The Kingdom of Bahrain, a pearl in the Persian Gulf, is renowned for its stunning beaches, vibrant culture, and rich history.
Beyond its tourist attractions, Bahrain offers several advantages for businesses expanding their remote global workforce.
Bahrain’s consistent top ranking in the Ease of Doing Business Index highlights its business-friendly climate. Bahrain is also home to a well-educated population, with a literacy rate of 95% and a strong emphasis on English language proficiency.
Key takeaways:
- The government of Bahrain invests extensively in education, resulting in a highly educated workforce with the skills needed by companies undergoing global expansion.
- Hiring compliantly in Bahrain requires remote employers to abide by local employment laws — covering everything from working hours and employment contracts to mandatory paid leave.
- Bahrain doesn’t offer a digital nomad visa. However, remote freelancers can typically stay on a tourist visa for up to three months.
Advantages of Hiring in Bahrain
Bahrain’s government strongly emphasizes education, particularly in the STEM fields, resulting in a high university graduation rate. This well-educated population ensures businesses can access the skilled talent pool necessary for innovation and growth.
Bahraini labor laws are progressive and protect the rights of employees and employers. There are provisions for working hours, leave entitlements, and termination processes.
Additionally, Bahrain has a lower cost of living than many Western countries.
Here is a quick snapshot of Bahrain:
- Languages: Arabic, English
- Currency: Bahraini Dinar (BHD)
- Capital City: Manama
- Population: 1.8 Million
- Cost of Living Rank: 40th
Strategic Government Initiatives Are Boosting Growth
Bahrain’s government is committed to creating a business-friendly environment, including investing in state-of-the-art business parks such as the Bahrain International Investment Park (BIIP).
Additionally, the government’s Vision 2030 plan stresses the importance of education, with significant funding to improve educational institutions and promote lifelong learning.
Some of the challenges remote workers often cite include issues with connectivity and communication. That’s rarely an issue in Bahrain, which has one of the most advanced telecommunications networks in the Middle East, with nationwide 5G coverage and high-speed internet access.
Common job sectors for remote talent in Bahrain include:
- Finance and Banking
- Information Technology
- Tourism and Hospitality
- Logistics and Transportation
- Education and Training
- Construction
Employment Laws: Hiring Compliantly in Bahrain
Employment Contracts
Bahrain requires employment contracts for all workers. They must be written in Arabic or include an Arabic version. The agreement must outline the terms of employment, including job responsibilities, salary, working hours, and contract duration.
Bahrain’s labor law recognizes several different types of contracts. The two most common are:
- Permanent Contracts: No fixed duration and continue until terminated by either party
- Temporary Contracts: Specified duration and terminate automatically upon expiration
Working Hours & Pay
The maximum workweek is 48 hours — eight hours per day, six days per week. However, specific working hours can vary depending on the job type, industry, and company policies.
Overtime pay is 125% of the wage for every additional hour worked and at least 150% for nighttime shifts.
During Ramadan, there’s a notable exception for Muslim employees, who work only six hours per day to accommodate the country’s cultural and religious practices.
There’s no minimum wage requirement for private-sector employers, but it’s set at BHD 300 per month for Bahraini nationals working in the government.
The minimum wage for public employees under the National Employment and Training Scheme is based on education level:
- High school diploma: BHD 300 per month
- Diploma: BHD 380 per month
- University degree: BHD 450 per month
Probation Periods
While a three-month probation period is standard, it’s not mandatory in Bahrain. The probation period can be extended to six months for specific jobs.
Employer Taxes
In Bahrain, employers must contribute to the Social Insurance Organization (SIO) based on their employees’ gross salaries.
The social security contribution for Bahraini employees is 15%, covering pensions, disability, death, and unemployment benefits. For expatriate employees, the contribution is 3%, which covers employment injuries and unemployment benefits.
Termination Process & Severance Pay
When terminating an employee in Bahrain, employers must have valid reasons, provide a 30-day notice period, or offer payment in lieu of notice. Both the employer and employee can initiate contract termination, ensuring at least 30 days of advance notice.
Severance pay is calculated based on the length of service:
- 3 months to 3 years: 15 days of salary per year worked
- 4+ years: 30 days of salary per year worked
Paid Leave Laws in Bahrain
Vacation and Holiday
Employee benefits in Bahrain include a minimum of 30 days of paid annual leave, which increases with years of service. Employees also receive 14 days of paid time off for public holidays, including important Islamic holidays such as Eid al-Fitr and Eid al-Adha.
In addition to these standard leave entitlements, employees can take three days of paid leave for marriage. In addition, Muslim employees who have worked for the same company for at least five years are eligible to take a 14-day paid leave for a pilgrimage to Mecca once in their career.
Sick Leave
Employees receive up to 55 days of sick leave per year, with the first 15 days paid at full salary, the next 20 at half salary, and the remaining days unpaid. The employee may be required to provide a medical certificate.
Maternity Leave
Pregnant employees are entitled to 60 days of fully paid maternity leave. They also have the option to take an additional 15 days of unpaid leave. Employers are prohibited from terminating an employee’s contract during maternity leave.
Paternity Leave
New fathers receive one paid day off when their child is born.
Bahrain for Remote Workers
While Bahrain doesn’t have a dedicated digital nomad visa, it offers several short-stay options suitable for remote workers.
One of the most popular options is the tourist eVisa, which allows stays of up to three months, giving digital nomads plenty of time to explore the country while working remotely.
The capital, Manama, is a top destination for digital nomads because of its thriving startup community. The city also boasts a variety of coworking spaces, cafes with reliable Wi-Fi, and a vibrant expat community.
Cities such as Muharraq, Riffa, Adliya, and Amwaj Islands also provide several amenities, including shopping malls, restaurants, and entertainment options for digital nomads.
Bahrain’s affordability, reliable infrastructure, and vibrant culture make it an attractive destination for remote workers.
How to Pay Remote Workers in Bahrain
There are several options available to pay global employees, including in Bahrain. This includes bank wire transfers, services like Wise, PayPal, and Payoneer, and cryptocurrency.
However, before setting up a payment method, it’s essential to take the risks into account, such as:
- Ensuring compliance with Bahrain’s payroll regulations
- Fluctuating currency rates can cause over or underpayment
- Risk of employee misclassification
One way to simplify the payroll process and mitigate risk is by partnering with an Employer of Record (EOR), which can handle all of the human resources duties for your Bahraini employees, including payroll.
Hire in Bahrain with Remofirst
The complexities of hiring top talent in Bahrain can be challenging, but Remofirst streamlines the process. As an EOR, Remofirst manages payroll, benefits, and compliance with local labor laws.
With expertise in over 180 countries, including Bahrain, Remofirst ensures a smooth experience when hiring employees and managing onboarding.
