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Home›Gratuity Calculator›Bahrain
Bahrain · End-of-service · Data research

Bahrain Gratuity Calculator: the leaving indemnity, and who pays it since 2024

Bahrain's leaving indemnity is half a month's wage per year for the first three years and a month per year after, paid whether you resign or are let go. What changed in March 2024 is who pays: employers now fund it monthly through the Social Insurance Organization (SIO), and you claim it from the SIO for service from that date.

Researched by Nikhil ShrivastavaReviewed by Pending independent reviewLaw last verified 23 October 2026Methodology · Report an error
0.5 → 1 monthper year: years 1–3, then every year after
No cutfor resignation; no cap; no minimum service
4.2% / 8.4%monthly employer contribution to SIO, years 1–3 / after
1 Mar 2024since when the SIO pays expatriates' indemnity

Calculate your Bahrain gratuity

Basic wage plus any social allowance (Article 47). Commission or piece-rate workers use the average of the last three months.

Estimated end-of-service gratuityBHD 3,169.178≈ ₹8,08,457 · 6.338 months of wage

How this number was calculated

  1. Service counted2,861 days − 0 unpaid = 2,861 days (7 yrs 10 mths 6 days) = 7.838 years
  2. years 0–30.5 month × 3 yrs = 1.5 months
  3. years 3–7.8381 month × 4.838 yrs = 4.838 months
  4. Full awardBHD 500.000 × 6.338 = BHD 3,169.178

Estimate of the legal minimum only. Contracts and company policies can pay more, employers may deduct amounts you owe, and free-zone or government employers can follow different rules. Not legal advice.

Bahrain gratuity formula and who qualifies

Indemnity = wage × (0.5 × years up to 3 + 1 × years after 3)

Worked example: BHD 500.000 a month, 7½ years, contract ended by the employer

3.0 years × 0.50 month + 4.5 years × 1.00 month = 6.000 months of wage. BHD 500.000 × 6.000 = BHD 3,000.000.

How the Bahraini rules treat each situation
SituationMinimum serviceWhat is paid
Any end of contract, including resignationNoneFull indemnity, pro rata
Service from 1 March 2024—Claimed from the SIO
Service before 1 March 2024—Still owed by the employer under the Labour Law
Bahraini nationals—Covered by social insurance instead

Claim vs reality: did the SIO scheme change how much indemnity you get?

Finding: no, it changed who holds the money. The Article 116 amount is the same. Employers pay 4.2% of wage a month for years 1–3 and 8.4% after, which is half a month and one month a year spread over twelve months. The difference is protection: the money sits with the SIO, so it no longer depends on the employer paying at exit.

Months of wage paid by years of service: Bahrain vs UAE (law minimum)
ServiceBahrainUAE (basic)
1 year0.500.70
2 years1.001.40
3 years1.502.10
5 years3.503.50
7 years5.505.50
10 years8.508.50
15 years13.5013.50
20 years18.5018.50
25 years23.5023.50

Calculated by KalQLater from the articles cited below. UAE figures use Article 51 of Federal Decree-Law No. 33 of 2021. Wage definitions differ: Bahrain's base is described in the calculator, the UAE's is basic salary only, so equal months do not mean equal money.

Bahrain gratuity table by wage and years of service

Gratuity (BHD) when the employer ends the contract
Monthly wage3 yrs5 yrs10 yrs20 yrs
BHD 250.000BHD 375.000BHD 875.000BHD 2,125.000BHD 4,625.000
BHD 500.000BHD 750.000BHD 1,750.000BHD 4,250.000BHD 9,250.000
BHD 1,000.000BHD 1,500.000BHD 3,500.000BHD 8,500.000BHD 18,500.000
BHD 2,000.000BHD 3,000.000BHD 7,000.000BHD 17,000.000BHD 37,000.000

Download all six Gulf countries: gcc-gratuity-months-by-tenure.csv (CC BY 4.0, please link to this page)

Methodology and limitations

Service is counted in calendar days between your joining date and last working day, inclusive, minus unpaid days, and converted to years at 365 days. Each band of service is multiplied by its statutory rate in months of wage, then any cap and resignation fraction is applied. Part years are pro rata where the law allows it.

  • Sources disagree on the wage base for SIO contributions (contract salary, basic + social allowance or basic only), and on whether employers must top up shortfalls after pay rises. Check your SIO statement against this calculation.
  • Workers with more than three years' service before March 2024 went straight to the 8.4% contribution rate.
  • Domestic workers are outside the SIO scheme.
  • Members of parliament proposed suspending the scheme in April 2025; we found no evidence it passed.

Not modelled: contractual terms better than the law, free-zone or government schemes, deductions for amounts owed, and court or settlement outcomes. Results are estimates, not legal advice.

Bahrain gratuity FAQs

How is end-of-service calculated in Bahrain?

Article 116 of Labour Law No. 36 of 2012 gives non-Bahraini workers half a month's wage for each of the first three years of service and one month's wage for each year after, pro rata for part years.

Do I get indemnity if I resign in Bahrain?

Yes. Article 116 does not reduce the leaving indemnity for resignation.

Who pays end-of-service in Bahrain now?

Since 1 March 2024, under Prime Minister's Resolution No. 109 of 2023, employers pay monthly contributions to the Social Insurance Organization (4.2% of wage for years 1–3, 8.4% after) and workers claim the indemnity from the SIO. Service before March 2024 is still the employer's liability.

Is Bahrain indemnity calculated on basic salary?

On the most recent basic wage plus any social allowance (Article 47).

Sources

01
Labour Law for the Private Sector, Law No. 36 of 2012 ↗Labour Market Regulatory Authority (LMRA). Official English translation (Arabic prevails). Article 116 indemnity; Article 47 wage basis; Article 40 payment.
02
Bahrain implements new end-of-service benefit system from 1 March 2024 ↗EY, 28 February 2024. SIO scheme, contribution rates and transition rules.
03
Bahrain employers must start pre-funding end-of-service benefits ↗WTW, February 2024. Contribution base and open questions.
04
Bahrain enhances end-of-service rights for migrant workers ↗International Labour Organization. Context on the reform.

Changelog

  • 23 October 2026 Saudi Arabia, Qatar, Oman, Kuwait and Bahrain calculators published. Saudi and Bahrain rules checked against official law text; Qatar, Oman and Kuwait against two or more professional or press sources because the official portals did not load.

Related tools

UAE Gratuity Calculator21/30-day rule, 2-year capOman Gratuity Calculator1 month of basic per year for service since 26 Jul 2023Saudi Arabia Gratuity Calculator0.5 → 1 month of wage per year: years 1–5, then every year after
About the analysis

Researched and edited by Nikhil Shrivastava

KalQLater publishes data-led explanations built from public datasets. The goal is not to force a dramatic conclusion, but to show what the available evidence supports, where datasets disagree, and what they cannot prove.

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