Powering Payroll, Compliance & Workforce Management in Bahrain

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Simplify Payroll, Compliance & Hiring in Bahrain with Us

How We Help You with Payroll & Compliance in Ghana

Whether you're hiring your first employee or managing hundreds, our team helps you navigate local laws and execute flawless payroll.

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Payroll Outsourcing

Accurate, compliant payroll processing—including local tax filings, reporting, and payslip delivery.

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Employer of Record

Hire employees without a legal entity. We act as legal employer and handle all compliance responsibilities.

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Payroll Software – Bahrain

Global payroll software built for complexity—configurable, compliant, and integrated with your HR stack.

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Compliance Services

Tax and statutory support for onboarding, terminations, and filings in
Bahrain
, standalone or bundled.
Customize your Payroll Solution

Bahrain at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Bahrain
Work Permits & Visas
  • Short-term visas: 72-hour and 7-day visas available on arrival for business travellers with onward tickets and valid passports.
  • Business visa: Required for stays over one week; valid up to four weeks depending on trip purpose.
  • Work visas: Mandatory for all foreign nationals working in Bahrain; valid 1–2 years and provide residency. Employers handle most documentation.
  • Family visas: Immediate family members require a residency permit; cannot work unless they obtain their own work visa.
    • Payroll
  • Payroll Frequency: Monthly; employees must be paid at least once per month.
  • Income Components: Salaries, wages, allowances.
  • Deductions: Mandatory SIO contributions only; Bahrain has no income tax.
  • Employer Contributions:
    • Local employees: 17% (employer) + 8% (employee) = 25% total.
    • Expatriates: 3% (employer) + 1% (employee) = 4% total.
  • Benefits in Kind: Payments for personal or social needs may be excluded from contributions depending on purpose.
  • Minimum Wage (Bahraini nationals):
    • High school diploma: BHD 300
    • Diploma: BHD 380
    • University degree: BHD 450
    • Employment Contracts
  • Contract Types: Fixed-term or indefinite.
  • Probation: Standard 3 months; fixed-term contracts limited to 6 months.
  • Working Hours: 48 hours/week; reduced to 36 hours/week during Ramadan.
  • Overtime:
    • Day: +25% (paid at 125% of normal wage)
    • Night: +50% (paid at 150% of normal wage)
  • Notice Period: Minimum 30 days; can be longer if stated in contract.
  • Termination: Allowed with or without cause; compensation due if no cause.
  • Non-Compete: Enforceable if reasonable in scope and duration.
  • Severance:
    • Indefinite contracts: 2 days’ pay per month of service (min 1 month; max 12 months).
    • Fixed-term contracts: Remainder of contract OR minimum 3 months’ pay.
    • Employees outside GOSI: End-of-service gratuity applies.
    • Employee Benefits
  • Social Security (SIO):
    • Locals: 25%
    • Expatriates: 4%
  • Unemployment Insurance: 3% split between employee, employer & government.
  • Workers’ Compensation: Employer-funded.
  • Health: Public/private system; foreign nationals must generally self-fund or carry insurance.
  • Retirement: Covered via SIO for locals.
  • Annual Leave: 30 days after one year of service.
  • Sick Leave: 55 days (15 full pay, 20 at 50%, 20 unpaid).
  • Maternity Leave: 75 days (60 paid, 15 unpaid); no work for 40 days post-birth.
  • Paternity Leave: 1 paid day.
  • Family Leave: Up to 6 months unpaid childcare leave (max 3 times during employment).
  • Other Leave:
    • 3 days paid marriage leave
    • 14 days paid Hajj leave once after 5 years of service
  • Public Holidays: 9 national holidays.
    • Tax Overview
  • Personal Income Tax: None — Bahrain does not levy PIT on salaries, wages, or allowances.
  • Tax Year: 1 January – 31 December.
  • Double Taxation Treaties: Multiple DTAs in place.
    • Personal Income Tax
    Income Range Tax Rate
    All employment income 0%

    Full Country Guide

    How We Help You with Payroll & Compliance in Ghana

    Want the complete PDF guide for

    Bahrain

    ? We share detailed country guides covering payroll, tax, and compliance — and we send new updates regularly. Just send an email to solutions@praxima.com, and we’ll send it straight to your inbox.

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    Bahrain

    ? Discover how we support compliance and payroll operations in 70+ countries.

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    Why Global Companies Trust Us for Bahrain Payroll

    Trusted Payroll Solutions Backed by Decades of Experience

    With over 30 years of experience managing payroll and compliance across continents, we’re a trusted partner to enterprises in

    Bahrain

    and beyond.

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    Support

    Experts with deep local knowledge guide you through every step—onboarding, payroll, compliance—ensuring smooth operations in

    Bahrain
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    Trust

    Global enterprises and Fortune 500s rely on us for consistent, compliant payroll delivery across complex, multi-country environments

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    Scalable

    Our solutions adapt as you grow, whether you're hiring your first local employee or scaling an international team

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    Compliance

    Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

    Bahrain

    's laws

    See Why Leading Companies Choose Us

    Let’s Talk Bahrain

    Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

    Bahrain
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