

No tax on personal income.

Other Taxes and Social Security contribution:

Employer Payroll Contributions:

Description Contribution
Old Age, Disability, and Death Insurance (GOSI) 14% (local workers)/3% (expat workers)
Insurance against employment injuries (applicable to all employees) 3 %
Ministry of Health, Healthcare fee BD 72 per annum for every non-Bahraini worker
Ministry of Health, Healthcare fee BD 22.5 per annum for every Bahraini worker
Total Employment Cost 17.00% + Healthcare fee

Employee Payroll Contributions:

Description Contribution
Insurance against old age, disability, and death (applicable only to Bahraini employees) 8% (local workers)/ 4% (expat worker)
Insurance against unemployment injuries 1%
Total Employee Contribution 9.00%

Separation

Termination Process

To end an employee's job, the employer needs to have good reasons and tell the employee ahead of time. There are several situations when this can happen:

  • During a trial period
  • When a fixed-time contract is done
  • If the employer has a good reason and gives enough notice
  • If the employee doesn't improve after having a chance (usually 60 days)
  • If the employee quits, can't work, passes away, is no longer needed, or reaches retirement age (usually 60)
  •  If there are reasons listed in Article 107 of the Labor Law
  • If a company has to close, they must let the Ministry of Labor and Social Development know. Local workers might get more protection from losing their job in such cases, and they might get more money from the government.

Notice Period

Either the employer or the employee can end the contract, but they have to tell the other person at least 30 days before. The contract still applies during this time, and both sides have to do what they agreed to. If there's no notice, the person who ends the contract has to pay money instead. During the trial period, only one week's notice is needed.

Severance Pay

Unless the termination is done according to Article 107 of the Labor Law, employees might have rights to get paid until their last working day, notice (or money instead of notice), money for unused annual leave, a payment when their job ends called an end-of-service gratuity payment (EOSG), and the employer might have to pay them back for any work-related expenses they didn't get paid for.

If the employer ends the job, the employee can get an EOSG payment based on how long they worked:

Years of Work Compensation
1 year 50% of Monthly Salary
2 year 50% of Monthly Salary
3 year 50% of Monthly Salary
4 year 100% of Monthly Salary
5 year 100% of Monthly Salary
6 year 100% of Monthly Salary

If someone worked part of a year, the payment is adjusted to match that time.

Probation Periods

Many companies have a three-month trial period, but for some jobs, it can be extended to six months. During this time, one week's notice is needed.

Start Hiring in Bahrain today

Hiring people in Bahrain comes with many rules to remember. You need to understand employment laws, paying employees correctly, following fairness and data protection rules, and more. All of these things can make the hiring process a bit complicated.

But don't worry, Gloroots can make things simpler for you. Our complete solutions offer an easy way to manage everything when you hire people in Bahrain. Our experts will help you with hiring from different countries and following the rules for payment and work. We assist with employment agreements, ensuring timely payments, and providing the right benefits. This lets you focus more on selecting the best candidates.

You can trust Gloroots to make the process of hiring from different parts of the world straightforward and hassle-free.

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Experience Seamless Hiring in Bahrain?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Bahrain.

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