The Bahraini government has taken a number of actions recently that directly affect employers with a presence in Bahrain.
Private sector health insurance
The Ministry of Health has confirmed that in 2025, all private sector employers in Bahrain are required to provide mandatory health insurance for their employees. The Mandatory Health Insurance Law provides that the provisions of the law will be applicable upon the issuance of an official decision to this effect. Bahrain employers should therefore monitor the Ministry of Health's Sehati portal to ensure compliance once the Law has come into effect. Employers in Bahrain can ensure compliance by securing appropriate health insurance coverage with a Bahrain–based insurance provider for their workforce to avoid potential penalties.
Bahrainisation targets
In line with Bahrain's national employment goals, the 'Bahrainisation' targets for private sector employers are being reinforced. A draft law currently under review by Bahrain's Council of Representatives proposes that private-sector commercial establishments limit foreign workers to 30% of their total workforce. This initiative aims to increase the employment of Bahraini nationals, with a target of employing 20,000 Bahrainis and training 10,000 by the end of 2025. Employers exceeding this cap of 30% could face fines of up to 20% of the salary of the foreign worker employed instead of a Bahraini.
Increase in visa fees
Under a recent Decree issued by the Minister of Interior, the fee for converting a visit visa to a work visa under the same sponsor has increased from BHD 60 to BHD 250, representing a 400% rise. This new fee structure, effective from 20 December 2024, also includes fees for converting a visit visa to a family reunification visa and for converting a family reunification visa to a work visa, both set at BHD 250. Additionally, the fee will be doubled for entities that do not meet the Bahrainisation quota.
Draft law on visit visa conversion
A draft law currently under discussion in Bahrain's Parliament aims to prohibit the conversion of visit visas into work permits for foreigners. This proposed change has faced strong opposition from a parliamentary committee but remains under consideration. In early 2024, this law was implemented, but it received heavy backlash from employers in Bahrain and was therefore repealed. Parliament is currently discussing re-introducing this law to promote Bahrainisation.
Takeaway for Employers
Employers in Bahrain should closely monitor these legislative developments and adjust their recruitment, compensation and compliance strategies accordingly to ensure adherence to the new regulations.
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