Country Payroll Guide Bahrain

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Key Facts

Capital
Manama
Date format
dd/mm/yyyy
Currency
Bahraini Dinar (BHD)
VAT
the standard rate is 5%

Contributions

Employers

Pension Fund
Pension Fund - 9%
Work Related Injury Fund
Work Related Injury Fund - 3%
Total Employment Cost
Total Employment Cost - 12%

Employees

Pension Fund
Pension Fund - 6%
Unemployment
Unemployment - 1%
Total Employee Cost
Total Employee Cost - 7%

Minimum Wage

Minimum Wage

There is no statutory minimum wage.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Working Hours

General Working Hours

40 hours per week.

Overtime

Employee’s cannot work for more than 11 hours a day. Overtime should be paid at a daily rate of 125% and a nightly rate of 150%.

Leave

Paid Time Off

Employees are entitled to a minimum of 30 days paid annual leave once they have completed at least one year of employment.

Public Holidays

8 public holidays.

Sick Days

Employees are entitled to 55 days of sick leave.

Maternity Leave

75 days of maternity leave – the first 60 days will be fully paid, the final 15 days should be unpaid.

Paternity Leave

Fathers are entitled to one day of paternity leave.

Parental Leave

Refer to maternity / paternity leave.

Termination

Termination Process

Reasonable cause and a notice period must be provided.

Notice Period

Employees and employers must give a minimum notice of 30 days before ending the contract.

Severance Pay

Employees who have less than three years of employment will receive 15 days of severance pay for each year of employment, after the fourth year, this will increase to 30 days.

Probation Period

Maximum of three months.

Visa

Employment Visa

To work in Bahrain, non residents must obtain a work permit.