Bahrain Rejects Salary-Linked Work Permit Fees
The Bahraini government has officially declined a parliamentary proposal regarding Bahrain work permit fees, rejecting a plan to tie them to expatriate salaries. The decision ensures that the existing fixed-fee structure remains in place for companies hiring foreign staff outside of mandatory Bahrainisation quotas.
The Rejected Proposal
The proposed measure aimed to replace the current flat fee with a progressive charge based on an employee's income. Under this plan, employers would have faced fees ranging from BD500 to BD2,500 for hiring expatriates who fall outside established Bahrainisation targets. This would have resulted in significantly higher costs for companies hiring high-salaried foreign professionals.
Reasons for the Decision
Government officials cited several practical and administrative challenges that led to the rejection of the salary-linked model. Key concerns included:
- Verification Difficulties: The difficulty of reliably verifying average wages during the initial application stage.
- Risk of Manipulation: The potential for employers to manipulate salary data to reduce their fee obligations.
- Bureaucratic Delays: The risk of increased administrative complexity and delays in processing work permit applications.
Authorities noted that the current fixed-fee system is the most efficient method for the electronic application of Bahrainisation rules across local establishments.
Current Fee Structure and Bahrainisation
With the proposal rejected, the existing cost structure remains unchanged. Companies that do not meet their prescribed Bahrainisation targets—which mandate specific employment quotas for Bahraini nationals—must continue to pay:
- BD500 for a two-year work permit.
- BD250 for a one-year work permit.
These parallel fees are distinct from standard work permit fees, health fees, and monthly contributions, which operate on separate schedules. It is also noted that gradual increases for other fees are slated to begin in 2026.
The funds collected through these specific fees are dedicated to national training and employment programs intended to support the development of Bahraini citizens in the workforce.