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Remuneration structure in Bahrain

Cheryl Moderator

Member since 15 October 2018

CherylModerator22 October 2025 06:02:11

14957

Hello everyone,

Understanding the remuneration structure when living and working in Bahrain will help you better navigate professional life. In order to help other expats and soon-to-be expats grasp everything from gross pay to net pay, we invite you to share your experience.

How is your remuneration structured in Bahrain: basic salary, commissions, 13th month, etc.?

What are the common or mandatory allowances included such as transports, health insurance, pension contributions…?

What are the taxes and social contributions to be considered, especially if deduction is made at source?

What is the regular salary payment frequency in Bahrain: monthly, bi-montlhy, weekly…?

Is it acceptable or common to negotiate salary or benefits?

Are there any specific differences in remuneration structure between expats and locals?

Share your insights and experience.

Thank you for your contribution.

Cheryl
Expat.com Team

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sajadrbanday New member

Member since 27 August 2011

sajadrbandayNew member30 October 2025 05:47:40

8

Most employment packages in Bahrain follow a “total package” structure, which includes several components:

Basic Salary:

This forms the core of the salary, usually 60–70% of the total package. It’s the basis for calculating end-of-service benefits and leave salary.

Allowances:

Employers often include a range of allowances as part of the package:

Housing Allowance: Typically 20–30% of the total salary, depending on grade and marital status.

Transportation Allowance: Usually 5–10% of the salary or a company car.

Utility Allowance: In some cases, for electricity or water bills.

Mobile/Communication Allowance: For employees in mid to senior positions.

Education Allowance: Offered to expatriates with school-going children (more common in senior roles).

Other Components:

Commissions/Incentives: Common in sales and business development roles.

Bonus: Annual performance bonuses are at the employer’s discretion, not mandated by law.

13th-Month Pay: Not common in Bahrain. Some multinational firms may offer it as part of global policy.

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