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

  1. Compute fee saving.
  2. Compute hire cost.
  3. Consider skills.
  4. Decide.

We can do this for youBahrainisation target check and parallel Bahrainisation planning: BHD 200

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