Bahrain

• New Year’s Day
• Labour Day
• Hirji New Year
• Ashoora
• The Prophet Muhammad’s Birthday
• National Day Holidays

Working Hours

Employees can work 8 hours a day, up to 48 hours a week.

During the month of Ramadan, work is limited to 6 hours per day or 36 hours per week.

Minimum Wage

Bahraini nationals who hold diploma degrees are entitled to a minimum wage of BHD380 monthly, and Bahraini nationals who hold university degrees are entitled to a minimum wage of BHD450.

Employee Tax

Tax rate	0%
General social insurance contribution — local employees	8%
General social insurance contribution — expats	1%

Bonuses

All employees receive an End of Service Gratuity at the end of their service with the employer. This gratuity is calculated based on length of service.

All contracts must be registered with the Labour Market Regulatory Authority in order to obtain the employee’s work permit and residence visa.

Contracts must be written and in Arabic. They should include:

• Names and addresses of both parties
• Employee qualifications and identification details
• Appointment date and duration
• Job title and responsibilities
• Salary
• Contracted working hours

Annual Leave

Minimum of 30 days' paid holiday per year, provided the employee has worked for at least one (1) year. If an employee's period of service is less than 1 year, leave is calculated on a pro-rated basis.

Sick Leave

15 days' sick leave on full pay. Employees are entitled to a further 20 days' sick leave on half pay and 20 days' unpaid sick leave.

Parental Leave

• Maternity leave: 60 days' paid leave, plus 15 days' unpaid.
• Paternity leave: one day's paid leave.

Termination Process

Employers in Bahrain can terminate a contract provided they give notice in line with legal requirements.

Additional grounds for termination include:

• Expiry of a fixed-term contract
• Redundancy (in some cases)
• Serious breach of contract

Employees can also give notice of termination in line with their contract terms.

Severance Pay

There is no statutory severance pay requirement in Bahrain. Employers must pay for any accrued annual leave and the End of Service Gratuity.

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance system that links all Mauve entities to two preferred providers. As part of our global Employer of Record services, this programme ensures that companies expanding globally through our EOR service have access to reliable and compliant insurance coverage for overseas employees.

The insurance provides comprehensive coverage in international locations via a combination of the master policy and jurisdiction-specific local policies where required by law. This ensures full compliance and protection in line with local employment regulations—key to any international Employer of Record solution.

The policies include:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Limit varies depending on the country of employment

For detailed information about statutory and recommended EOR insurance coverage in your chosen country, get in touch with Mauve’s global compliance team.