4 changes employers in Bahrain should know about

Private Health Insurance

Mandatory Health Insurance Obligations: The Ministry of Health has verbally confirmed that in 2025, all private sector employers in Bahrain are required to provide mandatory health insurance for their employees. We are currently awaiting the official decision effecting the mandatory health insurance law that was issued in 2018. We will ensure to share a subsequent client alert once the official decision is released. In the meantime, employers in Bahrain should monitor the Ministry of Health’s Sehati portal to compliance by securing appropriate health insurance coverage for their workforce to avoid potential penalties.

Bahrainisation

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 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 2024. Employers exceeding this cap could face fines of up to 20% of the foreign worker’s salary.

Visa Regulations

Increase in Visa Fees: Under Decree No. (119) of 2024, issued by Minister of Interior General Sheikh Rashid bin Abdullah Al Khalifa, 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% hike. 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. If approved, this law will amend the Immigration and Residence Act 1965 to include a clause stating: “It shall not, under any circumstances, be permissible to convert a foreigner’s entry visa to Bahrain into a work residence permit.” This proposed change has faced strong opposition from a parliamentary committee but remains under consideration. In early 2024, this law was implemented however received heavy backlash from entities in Bahrain and was therefore repealed. Parliament is currently discussing re-introducing this law to promote Bahrainisation.

Employers in Bahrain should closely monitor these legislative developments and adjust their recruitment and compliance strategies accordingly to ensure adherence to the new regulations. We remain available should any entity wish to discuss their HR processes as effective in Bahrain.

For further information, please contact Rad El Treki (r.eltreki@tamimi.com) or Shouq Al Majali (s.almajali@tamimi.com)