Bahrain Employment Guide

Bahrain, a small island nation in the Persian Gulf, is a financial and commercial hub with a population of about 1.5 million. Its economy is diversified, driven by banking, trade, oil, aluminum, and tourism. Employment is governed by the Bahrain Labor Law, which applies to both local and expatriate workers. The law regulates employment contracts, working hours (generally 48 per week), overtime, annual leave, and termination. Employers must provide health insurance, and social insurance contributions are mandatory for Bahraini nationals. Expatriates require valid work permits sponsored by their employers.

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Currency

Bahraini dinar (BHD)

Capital

Manama

Official language

Arabic (English widely used in business)

Salary Cycle

Monthly

Our Employment Guide in Bahrain

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Understanding Paid Time Off in Bahrain

Employees in Bahrain are entitled to 30 calendar days of paid time off (PTO) annually. This leave accrues at a rate of 2.5 days per month. During the first year of employment, staff can utilize their accumulated PTO based on the duration of their service.

Public Holidays in Bahrain

Bahrain observes seven official public holidays, totaling 13 days off. These include:

New Year's Day
Eid al-Adha - 3 days
Eid al-Fitr - 3 days
National Day - 2 days
Islamic New Year
Ashura - 2 days
Prophet's Birthday

Practical Implications for International Employers

For companies like SailGlobal operating in Bahrain, aligning HR policies with local leave regulations is essential. Properly managing PTO accruals and public holidays helps maintain compliance and employee satisfaction. For instance, planning project timelines around extended holidays like Eid can prevent workflow disruptions.

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