Employer of Record in BAHRAIN | INS Global

Country Guide

Employer of Record in BAHRAIN

Last updated: May 15, 2025

Capital City

Manama

Languages

Arabic (official)

Currency

Bahraini Dinar (BHD)

Population Size

1.7 million

Employer Taxes

7%

Employee Costs

5%

Payroll Frequency

Monthly

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Expanding to Bahrain? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

We act as your Employer of Record in Bahrain. When it comes to expanding your business on a global scale, INS Global stands out among the rest as the ideal partner for enhancing efficiency and ensuring compliance. By teaming up with our seasoned Employer of Record in Bahrain, you can effortlessly recruit, hire, and oversee employees without the need to establish a local company. 

Our Employer of Record in Bahrain offers a dependable, streamlined, and cost-efficient solution for sourcing, employing, and managing local talent. With INS Global’s premium Employer of Record services accessible in Bahrain and spanning more than 100 countries, you can expertly manage a diverse and globally dispersed workforce from virtually anywhere in the world. 

By acting as the authorized employer, our dedicated Employer of Record in Bahrain takes on full responsibility for all HR-related functions on your behalf. This efficient process enables you to enter new markets in as little as a week, effectively reducing both the time and costs associated with growing your business overseas. 

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Why Choose an Employer of Record in Bahrain Over Company Incorporation?

Creating a new company takes time but also adds to the expansion cost in Bahrain. Employer of Record services streamline the process and allow you to expand in under a week. 

Working with a Bahraini Employer of Record… 

  • Reduces expansion time 
  • Lowers expansion costs 
  • Ensures legal compliance 
  • Allows you to focus on your business 

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

Are You Commited to the Australian Market for More Than 5 Years?

YES

Will You Be Hiring 10+ Employees in Australia?

YES

Can You Delay Hiring Time for Several Months?

YES

Do You Have an Extensive Global Expansion Budget?

NO

Make Use of

EOR Services

YES

Consider Establishing a Foreign Entity in Australia

Advantages of Using an Employer of Record or Professional Employer Organization in Bahrain

icon EOR

Legal Compliance Assurance

Employer of Record (EOR) providers with specialized knowledge of the Bahraini market can support you in the sourcing and administration of a global workforce, all the while guaranteeing strict adherence to local employment regulations. This proactive strategy aids you in steering clear of expensive fines and penalties. 

icon EOR

Lower Expansion Costs

Teaming up with a local Employer of Record in Bahrain paves the way for international expansion while considerably lowering expenditure. By sidestepping the requirement of establishing a new entity in the area, you can grow your business without a significant increase in operational costs. 

icon EOR

Focus on Growing Your Business in Bahrain

Employer of Record (EOR) services assume all HR-related duties, simplifying your company’s operations and enabling you to focus entirely on expanding your business on the global stage. 

icon EOR

Expand Effortlessly

Establishing a new overseas company in Bahrain is frequently a time-consuming endeavor, with timelines ranging from 4 to 12 months. Conversely, collaborating with a local Employer of Record in Bahrain expedites the expansion process, allowing you to penetrate a new market in as little as 1 week. 

icon EOR

Manage Your HR Online

With INS Global’scloud-based HR platform, you can remotely monitor all your employees and store vital documentation online from anywhere at any time. 

How Does an Employer of Record In Bahrain Work?

INS Global’s Employer of Record in Bahrain helps your company to expand abroad in just 4 simple steps 

1

We work with you to create a custom expansion plan designed specifically for your needs. 

2

Our Employer of Record provides the legal entity perfectly suited to help recruit and manage staff. 

3

We handle all the HR-related tasks like hiring, contract management, and payroll management to ensure legal compliance. 

4

Your employees focus on your goals while we take care of day-to-day HR and legal requirements. 

The Difference Between PEO And Employer of Record Services in Bahrain

PEO (Professional Employer Organization) in Bahrain assists with various human resources tasks, encompassing payroll management, tax handling, contract administration, and more. Think of it as having a strategic HR partner that supports your workforce needs. 

On the other hand, an EOR (Employer of Record) bears similarities to a PEO but also holds the legal capacity required to hire and manage employees on your behalf, simplifying the process for you. 

With a PEO in Bahrain, the employment contract is directly between you and the employee, while the PEO firm assists with HR tasks. In contrast, with an Employer of Record, you retain control over the employment contract, but it is legally structured between the Employer of Record and the employee. 

INS GUIDES

Check Our Labor Law Guides

Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Bahrain

Employment Contracts in Bahrain

Professional employment in Bahrain must always accompanied by a written offer of employment. 
In most cases, employers may include a 3-month probation period in their contracts. This can be extended to 6 months in some cases. 
An employment contract in Bahrain should specify the nature of a position and describe the employee’s role. 
Employees are entitled to a notice period of no less than 30 days. 
Severance pay is required for employees in Bahrain. The amount is dependent on how long that employee has been at the company. Employees are entitled to half a month’s salary for each of the first 3 years of service. If the employee has more than 3 years of service, they are entitled to 1 month’s salary for each year of service. 

Working Hours in Bahrain

  • In Bahrain, Friday and Saturday are the usual rest days. 
  • Full-time employees generally work 8 hours per day or 48 hours per week. 
  • Part-time employees typically work around 20 hours per week. 
  • Employees are entitled to a higher hourly rate for overtime. This is 25% more than the standard rate. 

Types Of Leave

Annual Leave in Bahrain

  • Bahrain has 12 official national holidays. 
  • Employees are entitled to a minimum of 30 days of paid leave per year. 
  • Annual leave adds up at a rate of 2.5 days per month. 

Sick Leave in Bahrain

  • Employees in Bahrain are entitled to 15 days of paid sick leave per year. 
  • Employees can get another 20 days of sick leave in the year but will not be entitled to pay. 
  • Employers can add to the number of days of sick leave but will need to specify everything in the employment contract.  

Maternity / Paternity Leave in Bahrain

  • According to Bahraini law, female employees are entitled to 45 days of paid maternity leave.  
  • This maternity leave must not be deducted from their leave allocation for the year. 
  • Paternity leave is limited to 1 day of paid leave for new fathers. 

Tax Laws in Bahrain

  • Employers in Bahrain are responsible for withholding all taxes and social contributions. 
  • Employees contribute 8% of their salary to social security.  
  • Employers contribute the equivalent of 15% of the employee’s salary to their social security. 
  • There is no personal income tax for residents and employees in Bahrain. 
  • There is no corporate income tax in Bahrain. 
  • Bahraini employers are free from income tax, corporate tax, capital gain tax, and estate tax. 

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Frequently Asked Questions

faqs

While setting up a local entity is an option, collaborating with a local Employer of Record in Bahrain is safer and more efficient than other options. Employer of Records have local expertise and simplify hiring and managing staff on your behalf. 

An Employer of Record in Bahrain handles various HR-related tasks, including payroll processing, tax compliance, contract management, social security deductions, and ensuring compliance for your entire international workforce. 

Establishing a new company abroad can take months to a year, but with INS Global’s Employer of Record services, you can recruit staff and expand in as little as a week. 

Employer of Record services streamline your global expansion plan, and the costs are calculated as a percentage of your employees salary. 

Certainly, working with an Employer of Record in Bahrain is a legal and cost-effective solution that streamlines your expansion plans while managing costs. 

Salaries are typically processed on a monthly basis for full-time employees, while part-time workers may receive weekly or bi-monthly payments. Employers are responsible for deducting taxes and social contributions. 

While recruitment in Bahrain comes with a range of direct and indirect costs, INS Global simplifies and streamlines remote recruitment and staff management, reducing the costs of taking on an international workforce. 

Absolutely, an Employer of Record in Bahrain can recruit and hire employees from all regions, expanding your talent pool globally. 

If youd like to make alterations to an employment contract in Bahrain, you will need the consent of both parties. Working with an Employer of Record makes the entire process simple and efficient by managing the process from start to finish. 

Yes, employers in Bahrain are responsible for deducting all taxes and social contributions from employee salaries. An employer’s contribution to their employees’ social security fund is also considered part of the typical labor burden in Bahrain.  

INS Global tailors its services to your specific needs, assisting you in recruiting and hiring as many or as few employees as necessary. 

Severance pay is required for employees in Bahrain. This is dependent on how long that employee has been at the company. Employees are entitled to half a month’s salary for each of the first 3 years of service.  

If the employee has more than 3 years of service, they are entitled to 1 month’s salary for each year of service. 

In Bahrain, you can hire employees for in-person and remote opportunities with an Employer of Record, allowing you to reduce your overhead costs. 

Certainly! Our recruitment experts possess extensive experience in hiring talent globally. We provide support in recruiting, hiring, and managing your workforce, regardless of your location. 

Bahrain observes 10 public holidays, and most employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid penalties and fines. Collaborating with an experienced Employer of Record in Bahrain ensures compliance during seamless expansion. 

Yes! INS Global facilitates the recruitment and management of a diverse workforce remotely, making hiring both Bahraini citizens and foreigners simple and cost-effective. 

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Bahrain

Date Day Holiday Notes
1 January Wednesday New Year’s Day Celebration of the first day of the Gregorian calendar year.
31 March Monday Eid al-Fitr Marks the end of Ramadan, the Islamic holy month of fasting.
1 April Tuesday Eid al-Fitr Holiday Additional day off following Eid al-Fitr.
1 May Thursday Labour Day International Workers’ Day, honoring the contributions of workers.
6 June Friday Arafat Day Commemorates the second day of the Hajj pilgrimage.
7 June Saturday Eid al-Adha Feast of the Sacrifice, honoring Prophet Ibrahim’s willingness to sacrifice his son.
8 June Sunday Eid al-Adha Holiday Additional day off following Eid al-Adha.
9 June Monday Eid al-Adha Holiday Further observance of Eid al-Adha.
27 June Friday Islamic New Year Marks the beginning of the Islamic lunar calendar year.
5 July Saturday Ashoora Commemorates the martyrdom of Imam Hussein.
5 September Friday Prophet’s Birthday Celebration of the birth of Prophet Muhammad.
16 December Tuesday National Day Celebration of Bahrain’s independence and national identity.
17 December Wednesday National Day Holiday Additional day off following National Day.

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