Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
Bahrain does not have a statutory minimum wage for the private sector.
Salaried employees are paid at least once a month.
Bahrain does not require employers pay 13th salaries.
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.
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.
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.
There are 8 public holidays amounting to 14 days of leave.
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.
Pregnant employees receive 75 days of maternity leave. The first 60 days are fully paid, and the last 15 days are unpaid.
Fathers receive one day of paid leave upon the birth of a child.
Only mothers receive leave for maternity leave.
To terminate an employee, an employer must have sufficient grounds for the termination as well as provide a 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.
Employees shall receive:
- First three years: 15 days salary for each year.
- From the fourth year: 30 days salary for each year.
The probation period may last up to 3 months.
5% Standard VAT