Earning Insights: E5 Salary In Bahrain

The average monthly salary in Bahrain ranges from 450 to 4,000 BHD, with the median being around 1,500 BHD. The Bahraini Dinar is the second-highest-valued currency unit globally. The average salary in Bahrain is competitive compared to neighbouring Gulf countries, which can be attributed to the country's economic diversification efforts. The highest-paying occupations in Bahrain include CEOs, doctors, surgeons, banking and finance managers, lawyers, engineering managers, IT and telecom directors, aircraft pilots, marketing directors, human resources directors, and real estate development managers.

Average monthly salary in Bahrain

The average monthly salary in Bahrain varies depending on factors such as industry, job role, and qualifications. The average monthly salary ranges from 396 BHD to 4,000 BHD, with a median of around 1,500 BHD. The wide range is due to the diverse range of occupations and sectors in Bahrain, with some industries, such as finance, IT, and engineering, offering higher wages due to the specialised skills required.

The average wage in Bahrain was 866 BHD per month in the second quarter of 2023, with a maximum of 913 BHD and a minimum of 402 BHD. The minimum wage in Bahrain is 400 BHD per month for Bahraini citizens, with non-Bahraini workers also subject to minimum wage regulations, which may vary depending on their contracts and the sector they work in.

The gross salary range in Bahrain is typically from 396 BHD to 1,513 BHD, with the actual maximum salary being higher. Salaries can vary drastically among different job categories, with top-paying jobs requiring specialised skills, advanced education, and extensive experience. Some of the highest-paying occupations in Bahrain include CEOs, doctors, banking managers, lawyers, engineering managers, IT directors, and marketing directors.

Employment packages in Bahrain often include benefits such as housing, transport, education, and health insurance, which augment the total compensation package. Expatriates often earn higher salaries than locals due to the global demand for their skills, but Bahrain has been taking measures to balance this through initiatives to increase the employment of nationals in the private sector.

Median average monthly salary in Bahrain

The median average monthly salary in Bahrain varies across sources. According to TimeCamp, the median average monthly salary in Bahrain is around 1,500 BHD. However, another source, Take-Profit.org, states that the average wage in Bahrain decreased to 866 BHD per month in the second quarter of 2023, with a maximum average wage of 913 BHD per month and a minimum of 402 BHD per month.

It's important to note that salaries in Bahrain can vary significantly depending on various factors such as industry, job role, qualifications, level of expertise, type of occupation, and sector. The salary range for employees in Bahrain generally falls between 396 BHD and 4,000 BHD, with some sources citing even lower salaries.

The cost of living, benefits provided by employers, and government policies also influence the net income and purchasing power of employees in Bahrain. Additionally, expatriates often earn higher salaries than local employees, but Bahrain has been taking measures to address this disparity through initiatives promoting the employment of nationals in the private sector.

Cost of living in Bahrain

The cost of living in Bahrain is, on average, 26.2% lower than in the United States. Rent in Bahrain is, on average, 51.3% lower than in the United States.

The cost of living in Manama, Bahrain's capital, is 53.2% less expensive than in New York (without rent). Rent in Manama is, on average, 80.8% lower than in New York.

Family of Four:

• $3,067.8 or 1,156.4BHD according to one source.
• 1,360 Dinar according to another source.

Single Person:

• $864.7 or 325.9BHD according to one source.
• 667 Dinar according to another source.

These estimates may vary depending on location and lifestyle choices.

Employment packages in Bahrain

Bahrain is a high-income economy, with a large workforce needed to support its growing economy. The country has a comprehensive employment law framework that ensures equal rights for all workers. As Bahrain's economy continues to develop, its labour laws also evolve.

Wages

There is no minimum wage requirement for private-sector employers in Bahrain. However, the minimum monthly wage for Bahraini nationals employed by the government is 300 BHD. The National Employment and Training Scheme sets the minimum wage for public employees based on their educational qualifications: 300 BHD per month for a high school diploma, 380 BHD per month for a diploma, and 450 BHD per month for a university degree.

While there are no mandatory deductions from the wages of expatriates, employers can make deductions from Bahraini employees' wages for social security contributions, income tax, or court-ordered payments.

Bonuses and Overtime

Bahrain labour law does not oblige employers to provide bonuses to their employees. However, many private-sector employers offer performance-based or annual bonuses as part of their compensation packages. These bonuses can motivate employees and contribute to the company's success.

Employees in Bahrain are entitled to overtime pay for working beyond the standard 48-hour work week. The overtime pay rate is 125% of the regular hourly wage for daytime work on regular days and 150% for work on weekly rest days, public holidays, or nights.

Leaves and Breaks

The standard workweek in Bahrain is 48 hours, typically spread over six days (Sunday to Thursday), with Friday and Saturday as the weekend. Employees are entitled to a one-hour break for every six hours worked, and the maximum daily working hours should not exceed ten. During Ramadan, the workweek is reduced to 36 hours to accommodate fasting employees.

Employees in Bahrain are entitled to various types of leave, including annual leave, sick leave, maternity leave, Hajj leave, bereavement leave, educational leave, and contingency leave.

Contracts and Termination

Bahrain's employment law recognises permanent contracts, fixed-term contracts, part-time contracts, and special contracts for independent contractors. During the probationary period of up to six months, either the employer or the employee can terminate the contract with one day's notice.

The notice period for termination after the probationary period depends on the length of service. For employees with less than three months of service, the notice period is one month. For those employed between three months and one year, the notice period is two months. For employees with more than one year of service, the notice period is three months.

Employees terminated without a valid reason are entitled to severance pay, known as end-of-service gratuity, in addition to their regular termination benefits. This gratuity is calculated based on the length of service and final basic salary.

Other Benefits

Bahrain does not impose personal income tax on either expatriates or Bahraini nationals. Additionally, the country offers a unique work permit called the Flexi Permit, which allows expatriates to work for multiple employers without being tied to a single sponsor.

Bahrain's economic diversification efforts

Bahrain's economy is heavily dependent on oil and gas, with petroleum being the country's most exported product. Oil and gas comprise 85% of Bahraini budget revenues, and lower world energy prices have generated significant budget deficits. For instance, in 2017, budget deficits amounted to about 10% of GDP.

Bahrain has been working to diversify its economy since the late 20th century, investing in the banking and tourism sectors. The country's capital, Manama, is home to many large financial institutions. Bahrain's finance industry is very successful, and in 2008, it was named the world's fastest-growing financial center by the City of London's Global Financial Centres Index.

Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by the demand for oil. Bahrain has the largest concentration of Islamic finance institutions in the Gulf Cooperation Council (GCC) region, and it hosts the industry's global oversight body, the Accounting and Auditing Organisation for Islamic Institutions.

In addition to finance, Bahrain has also diversified into other sectors, including manufacturing, refining, tourism, trade, and services. The country has a successful heavy industry sector, including Aluminum Bahrain (ALBA), which operates the largest aluminum smelter in the world.

To further its economic diversification efforts, Bahrain has implemented various policies and initiatives. In 2005, Bahrain became the first Persian Gulf state to sign a free trade agreement with the United States. The country has also undertaken a massive privatization program, selling off key government assets and allowing the private sector to take control of utilities, banks, financial services, and telecommunications.

Bahrain's Economic Recovery Plan, launched in October 2021, aims to help the country adapt to post-pandemic economic realities and achieve its long-term development goals. The plan focuses on several key areas, including the development of strategic priority sectors, simplification of commercial procedures, and the creation of employment opportunities for Bahrainis.

The Bahrain Economic Vision 2030, formulated in collaboration with local and international entities, is another key initiative. This plan emphasizes the diversification of the economy away from dependence on hydrocarbons revenue by developing high-productivity, high-value sectors.

Despite these efforts, Bahrain's economy is still closely tied to oil prices and revenues. The country's economic stability is crucial for its political stability, and support from Saudi Arabia, such as oil deliveries from the joint Abu Saafa field and financial transfers, is essential.

In summary, Bahrain has made significant strides in economic diversification, particularly in the finance, manufacturing, and tourism sectors. However, the country continues to face challenges due to its reliance on oil and the volatility of energy markets.

Frequently asked questions