GOSI Contributions
While Bahrain has no personal income tax, employers face significant social insurance obligations through the General Organisation for Social Insurance (GOSI).
Wage Protection System
The WPS is a mandatory electronic salary transfer system. All employers must pay wages through approved banking channels, ensuring transparency and compliance.
✅ WPS Requirements
- All salaries via bank transfer
- Monthly submission to LMRA
- Match with employment contracts
- Deadline: 10th of following month
⚠️ Non-Compliance Penalties
- BD 200–500 per violation
- Work permit suspension
- License non-renewal risk
- LMRA blacklisting
End-of-Service Benefits
Employees with 1+ years of service are entitled to end-of-service indemnity: half a month's salary per year for the first 3 years, and one month per year thereafter. This is a real cost employers must budget for.