Bahrain End of Service Gratuity Calculator Widget

Calculate a Bahrain end-of-service gratuity - half a month's wage for each of the first three years and a month for each later year, on basic wage plus social allowance - and see how much the employer owes for service before 1 March 2024 and how much the Social Insurance Organization pays after.

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<iframe src="https://a2z.tools/embed/w/bahrain-end-of-service-calculator" title="Bahrain End of Service Gratuity Calculator by A2Z Tools" width="100%" height="1140" style="border:0;width:100%" loading="lazy" allow="clipboard-write"></iframe>

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How it works

Article 116 of Bahrain's Labour Law No. 36 of 2012 gives a worker outside the social-insurance pension a leaving indemnity of half a month's wage for each of the first three years and a full month for each later year, with part years in proportion; there is no cap, no minimum period and no reduction for resigning. Article 47 fixes the wage: the last basic wage plus the social allowance, not housing or transport. Since 1 March 2024, under Prime Minister Decision 109 of 2023, expatriate private-sector workers other than GCC nationals are covered by an SIO scheme: the employer alone pays 4.2% of that wage for the first three years from hiring and 8.4% after, and the SIO pays the same formula for service from that date, capped at the contributions collected. Service before March 2024 remains the employer's debt under Article 116. The texts do not say how the three-year tier is counted across the change, so A2Z counts it from the hire date and values both parts on the last wage, and shows the split. Dues are payable immediately, or within seven days of a resignation.

Calculation method

  • Gratuity = (0.5 x first 3 years + 1 x later years) x last (basic + social allowance)
  • Part years pro rata; no cap; no resignation cut
  • Employer part = formula on service before 1 Mar 2024; SIO part = the rest (tiers from the hire date)

Worked examples

Five years

Inputs: Wage (basic + social) BHD 600; 2020-2024

Result: BHD 2,100.000

1.5 + 2 months.

Hired March 2020, left February 2026

Inputs: BHD 600

Result: Total BHD 2,700.000: employer 1,500, SIO 1,200

Tiers from the hire date.

A calculation aid, not legal advice. The SIO and the courts decide disputed amounts.

Limitations

  • For service spanning 1 Mar 2024 the tier counting and pre-2024 wage are A2Z's labelled reading.
  • GCC nationals and Bahrainis are outside this formula.
  • The effect of a summary dismissal under Article 107 is not settled in the text and is not applied.

Where publishers use it

  • A Manama HR consultancy explaining the 2024 SIO gratuity scheme to employers
  • An expatriate in Seef or Juffair checking what the employer and the SIO each owe
  • A payroll provider's page on the 4.2% / 8.4% contributions
  • An Arabic labour-law blog on Article 116

Questions

How is end of service calculated in Bahrain?

Half a month's wage for each of the first three years and one month's wage for each later year, pro rata, on the last basic wage plus social allowance (Labour Law Articles 116 and 47). Five years on BHD 600 gives 1.5 + 2 = 3.5 months = BHD 2,100.

Who pays the gratuity since March 2024?

For non-Bahraini private-sector workers, the employer pays the SIO 4.2% of the wage for the first three years and 8.4% after, and the SIO pays the gratuity for service from 1 March 2024. Service before that date is still paid by the employer.

Do I lose my gratuity if I resign in Bahrain?

No. Article 116 has no reduction for resignation and no minimum service; it applies whenever the employment ends.

Is housing allowance included?

No. Only the basic wage and the social allowance count (Article 47); the SIO's own guidance says the same.

How fast does the SIO pay?

Within five working days of the application, as a lump sum, capped at the contributions paid for the worker.

Rules and official sources

Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for Bahrain; when a rule changes, the widget changes with it.

RuleOfficial sourceIn force fromLast verifiedNext review
Leaving indemnity / end-of-service gratuity
Half a month's wage for each of the first three years and one month's wage for each later year, part years pro rata, on the LAST basic wage plus social allowance (Art. 47). No cap, no minimum service and no reduction on resignation. Art. 116 covers workers outside the Social Insurance Law: expatriate service before 1 Mar 2024 (paid by the employer) and excluded categories. From 1 Mar 2024 non-Bahraini private-sector workers (except GCC nationals) get the same formula through the SIO scheme of PM Decision 109/2023, capped at the contributions paid. A2Z counts the three-year tier from the hire date across both parts and values both on the last wage - the reading the contribution articles point to, labelled on the widget. Art. 107 summary dismissal speaks of "notice or compensation", not the indemnity; no text forfeits it. 		Labour Law for the Private Sector, Law No. 36 of 2012 (LLOC)
Legislation and Legal Opinion Commission (LLOC) - Arts. 116, 47; PM Decision 109/2023 Regulation Arts. 9, 10, 14		 2 Sep 2012 7 Oct 2026 5 Apr 2027
SIO end-of-service scheme for non-Bahrainis
From 1 Mar 2024 the employer alone pays the SIO 4.2% of the wage (basic plus social allowance) for the first three years from the hire date and 8.4% after; staff with more than three years at the start pay 8.4% from day one. The SIO pays the indemnity for service from that date within 5 working days of the claim; service before it stays with the employer under Art. 116. 		Prime Minister Decision No. 109 of 2023 and the attached Regulation
Legislation and Legal Opinion Commission (LLOC) - Decision Art. 4; Regulation Arts. 3, 5, 9, 10, 13, 14		 1 Mar 2024 7 Oct 2026 5 Apr 2027
Deadline to pay final dues
Wages and all sums due are payable immediately when the employment ends, or within 7 days if the worker left of their own accord. Late wages carry compensation of 6% a year, rising by 1% a month after six months up to 12% a year. 		Labour Law for the Private Sector, Law No. 36 of 2012 (LLOC)
Legislation and Legal Opinion Commission (LLOC) - Art. 40(b)(4), (c)		 2 Sep 2012 7 Oct 2026 5 Apr 2027

Sources

  1. Labour Law for the Private Sector, Law No. 36 of 2012 (LLOC) - Legislation and Legal Opinion Commission (LLOC) . Arts. 116, 47; PM Decision 109/2023 Regulation Arts. 9, 10, 14. Verified 2026-10-07.
  2. Prime Minister Decision No. 109 of 2023 and the attached Regulation - Legislation and Legal Opinion Commission (LLOC) . Decision Art. 4; Regulation Arts. 3, 5, 9, 10, 13, 14. Verified 2026-10-07.

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A2Z Tools Bahrain End of Service Gratuity Calculator
https://a2z.tools/embed/bahrain-end-of-service-calculator

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