Cost of hiring a Bahraini versus parallel fee
Is it cheaper to pay BHD 500 or hire one Bahraini?
The situation
The parallel fee is BHD 500 per two year permit; a Bahraini hire costs salary plus SIO contributions.
The law
- Cabinet Resolution No. 27 of 2016 as amended by Resolution No. 2 of 2019 (Parallel Bahrainisation): Employers below their Bahrainisation target can still get permits by paying BHD 500 (two years) or BHD 250 (one year) extra per permit
- SIO contribution rates (2025 secondary summaries): Bahraini employee 8% (7% pension plus 1% unemployment); employer about 17% in 2025 rising yearly; expatriates employer 3% and employee 1%
What it means for you
A Bahraini on BHD 600 a month costs about BHD 7,200 salary plus employer SIO each year. If one Bahraini lifts you above target for several permits, hiring can still pay off.
What to do
- Compute fee saving.
- Compute hire cost.
- Consider skills.
- Decide.
We can do this for youBahrainisation target check and parallel Bahrainisation planning: BHD 200