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Employer of Record — Kingdom of Bahrain
Employer of Record
in the Kingdom of Bahrain
Deploy workforce across Bahrain through our fully licensed, in-country entity. No setup. Full compliance from day one.
Overview
Country Snapshot
Population
~1.67
Capital
Manama
Currency
BHD
Language
Arabic (English widely used)
Expatriates: ~53%
Bahraini Nationals: ~47%
The Kingdom of Bahrain is an island nation in the Persian Gulf, made up of Bahrain Island and several smaller islands. It is governed under a unitary constitutional monarchy; much of the commercial and financial activity is focused in Manama and nearby urban areas including Muharraq, Northern Governorate, and Southern Governorate.
Hiring & Compliance
Direct Employment. Full In-Country Control.
MasdarEOR is a fully licensed, in-country Employer of Record (EOR) provider in Bahrain. We manage all employment obligations on behalf of clients — ensuring full compliance with local labor and immigration laws.
A valid Bahrain trade license is required to directly sponsor employees
Expatriates must be sponsored under a registered Bahraini entity
Non-compliance with sponsorship and labor laws may result in fines, bans, or deportation
Licensed in
Bahrain — LMRA
Why Use an EOR in Bahrain?
Companies without a legal entity in Bahrain
Businesses facing limitations with visa quota availability
Organizations that prefer to outsource local hiring, payroll, and compliance management
Companies seeking to meet Bahrainization obligations without direct headcount
MasdarEOR can legally employ both expatriates and Bahraini nationals on our license, giving clients immediate access to workforce deployment without establishing a local entity.
Bahrainization Support
Bahrainization Quotas & Support
The Kingdom of Bahrain mandates private sector companies to hire a minimum number of Bahraini nationals under the national Bahrainization policy.
Quota requirements vary by license type and employee headcount
Penalties apply to non-compliance, especially for entities with 50+ staff
01
Employing eligible Bahraini candidates on our EOR platform
02
Full LMRA/SIO registration and pension compliance
03
Local talent sourcing and quota tracking support
Not sure about visa pathways or timelines?
A 30-minute call can save you months. Speak to a UAE deployment specialist — free.
Employment Contracts
Contract Structure
| Language | English & Arabic (dual language) |
| Currency | BHD |
| Contract Type | Fixed-term only (1 year, renewable) |
| Must Define | Title, scope, salary, benefits, working hours, probation, and termination |
Job titles are subject to LMRA availability and tied to qualifications and Bahrainization policies. Not all titles are available and changes can occur without prior notice.
Working Hours & Public Holidays
Work Schedule
Standard Hours
8 hrs/day · 48 hrs/week
Sunday to Thursday
Ramadan
2-hour daily reduction
For Muslim employees
Regular Overtime
125% hourly wage
Standard overtime rate
Rest Days/Holidays
150% + enhanced rate
Night/weekend/holiday work
Paid Public Holidays Include:
New Year's Day
Labor Day
Eid Al Fitr
Eid Al Adha
Islamic New Year
Prophet's Birthday
Bahrain National Day (Dec 16–17)
Need help with payroll structure or compliance?
Every deployment is different. Book a free consultation to get tailored advice on costs, timelines, and the best route for your team.
Leave Entitlements
Time Off Benefits
| Leave Type | Entitlement |
|---|---|
| Annual Leave | 30 calendar days (after 1 year), pro-rated in first year |
| Sick Leave | 15 days full pay, 20 days half pay, 20 days unpaid |
| Maternity Leave | 60 days full pay + 15 days unpaid (with medical certificate) |
| Parental Leave | Not mandated, but may be granted at employer’s discretion |
| Hajj Leave | Up to 14 days paid for Muslim employees with at least 5 years’ service |
Probation & Termination
Employment Lifecycle
Probation Period
Max 6 months
As stated in contract
Probation Notice
1 day notice
From either party during probation
Post-Probation Notice:
30 days (as per contract)
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 End of Service (EOS) Gratuity:
Expatriates:
- <3 years: 15 days/year (4.2% monthly accrual)
- ≥3 years: 30 days/year (8.4% monthly accrual)
Bahraini Nationals
- Covered under SIO
Payroll Compliance
Wage & Salary Regulations
| Salary Payment | BHD only |
| WPS | Mandatory for all salaries |
| Payslips | Issued monthly |
| Pay Cycle | Monthly salary cycle |
| Income Tax | No income tax in Bahrain |
| Repatriation | Final air ticket provided unless employee transfers locally |
Health Insurance
Medical Coverage
Health insurance is not yet mandatory under Bahrain law. However, many employers choose to provide health coverage as part of their benefits package to attract and retain talent. MasdarEOR can assist with health insurance arrangements for employees as needed.
Why Choose MasdarEOR for Bahrain?
We are not a reseller or aggregator. MasdarEOR delivers direct, on-ground service with full compliance. LMRA-licensed entity with authority to sponsor expatriate and national workers across Bahraini jurisdictions.
In-house visa, PRO, HR, legal and payroll infrastructure
End-to-end onboarding, documentation, payroll, and offboarding
Bahrainization quota solutions via direct EOR employment
No hidden third-party costs — all services managed directly