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

BHD 270 per month, rising to BHD 350 for those with a diploma degree and BHD 400 for those with a university degree.

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.

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 solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.