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Population
Bahrain has a population of approximately 1.5 million people (as of 2023). A significant portion of the population consists of foreign workers, particularly from Asia and the Middle East.
Capital
The capital of Bahrain is Manama, a vibrant and modern city that serves as the economic and cultural center of the country.
Economic Strength
Bahrain possesses one of the most diversified economies in the Persian Gulf. Historically, the economy was heavily reliant on oil, but in recent years, the focus has shifted to the banking sector, finance, tourism, and construction. Bahrain is known as a financial hub, especially for Islamic banking. The country’s GDP is around USD 40 billion, with a per capita GDP of approximately USD 24,000.
Culture
Bahrain’s culture is strongly influenced by the Arab world, but due to the large number of expatriates, there are also significant influences from South and Southeast Asia, as well as Western countries. Traditional festivals like Ramadan and Eid are widely celebrated, and local arts and music, particularly Arabic music and craftsmanship, play an important role in the cultural life of Bahrain.
Currency
The currency of Bahrain is the Bahraini Dinar (BHD), one of the strongest currencies in the world. One BHD is divided into 1,000 fils.
Health Insurance and Social Security System
Bahrain has a well-developed social security system. The government provides health insurance and pension benefits for citizens and registered employees. Employers are required to contribute to both pension and health insurance schemes. Expatriates typically need private health insurance or coverage through their employer, as the public system primarily serves Bahraini nationals.
Employer Costs
Employer costs in Bahrain include social security contributions, health insurance for expatriates, and other fringe benefits. Employers contribute about 12% for local employees and 3% for foreign employees toward social security. Additionally, employers may provide other voluntary benefits such as housing or transportation allowances.
Salary and Bonuses
Salaries in Bahrain vary widely depending on the industry and qualifications. Average salaries are typically higher than in many other countries in the region, especially in the financial sector. Bonuses are common and are often paid at the end of the year or upon project completion.
Payroll
Employers are required to provide employees with monthly payslips, detailing the base salary, allowances, bonuses, and any deductions, including social security contributions. The Bahraini Dinar is stable, so payroll calculations usually do not need to account for currency fluctuations.
Public Holidays
Bahrain has several public holidays, both religious and national, including:
- New Year’s Day (January 1)
- National Day (December 16)
- Eid al-Fitr and Eid al-Adha (Islamic holidays, whose dates vary according to the lunar calendar)
- Ashura (Islamic commemoration)
Additional holidays may vary slightly from year to year.
Working Hours
The standard working hours in Bahrain are 48 hours per week, with a workday of 8 hours. In some sectors, such as finance, working hours are shorter. During Ramadan, working hours for Muslim employees are reduced to 6 hours per day.
Vacation
Employees are entitled to 30 days of paid annual leave. There are also additional leave days for special occasions such as weddings or religious observances. Employees must have worked for at least one year to be eligible for the full vacation entitlement.
Sick Leave
In case of illness, employees are entitled to sick leave. The first 15 days of sick leave are fully paid, and for the next 15 days, they receive 50% of their salary. Employees are generally required to provide a medical certificate to qualify for sick leave.
Termination/Severance
Bahraini labor law requires both employees and employers to observe a notice period before terminating an employment contract. The standard notice period is usually 30 days but may be longer depending on the contract. Employees who are dismissed without fault are entitled to severance pay, which is based on the length of service. Severance typically amounts to half a month’s salary for each of the first three years of employment, and one full month’s salary for each additional year thereafter.