Bahrain is enhancing its position as a leading business hub in the Gulf, and its employment and labour laws play a key role in ensuring fair, transparent, and productive working environments. As we move into 2025, recent reforms and updates strengthen both employer and employee protections. This comprehensive guide dives deep into the legal framework, practical steps, and emerging trends shaping Bahrain’s labour landscape.

Bahrain’s Updated Labour Legal Framework

In 2025, Bahrain’s labor regulations have been enhanced to reflect modern workplace needs, including remote work, gig economy inclusion, and equal opportunity standards. The Ministry of Labour & Social Development enforces these laws, aligning them with global best practices to ensure fairness and transparency in employment.

Foundation of the Labour Law in 2025

The cornerstone of Bahrain’s labour system is Labour Law No. 36 of 2012, updated periodically to reflect modern workplace challenges. In 2025, these updates address flexible working, equal opportunities, remote work, and tech-driven workplace expectations.

Role of the Ministry of Labour & Social Development

The Ministry enforces compliance, mediates disputes, licenses recruitment agencies, and sponsors training programs like Tamkeen. It ensures labour standards are upheld and evolves with changing workforce needs.

Integration with Other Legal Systems

Bahrain’s legal regime interacts with commercial law, social security, and nationalization (Bahrainization) policies—creating a cohesive regulatory environment for employers and employees alike.

Employment Contracts & Terms

In Bahrain, employment contracts must clearly state salary, working hours, probation duration, and benefits. Contracts can be fixed-term (up to five years) or open-ended, and must detail notice periods, overtime, and leave entitlements. Any changes require written consent and approval from the relevant labor authorities.

Types of Employment Contracts

Bahrain recognizes limited-term contracts (up to 5 years, renewable) and indefinite-term contracts. Terms must include salary, nationality, job title, probation, leave entitlements, and termination clauses.

Mandatory Contract Elements

Under the law, contracts must detail:

• Working hours and overtime rules
  
• Probation period (up to 3 months)
  
• Notice period, benefits, and allowances
  
• Place of work, job description, social benefits
  

Changes within Employment Terms

Any change to terms requires mutual agreement, amendment in the contract, and formal filing with labor authorities—protecting both parties.

Working Hours & Overtime

In Bahrain, the standard workweek is 40–45 hours, with work typically spread across five or six days. Employees may work up to two hours of overtime daily, paid at a rate of 1.25 times their regular wage. Overtime on rest days or holidays may attract double or triple pay.

Standard Work Week & Hours

The standard is 40-45 hours per week, distributed over five or six days. Friday is a paid day off, aligning with Bahrain’s religious and cultural practices.

Overtime Regulations & Pay Rates

Overtime is capped at two hours per day. Employers must pay 1.25x the regular hourly rate for overtime work. If work happens on rest days or holidays, it may be doubled or tripled depending on circumstances.

Remote & Flexible Working Options

2025 reforms permit telework and hybrid models, provided agreements stipulate monitoring, equipment, work hours, and data protection expectations.

Minimum Wage & Salary Guidelines

Bahrain doesn’t enforce a universal minimum wage, but mandates BHD 300 for Bahraini public-sector employees and usually BHD 250 minimum salary for private-sector visa eligibility. Salaries are negotiated based on market rates, and employers must comply with LMRA guidelines and the Wage Protection System to ensure payment transparency.

National Minimums for Public and Private Sectors

While no universal minimum wage exists, the government mandates BHD 300 for Bahraini nationals in public-sector roles. Private-sector contracts are market-driven but must respect LMRA guidelines, often requiring BHD 250 minimum for visa eligibility.

How Salaries Impact Work Visas

Salary levels directly influence work visa approvals and renewals under LMRA rules. Employers must clearly outline salary, currency, allowances, and payment frequency in contracts.

Payment Protection through WPS

Bahrain’s Wage Protection System (WPS) requires employers to pay salaries via bank transfer, ensuring transparency and providing evidence of financial compliance.

Leave Entitlements & Public Holidays

Employees in Bahrain are entitled to 30 days of paid annual leave after one year of service, with earlier periods prorated. Sick leave includes 30 days full pay and 60 days at reduced pay. Bahrain also observes national public holidays, and working on these days requires overtime compensation.

Annual Leave Policies

Employees earn 30 days of paid leave annually after completing one year. Part-timers and earlier years receive pro-rated leave.

Sick Leave and Medical Rights

After completing 6 months, employees become eligible for 30 days’ full-pay sick leave, followed by reduced pay for the next 60 days. Medical certificates must be issued by qualified physicians.

Maternity, Paternity & Family Leave

Female employees are granted 60 days of maternity leave (half paid, half unpaid), plus optional extended unpaid leave. Fathers are entitled to 10 days of paternity leave paid at full salary.

Public Holiday Observances

Employees enjoy national public holidays such as Eid, National Day, and Islamic New Year. For work on a holiday, overtime pay is required.

Social Security & End-of-Service Benefits

Employees in Bahrain are covered by the General Organization for Social Insurance (GOSI), which provides pensions, disability, and survivor benefits. Workers completing at least one year of service are entitled to an end-of-service gratuity calculated according to local law. Final payouts also include unused leave and other contractual entitlements.

General Organization for Social Insurance (GOSI)

Bahraini employees must be registered with GOSI, which provides old-age pensions, disability, and survivor benefits. Employers and employees share contributions.

End-of-Service Gratuity Entitlements

Employees completing at least one year are entitled to a gratuity payment, depending on salary and service duration. This is calculated via formula to ensure fair exit provisions.

Termination Rights and Penalties

Employers may offer termination with notice or pay in lieu. Termination without cause prior to 1 year or without notice may lead to severance pay. Wrongful dismissal can result in legal penalties.

Bahranization & National Employment

Bahrainization is a national policy aimed at increasing the employment of Bahraini nationals in the private sector. Employers must meet specific quotas based on industry and company size. The government supports this with training programs, wage subsidies, and initiatives to boost local workforce participation across all sectors.

Bahrainization Policy Overview

Since 2025, Bahrain enforces sector-specific employment quotas for Bahraini nationals. Private firms are required to adhere to thresholds in sectors like banking, hospitality, and IT.

Skilled vs. Semi-Skilled National Hiring Mandates

Higher quotas exist for skilled roles, while introductory quotas apply to semi-skilled positions. Failure to meet quotas may result in hiring restrictions or levies.

Incentives for National Employment

Companies may receive financial incentives, training support, or expedited visas when hiring and retaining Bahrainis in key roles.

Occupational Health, Safety & Anti-Discrimination

Employers in Bahrain must ensure a safe workplace with proper PPE, safety training, and risk assessments to comply with occupational health standards. All private-sector staff must have health insurance, and businesses must enforce anti-discrimination policies, ensuring fair treatment regardless of gender, nationality, religion, or disability.

Workplace Safety Regulations

Employers must ensure safe working environments, including PPE, regular risk assessments, and emergency plans. Non-compliance can lead to penalties and fines.

Health Insurance Requirements

All private-sector employees must have health insurance, either provided by the employer or through approved public options.

Anti-Discrimination Laws

Bahrain’s laws prevent discrimination based on gender, nationality, religion, or disability. Concrete policies, grievance channels, and visible enforcement support equality.

Dispute Resolution & Legal Processes

Bahrain offers structured legal channels for resolving employment disputes, starting with mediation by the Labour Directorate. If unresolved, cases proceed to Labour Courts. Employers and employees must follow proper procedures, submit documented evidence, and respect legal timelines to ensure fair and lawful outcomes in workplace conflicts.

Informal Mediation & Employer Resolution

The Ministry supports conciliation between employee and employer before formal cases are introduced.

Labour Courts & Judicial Review

Disputes unresolved through mediation can be escalated to Labor Courts, which handle claims relating to wages, discrimination, or unfair dismissal. Judgments are legally enforceable.

Appeal Mechanisms and Sanctions

Labor law allows for appeals in higher courts. Employers and employees may face fines, reputational risk, or penalties for non-compliance.

Recruitment, Agencies & Work Authorization

Recruitment in Bahrain is regulated through LMRA-licensed agencies that handle hiring, visa processing, and work permits. Employers must sponsor foreign workers, file visa applications, and ensure eligibility under work authorization rules. Proper agency use and compliance ensure smooth, legal onboarding and protect against labor violations.

LMRA Licensing for Sponsors

Private firms hiring foreigners need licenses from LMRA. They cover work visas, renewal, and eligibility.

Recruitment Agency Guidelines

Only LMRA-licensed agencies are permitted to recruit from abroad. Fees are tightly regulated to protect foreign workers.

Work Visa Process & Cost Breakdown

Work visa processing requires approval, residency permits, and medical tests. Fees include LMRA charges, medical exams, visa stamps, and third-party service costs.

Emerging Trends in Bahrain’s Labour Market

Bahrain’s labour market is evolving with flexible working models, including gig and remote work, supported by new legal frameworks and digital HR platforms. Employers are also embracing upskilling initiatives, leveraging government grants and technologies to foster talent development and adapt to a knowledge-based economy.

Rise of Flexible, Gig, and Remote Work

The legal framework now allows gig and remote work models, requiring agreements, remote-monitoring policies, and insurance arrangements.

Digital Platforms & HR Innovation

Employment gov apps and digital HR portals help automate payroll, track leave, issue certificates, and manage compliance.

Focus on Skill Development & Upskilling

2025 reforms encourage employers to invest in employee training via Tamkeen grants, encouraging lifelong learning and a knowledge‑based economy.

HR Best Practices for Employers in 2025

Employers in 2025 should focus on clear employment contracts, transparent payroll systems, and regular employee feedback. Embracing remote work policies, ensuring data privacy, and promoting diversity and inclusion will help build compliant, productive, and engaging workplaces. Following these HR best practices improves employee trust and reduces legal risks.

Policies for Contract Management

Employers should keep binders of signed contracts, salary records, leave logs, and termination documents aligned with law.

Data Protection and Employee Privacy

Combined enforcement of Bahrain’s Data Protection Law and Labour Law ensures secure retention of employee data, onboarding, and monitoring.

Handling Employee Feedback and Engagement

Establish formal grievance channels, regular feedback processes, and fair reviews to prevent labor disputes.

Diversity, Equity & Inclusion (DEI)

Businesses are encouraged to adopt DEI policies, fair hiring practices, and anti-harassment training to foster inclusive workplaces.

Conclusion

Bahrain’s employment and labour laws for 2025 balance worker protections with business flexibility. From modernized remote-work protocols to robust social security, the legal environment supports inclusive growth and sustainable employment. Employers who learn these laws benefit from a compliant workplace, improved talent retention, and a strong reputation.

For anyone expanding or hiring in Bahrain, expert guidance helps simplify licensing, contracts, national hiring rules, and compliance. Our Business Setup Services in Bahrain are designed to guide you through the legal and HR landscape—helping establish your presence securely and sustainably.

FAQs

What is the standard workweek in Bahrain?

Standard working hours are 40–45 hours per week; overtime must be paid at 1.25x or more if on a rest day.

Is there a national minimum wage in Bahrain?

There’s no universal minimum wage. However, Bahraini nationals in the public sector earn at least BHD 300, while private-sector salaries are market-determined.

How much annual leave am I entitled to?

After one year, all employees are entitled to 30 calendar days of paid annual leave.

How is end-of-service gratuity calculated?

Based on contract terms and duration of service. It’s outlined in Labor Law provisions and compensates years worked.

What protections exist for remote and gig workers?

2025 updates regulate remote and gigwork via written agreements, insurance coverage, and wage calculations, similar to office employment.

Are Bahraini employees prioritized over expats?

Yes. Bahrainization policies require private companies to meet national hiring quotas, particularly in sectors like banking and hospitality.

Is overtime mandatory?

No. Overtime must be consented to and compensated. Refusal by employees in non-essential roles is within legal rights.

How are labour disputes resolved?

First through conciliation by the Ministry, and if unresolved, through Labor Courts. Written complaints initiate the process.

What happens if an employer fails to comply?

Employers face fines, legal action, license suspension, and damage to brand reputation. Compliance is taken seriously.

Can I change my labor contract terms?

Yes, but any amendments must be mutual, written, and updated with relevant authorities to be legally valid.