Bahrainisation: target rates, LMRA work permits and the parallel fee (2026)
Bahrain has no single national quota: the LMRA sets a Bahrainisation target rate for each business activity and size band, for example 35% for computer programming from 10 workers and 40% for legal and accounting firms. A business below its target can still get expatriate work permits by paying a parallel fee of BHD 500 for a two-year permit or BHD 250 for a one-year permit, on top of the BHD 200 or BHD 100 permit fee.
Bahrainisation and work permits in Bahrain
- LMRA permit applications and renewals
- Target rate checked per permit
- Parallel fee quoted where short
Bahrain sets fixed settlement amounts for work permit offences
What happened
Decree-Law No. 12 of 2024, issued on 27 August 2024, replaced Article 40 of the Labour Market Regulation Law. An employer caught using an expatriate without a work permit, or against the permit's terms, can settle by paying BHD 500, or BHD 1,000 for a repeat. Using a worker within 30 days after a permit expires settles at BHD 100, 200 or 300, depending on how late it is caught.
What it means for you
Settling ends the criminal case once the full amount is paid within 14 working days of the offer. Renewing permits before they expire avoids the charge altogether.
Source: Legislation and Legal Opinion Commission. We check this page every week. Last checked .
Bahrainisation is Bahrain's policy of raising the employment of Bahraini nationals in the private sector. It works through the LMRA's Bahrainisation target rates: a minimum share of Bahraini staff set by an establishment's approved activities and its size. The rate matters because the LMRA, which issues every expatriate work permit under Law No. 19 of 2006, checks it when permits are issued or renewed. The Parallel Bahrainisation System lets a business below its rate buy permits at a higher fee instead of being refused.
What is the Bahrainisation target rate?
It is the minimum share of Bahraini employees the LMRA expects, set by the establishment's approved activity and its number of workers. The LMRA publishes the rates in a lookup table by activity, with bands from 6 to 9 workers up to 500 or more. Employers can check their own position through the LMRA's Bahrainisation Target Rate lookup.
In the LMRA table, computer programming is 0% for an establishment with 6 to 9 workers and 35% from 10 workers. Legal activities and accounting firms are 40% in every band shown, management consultancy is 35%, and food and beverage service is 8% from 10 workers. Activities in oil and gas extraction run to 50%. The table also links the number of permits to the activity and the size of the business.
What happens if a business is below its Bahrainisation target?
It can still get expatriate work permits through the Parallel Bahrainisation System by paying an extra fee per permit outside the required ratio: BHD 500 for a two-year permit or BHD 250 for a one-year permit. Using the system is optional. The alternative is to hire Bahrainis and meet the ratio.
The parallel system has applied to new permits since 2 May 2016 and to renewals since 2 May 2017. At renewal, the LMRA system checks whether the establishment meets its ratio and adds the parallel fee only where it does not. No occupation is excluded from the parallel system, and the monthly fees are unchanged by it.
How much does an LMRA work permit cost?
BHD 200 for a two-year permit or BHD 100 for a one-year permit, whether it is new, a renewal or a transfer. Medical fees are charged separately, and monthly fees also apply. The parallel fee, where it applies, is added on top.
Applications are made online through the LMRA's Expat Management System or at an LMRA service counter. The requirements for a parallel permit are the same as for a normal permit. Payment can be made electronically or at the banks the LMRA names.
What does an expatriate permit cost a business below target? A worked example
Our arithmetic: a business below its target rate that hires one expatriate on a two-year permit pays BHD 200 for the permit plus BHD 500 parallel fee, BHD 700 before medical and monthly fees. On a one-year permit it is BHD 100 plus BHD 250, so BHD 350.
A business at or above its target pays only the BHD 200 or BHD 100 permit fee. The figures come from the LMRA's published fee table for the Parallel Bahrainisation System. They do not include the monthly fees or medical fees, which the LMRA charges separately.
Can a business use an expatriate who works for another employer?
Yes, for 90 days, through the LMRA Secondment Service under Resolution No. 2 of 2026. The worker, the current employer and the applying employer must all approve, and both employers are jointly liable for the worker's rights. The fee is BHD 5, plus a BHD 62.5 parallel fee if the applying employer's target rate is lower.
The parallel fee covers the whole 90 days and is not refunded if the secondment is cancelled early. The worker may only do an occupation they are licensed for. The service does not cover domestic workers or businesses going through an ownership transfer, and a secondment ends if the work permit is cancelled or expires. The fee must be paid within 30 days.
What happens if an expatriate works without a valid permit?
It is an offence. Article 23(b) of Law No. 19 of 2006 bars an employer from using a foreign worker without a work permit, or against the law or the permit's terms. Since Decree-Law No. 12 of 2024 the employer can settle at BHD 500, or BHD 1,000 for a repeat.
Where a worker is used within 30 days after the permit expired, the settlement is BHD 100 if caught within 10 days, BHD 200 between 10 and 20 days, and BHD 300 between 20 and 30 days. After 30 days, settlement costs the minimum fine for the offence. The employer must also check the worker's nationality before hiring.
Whose Bahrainisation rate counts when a worker is hired?
The rate of the establishment that holds the work permit. The LMRA checks the target against that establishment's approved activities and size, so the employer named on the permit carries the ratio and any parallel fee.
Under Article 24 of Law No. 19 of 2006, a work permit is issued to the employer for a named worker and cannot be passed to anyone else. That is why the secondment service needs both employers' consent and compares their two target rates.
Key figures
| Detail | Value |
|---|---|
| Target rate basis | Set by the establishment's approved activity and its size band, from 6 to 9 workers up to 500 or more. (source) |
| Example target rates | Computer programming 0% (6 to 9 workers) and 35% (10 or more); legal and accounting 40%; management consultancy 35%. (source) |
| Work permit fee | BHD 200 for two years or BHD 100 for one year, for a new, renewed or transferred permit. Medical fees are separate. (source) |
| Parallel Bahrainisation fee | Optional extra fee per permit outside the required ratio: BHD 500 (two years) or BHD 250 (one year). (source) |
| Parallel system start | New permits from 2 May 2016; renewals from 2 May 2017. (source) |
| Secondment | 90 days with the approval of the worker and both employers, who share liability. Fee BHD 5, plus BHD 62.5 if the applying employer's target rate is lower. (source) |
| Employing without a permit | Prohibited for the employer, as is using a worker against the law or the permit's terms. (source) |
| Settlement amounts | BHD 500 (BHD 1,000 on repeat) for the Article 23(b) offence; BHD 100, 200 or 300 for use within 30 days after a permit expires. (source) |
| Permit is personal | A work permit is issued to the employer for a named worker and cannot be transferred to another party. (source) |
Frequently asked questions
Is there a single Bahrainisation percentage for all companies?
No. The LMRA sets a separate target rate for each activity and size band. For example, the table sets 0% for many establishments with 6 to 9 workers and 50% for oil and gas extraction from 10 workers.
Can I hire expatriates in Bahrain if I have no Bahraini staff?
Yes, if you accept the Parallel Bahrainisation fee on each permit outside your required ratio: BHD 500 for a two-year permit or BHD 250 for a one-year permit, on top of the normal fee.
Do Bahrainisation fees change the monthly work permit fees?
No. The LMRA says monthly fees apply as normal to permits issued through the Parallel Bahrainisation System.
What is the fine for employing someone on an expired permit in Bahrain?
If caught within 30 days of expiry, the employer can settle at BHD 100, 200 or 300 depending on how many days have passed. After 30 days the settlement is the minimum fine for the offence.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
