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From
$249/month
$49/month
2% of gross salary / month
Horizons ensures day-to-day guidance to help your business navigate Bahrain labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Bahrain), and that taxes are withheld as required. As the Bahrain Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Bahrain Tax Office. Partnering with our Bahrain EOR is the quickest and most cost-effective way to enter the Bahrain market.
Note, a Bahrain Employer of Record is also known as a Bahrain Professional Employer Organization (PEO).
Hire in Bahrain, and pay employees through our platform or app.
Our Bahrain EOR solution is the most affordable on the market.
Fast onboarding in Bahrain, hire in as little as 24 hours.
We draft labor contracts compliant with Bahrain labor law.
We administer all mandatory benefits and contributions in Bahrain.
It doesn’t stop with Bahrain — we are an international EOR
3 months (standard)
30 days notice (min.)
0.5 months’ salary per year of service, first 3 years
1 month’s salary per year of service, each year after 3 years
3 months (standard)
30 days notice (min.)
0.5 months’ salary per year of service, first 3 years
1 month’s salary per year of service, each year after 3 years
The standard working week in Bahrain is between 40 and 48 hours spread across five days. In general, Friday and Saturday as taken as rest days. Ramadan can affect these hours.
Bahrain has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| 1 Jan Wednesday | New Year’s Day |
| 5 Jan Sunday | Arabian Gulf Cup Holiday |
| 28 Mar to 2 Apr (Friday – Wednesday) | Eid al-Fitr Holiday |
| 1 May Thursday | Labour Day |
| 5 Jun Thursday | Arafat Day (Tentative Date) |
| 7 Jun to 9 Jun (Saturday – Monday) | Eid al-Adha (Tentative Date) |
| 27 Jun Friday | Islamic New Year |
| 4 Jul – 5 Jul (Friday – Saturday) | Ashoora Holiday (Tentative Date) |
| 5 Sep Friday | The Prophet’s Birthday |
| 16 Dec Tuesday | National Day |
| 17 Dec Wednesday | National Day Holiday |
Female employees in Bahrain are entitled to 75 days of maternity leave, in general, with a mandatory 40-day period of leave after giving birth. The first 60 days of leave are paid and the remaining 15 days are unpaid.
Employees in Bahrain who are on indefinite-term contracts and have worked for at least three months are entitled to a severance payment upon dismissal. This payment varies depending on the length of service as it generally equates to two days of salary per month of service. For fixed-term contractors, employees will usually need to pay for the time left on the contract when dismissing prior to completion.
Notice of termination is usually 30 days or more.
Bahrain does not have a personal income tax. There are also no general corporate taxes for most companies. However, employers must pay a 3% tax on the salaries of employees.
Employees must pay 1% of salaries toward unemployment insurance and 6% for social security. Employers must pay 9% of salaries for social security.
Bahrain has a public healthcare system, but foreign nationals may not qualify for coverage so should always get private insurance. Some employers choose to offer private medical insurance as an employee benefit, but it is fairly uncommon.
Minimum wage in Bahrain is BHD 300 per month for public sector employees; no standard for private sector.
Setting up a benefits system for your employees in Bahrain can be confusing if you are not familiar with the nation’s complex labor laws, language, and cultural differences, so it is common to experience delays.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Bahrain employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
Generally speaking, the terms “Bahrain PEO” and “Bahrain EOR” are used interchangeably.
In most cases, Horizons’ Bahrain EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Bahrain.
It is possible to get a work visa in Bahrain. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Bahrain are limited, however—get started today to secure your employees’ visa spot.
Holiday Schedule in Bahrain [2025]
