Bahrain End of Service Gratuity Calculator
Bahrain End of Service Gratuity Calculator
For expatriates in Bahrain: the end-of-service gratuity your employer still owes for service before 1 March 2024 under Article 116 of the Labour Law, and an estimate of the part the SIO now pays.
Bahrain end-of-service gratuity
Wage BHD 800 a month (an example), 5 years 6 months before 1 March 2024 and 2 years 6 months since
Gratuity under Article 116, split at 1 March 2024
- W
- the last monthly wage (basic plus social allowance)
- S₁
- years of service before 1 March 2024
- S₂
- years of service since 1 March 2024
Worked example
Wage BHD 800 a month (an example), 5 years 6 months before 1 March 2024 and 2 years 6 months since
Employer part: ½ × 3 + (5.5 − 3) = 4 months × 800 = BHD 3,200.00
Whole service 8 years: ½ × 3 + 5 = 6.5 months = BHD 5,200.00
Estimated SIO part: 5,200.00 − 3,200.00 = BHD 2,000.00
Who pays Bahrain’s end-of-service gratuity since 2024
Article 116 of Bahrain’s Labour Law No. 36 of 2012 gives a worker not covered by the social insurance pension scheme — in practice an expatriate — a leaving indemnity of half a month’s wage for each of the first three years of service and a month’s wage for each year after, with part years in proportion. Resigning does not reduce it. The wage is the last wage, taken as basic pay plus any social allowance.
The 2024 change. Under Edict No. 109 of 2023, from 1 March 2024 the Social Insurance Organization (SIO) pays the end-of-service gratuity of private-sector expatriates. Employers now pay SIO a monthly contribution of 4.2% of the wage in the first three years of service and 8.4% after: 4.2% for 12 months is about half a month’s wage a year, and 8.4% about a month. Service before 1 March 2024 is not moved to SIO: the employer still owes it, under the traditional Article 116 rules, when the employment ends. That is the figure this page puts first.
On the example, 5 years 6 months before the change and 2 years 6 months after at BHD 800 gives BHD 3,200.00 from the employer and about BHD 2,000.00 from SIO, BHD 5,200.00 in all. The SIO figure is an estimate: SIO says it pays on the last wage, which is how it is calculated here, but its own records of your contributions decide the amount.
Conventions and limits. The three-year band is counted over the whole contract, so a worker with five years before March 2024 earns a full month for every later year. The page does not cover Bahraini or other GCC nationals, who are in the pension scheme, and any worker whose contract gives more than the law. Choose BHD in the currency menu for dinars. Compare the Saudi end-of-service calculator and the UAE gratuity calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
Who pays end-of-service gratuity in Bahrain now?
For expatriates, the SIO pays the part earned from 1 March 2024, funded by employer contributions of 4.2% then 8.4% of the monthly wage. The employer still pays the part earned before 1 March 2024.
How is the gratuity for service before March 2024 calculated?
Under Article 116: half a month’s last wage for each of the first three years and a month’s wage for each year after. 5 years 6 months at BHD 800 gives BHD 3,200.00.
Does resignation reduce gratuity in Bahrain?
No. The 2012 Labour Law pays the same Article 116 amount however the contract ends, except where the law allows the employer to withhold it for serious misconduct.
Is my SIO gratuity the same as the old formula?
The contribution rates are set to fund about the same amount (half a month a year, then a month), and SIO says it pays on the last wage. SIO’s own statement decides the figure.
Related calculators
References
- Kingdom of Bahrain. Labour Law for the Private Sector, Law No. 36 of 2012, Article 116 (leaving indemnity).
- Kingdom of Bahrain. Edict No. 109 of 2023 on the end-of-service gratuity for non-Bahraini workers through the Social Insurance Organization, effective 1 March 2024 (EY Global Tax Alert, 2024).
- Social Insurance Organization, Bahrain. End of Service Gratuity for non-Bahrainis: contributions of 4.2% and 8.4%; claims for earlier periods against the employer. https://www.sio.gov.bh/en/end-of-service-gratuity-for-non-bahrainis