Your employees will typically care most about two aspects of employment — compensation and benefits. When you're expanding to a new country such as Bahrain, you need to make sure you're providing...
Read MoreYour employees will typically care most about two aspects of employment — compensation and benefits. When you're expanding to a new country such as Bahrain, you need to make sure you're providing the right compensation and benefits that meet Bahrain's laws and satisfy your employees. Globalization Partners will take care of Bahrain compensation and benefits outsourcing for you so that you can stay compliant and focus on growing a new business location.
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Your employees will typically care most about two aspects of employment — compensation and benefits. When you’re expanding to a new country such as Bahrain, you need to make sure you’re providing the right compensation and benefits that meet Bahrain’s laws and satisfy your employees. Globalization Partners will take care of Bahrain compensation and benefits outsourcing for you so that you can stay compliant and focus on growing a new business location.
Bahrain’s compensation laws do not dictate a minimum wage, but the median salary is 1,534 BHD per month. However, 25% of the populations earns less than 781 BHD per month, while 75% make more than 781 BHD each month. Keep in mind that the country does not have a personal income tax, meaning net salaries offered to employees will typically look higher than in other countries.
Contract workers are also entitled to an “indemnity” at the end of their contract period. This amount is usually based on basic salary without any bonuses and serves as a “thank you” to expatriate workers serving Bahrain. It typically equals between 15 and 20 days of pay for an employee’s first three years of work then a month’s salary for each year of work after that.
Your Bahrain benefit management plan must include statutory benefits guaranteed to all employees, including time off for the nine holidays celebrated in the country, as well as a minimum of 30 working days of paid annual leave. While the typical workweek is Sunday to Thursday, overtime should be paid at an additional 25% for anyone who works on weekend days and holidays.
Another guaranteed benefit is healthcare. Bahrain operates under a public/private healthcare system where citizens receive either free or heavily subsidized care. Foreign nationals can access the same plans but will have to pay for care and typically purchase their own health insurance.
If you do not choose Bahrain benefit outsourcing services, you’ll need to source your own benefit management plan that makes sense for your company. Then, you’ll have to disperse those benefits to all employees. In addition to the guaranteed benefits in Bahrain, you also need to give out additional benefits that can increase your retention rate and keep employees happy. Some common additions in Bahrain include:
The biggest restriction regarding benefits and compensation in Bahrain is that you must set up a subsidiary before you give out benefits. However, Bahrain compensation and benefits outsourcing through Globalization Partners can simplify the process. Instead of establishing a subsidiary before hiring employees and starting work, you can use our already established subsidiary in Bahrain. We’ll hire employees to work on your behalf, handle all Bahrain benefit and compensation outsourcing, and ensure you stay compliant.
Your employee benefits program is a key aspect of your international growth strategy. With a successful program, you’ll be able to competitively recruit and hire in-country professionals as well as deepen engagement and retention with local employees. Compliance, market standards, and your company’s budget are all vital factors in building an effective plan in Bahrain, and you’ll need trusted resources to help find the right balance.
At Globalization Partners, we offer the expertise and solutions you need to craft a strategy for benefits distribution that can help your company stand out.
Your legal responsibilities as an employer are one aspect of international business management, but your appreciation for your employees will tell prospective hires the most about who you are as a company. By offering competitive benefits, you can demonstrate that you truly value your workers’ contributions. When you set your employees up for success, you’ll both advance your company’s growth and deepen employee engagement.
You can customize the fringe benefits you offer to be of most value to your employees. From resources and support in a crisis to practical assistance for day-to-day operations, the benefits you provide can go a long way toward building trusted relationships with your team members. Some popular supplemental offerings in Bahrain include:
Before you consider fringe benefits, you’ll need to make sure you have the requirements covered. Employers in Bahrain must provide the following benefits at a minimum:
The best options for benefits offerings will look slightly different in every country, but you can follow some fundamental principles to help you plan anywhere. Consider these three stages as you create your benefits program.
As you begin planning, you’ll need to identify your program goals and the scope of services you can provide. Discuss your company’s responsibilities with stakeholders, evaluate your available resources, and determine what you can afford to spend. Setting aside a percentage of your revenue can make it easier to scale your offerings as your company grows. Knowing your budget and priorities will help you create a program that is sustainable in the long term.
Your next step is to evaluate what your employees will need from your program. You might conduct interviews or send questionnaires to local workers to obtain firsthand information on their essential requirements. During this stage, you can also research the offerings of other companies in your industry and location.
Having identified your priorities, budget, and critical employee needs, you can build your benefits plan. You’ll want to ensure you include cost containment features, outsourcing costs, and employee contributions in your benefits administration calculations.
Benefits administration costs can vary widely from one company to the next. Knowing your budget will be more valuable than assessing an average price for employee benefits in Bahrain.
Some benefits calculations are outlined in Bahrain’s labor laws. You must provide full pay during maternity leave and annual leave. Sick leave rates should be calculated as follows:
To calculate supplemental benefits, you can use your research on comparable industry offerings to help you set competitive rates.
The country has no income tax and no tax deductions. Consequently, you will not need to withhold any taxes from your employees’ benefits compensation.
The National Health Insurance Scheme provides coverage for all citizens of the country. However, the 2018 Health Insurance Law No. 23 stipulates that all expatriates and visitors to the country must also have health insurance coverage. Expats must receive employer-sponsored insurance, so you’ll need to explore private medical insurance options for any nonnational workers on your team.
Globalization Partners is here to help you manage company growth internationally. Request a proposal today.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
