With a population of over 1.5 million and key industries including oil, banking, and aluminum Bahrain offers companies many opportunities for expansion. There are several company types available in Bahrain, and tax rates vary by industry.

Labor and Payroll Considerations in Bahrain:

  • Standard work hours are 8 per day, no more than 48 per week. Working hours during Ramadan are reduced for Muslim workers
  • Employment contracts must be written in Arabic
  • Collective Bargaining Agreements are rare in Bahrain
  • The minimum wage varies based on education level, between BHD 270 – 400 per month
  • There is no income tax withheld from employee pay, but employers who employ over 10 people must pay 10% of employee gross wages to the Social Insurance Organization each month
  • Employers need to register new hires to the Ministry of Labour and Social Affairs and General Organization for Social Insurance
  • Foreign workers seeking employment in Bahrain need a work permit, residency permit and identification card
  • Employers have a quota on the number of foreign workers that can be hired

Funding options for payroll are limited in Bahrain, as you must have a local bank account maintained in Bahrain in order to process payroll. Companies have a choice to pay employees directly, provide bank details to the in-country provider to pay employees, or transfer funds to the in-country provider to process payments to employees.

Blue Marble has created a cloud-based payroll platform with customized reporting to manage your employees in 150+ countries. Our unique, hybrid service model gives you a US-based team and direct access to in-country experts in Bahrain when questions come up. We can help you simplify operations and ensure payroll compliance in Bahrain – click here to get started