Employer of Record (EOR) in Bahrain


Bahraini Dinar

Ease Of Doing Business








GDP Growth



Bahrain is a nation in the Persian Gulf that is officially known as the Kingdom of Bahrain. Bahrain is an island nation made up of a tiny archipelago of 70 natural and artificial islands based on Bahrain Island, which makes up about 83 percent of the country’s landmass.

The country is sandwiched between the Qatari peninsula and Saudi Arabia’s northwestern coast, with the 25 kilometer King Fahd Causeway connecting the two.

Bahrain has a population of 1,501,635 people, 712,362 of whom are Bahrainis, according to the 2020 census.

It is Asia’s third smallest nation, after the Maldives and Singapore, with an area of 760 square kilometers. Manama is the country’s capital and largest city.

The ancient Dilmun culture flourished in Bahrain. It has been known for its pearl fisheries since antiquity, and until the nineteenth century, they were considered the best in the world.

During the Prophet Muhammad’s lifetime, in 628 CE, Bahrain was one of the first places to convert to Islam. Following the conquest of Bahrain by Shah Abbas I of the Safavid dynasty under the Persian Empire, Bahrain was ruled by the Portuguese Empire from 1521 to 1602.

Bahrain was captured from Nasr Al-Madhkur by the Bani Utbah clan in 1783, and it has been ruled by the Al Khalifa royal family since then, with Ahmed al Fateh as Bahrain’s first hakim.

Bahrain became a protectorate of the United Kingdom in the late 1800s, following successive treaties with the British. It proclaimed independence in 1971.

Bahrain, which was formerly an emirate, became an Islamic constitutional monarchy in 2002. Protests sparked by the regional Arab Spring erupted in the country in 2011.

Bahrain’s ruling Al Khalifa royal family has been accused of abusing the human rights of activists, political opposition leaders, and the country’s majority Shia Muslim population.

Bahrain established the Persian Gulf’s first post-oil economy, the product of decades of investment in the banking and tourism sectors; many of the world’s largest financial institutions have a presence in Bahrain.

As a result, it has a high Human Development Index and is classified as a high income economy by the World Bank.

Bahrain belongs to the UN, the Non-Aligned Movement, the Arab League, the Organization of Islamic Cooperation, and the Gulf Cooperation Council.

Public holidays

Date Holiday name
Jan 1 New Year’s Day
April 21/22/23 Eid al-Fitr
May 1 Labour Day
June 28 / 29 / 30 Eid al-Adha
July 19 Islamic New Year
July 28 & 29 Ashura
September 27 Prophet’s birthday
December 16 & 17 National Day Holiday

Type of leave

Annual Leave:

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.

Public holidays

There are 10 public holidays in Bahrain.

Sick days

An employee is entitled to 15 days of sick leave on full pay, 20 days on half pay and 20 days without pay.

Maternity leave

60 days’ maternity leave at full pay. A female employee may take a further 15 consecutive or non-consecutive days without pay

Paternity leave

When an infant is born, fathers are entitled to one day of  paid leave.

Employment termination

Termination process

Employers must have reasonable grounds for terminating an  employee and offer a notice period

Notice period

A contract can be terminated by either party by notifying the  other party at least 30 days prior to the termination date.

During the notice period, the labor contract remains in  existence, and all contractual obligations must be met by the  contract’s parties. A payment in lieu of notice must be made  in the absence of notice.

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.

Working hours

General working hours

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.

Employee benefits

General employee benefits

Bahrain’s healthcare system  is a mix of  state  and private providers.

Bahraini citizens have access to free or highly subsidized medical  care. Foreign nationals have access to the same facilities and physicians,  but must pay for treatment, therefore it is highly recommended that they  get health insurance.

Supplemental health insurance benefits are not often  provided by employers, although they may be negotiated in certain circumstances.

Allowances for Allowances for housing, transportation, and utilities are prevalent in Bahrain. We usually suggest discussing total pay with an employee in Bahrain that includes such allowances; otherwise, an employer will be negotiating numerous components when total compensation is ultimately what counts to both sides.


Corporate Tax

Legal entities in Bahrain are not  required to pay a corporate tax.

Individual Income tax

Individuals in Bahrain are not  required to pay an income tax.


From January 1, 2023, 10% VAT will be applicable. However, if the contract is amended, this transitional provision will not apply, and 10% VAT will be applicable for supplies delivered after the date of amendment.


The charge for a Visit eVisa in Bahrain is BD 25, which is almost USD 66.

The  Visit eVisa has a processing charge of BD 4 (about USD 11).

The visit visa cost  will be repaid if an eVisa application is not granted, however the processing fee  will not be refunded.

You can remain in Bahrain for one month with the Visit eVisa. A two-week  extension can be acquired by visiting the NPRA in Bahrain. (Some nations are  allowed to remain longer.) Multiple entries are possible with the Visit eVisa.

From  the previous list of 38 nations, eVisa eligibility has now been expanded to 116.  If you do not satisfy the requirements for a Visit eVisa or if you do not have a  passport, you may be eligible for a visa on arrival, a sponsored visa, or an  eVisa through a Bahraini embassy.

You must satisfy the following conditions in order to apply for a Visa:

  1. You’re probably not in Bahrain. (Those who are already in the Kingdom are  unable to apply for visas.)

  2. You must have a passport (not any other sort of travel document) that is valid  for at least 6 months from the date of your arrival in Bahrain.

  3. To depart Bahrain, you must have a confirmed onward travel ticket.

  4. You must be able to support yourself (and any dependents you bring)  throughout your visit.

  5. Your entry must not jeopardize Bahrain’s national security or wellbeing.

  6. A Visit eVisa must be used within 30 days after approval. (After this period,  your eVisa will expire, and you will need to reapply and pay a new cost.)

  7. Before you may apply for another visa, you must have utilized your current  one or it must have expired. (For a passport, more than one visa cannot be given  at the same time.)

An application’s approval does not happen right away. It will take about 3-5  working days to process your application. When a decision has been reached,  we will notify you through email.

You can print a copy of the permission to take with you when you travel once  your application has been granted, but it is not required. When you arrive in  Bahrain, the passport officer who meets you will have access to your electronic visa.

You should not apply for an eVisa if you want to go to Bahrain with dependents  who are listed on your passport. If you qualify for an eVisa, you should instead  travel to Bahrain and get a visa on arrival. This visa will cover all your  dependents at no additional cost.