Overview

Capital
Manama
Currency
Bahraini Dinar (BHD)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

9.00%
Pension
3.00%
Work Injury
12.00% Total Employment Cost
Employee

Employee Payroll Taxes

6.00%
Pension
1.00%
Unemployment
7.00% Total Employee Cost
Employee

Employee Income Tax

No personal income tax.
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Bahrain
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
12%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Bahrain
Georgia
Belarus
Ukraine
45%
28%
27.65%
7%
2%
1%
0%

Minimum Wage

General

Bahrain does not have a statutory minimum wage for the private sector.

Payroll

Payroll Cycle

Salaried employees are paid at least once a month.

13th Salary

Bahrain does not require employers pay 13th salaries.

Working Hours

General

Standard working hours are 8 hours per day and 40 hours per week.

During Ramadan, Muslim workers may not work more than 6 hours per day or 36 hours per week.

Overtime

Employees receive their wage plus at least 25 % for each additional working hour for hours worked during the day, and at least 50% for hours worked during the night.

Workers are not to be present at the workplace for more than 11 hours per day; This includes working hours plus rest breaks.

Leave

Paid Time Off

An employee with at least one year of service is entitled to annual leave of no less than 30 paid days at the rate of 2.5 days for each month.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Bahrain
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
30
8
38
2
11
13
5
7
12
10
10
Public Holidays

There are 8 public holidays amounting to 14 days of leave.

Sick Days

Employees receive 55 days of sick leave. The first 15 days are fully paid, the 16th to the 35th days are half-pay, and the 36th to the 55th day is unpaid.

Maternity Leave

Pregnant employees receive 75 days of maternity leave. The first 60 days are fully paid, and the last 15 days are unpaid.

PAID MATERNITY LEAVE (DAYS)
410
365
365
75
45
30
0
Bulgaria
Serbia
Albania
Bahrain
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Fathers receive one day of paid leave upon the birth of a child.

Parental Leave

Only mothers receive leave for maternity leave.

Termination

Termination Process

To terminate an employee, an employer must have sufficient grounds for the termination as well as provide a notice period.

Notice Period

Either party to the contract may terminate this contract following the notification of the other party at least 30 days before the date of the termination. The labor contract remains in force during the notice period and its parties shall execute all of the obligations arising from it.

If notice is not given, payment in lieu must be made.

Severance Pay

Employees shall receive:

  • First three years: 15 days salary for each year.
  • From the fourth year: 30 days salary for each year.
Probation Period

The probation period may last up to 3 months.

VAT

General

5% Standard VAT

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