Bahrain Final Settlement Calculator Widget
Put together a Bahrain final settlement: unpaid wages, the Article 116 gratuity, the cash value of the annual-leave balance and thirty days' notice in lieu - all three statutory items on the last basic wage plus social allowance, as Article 47 requires.
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How it works
Bahrain's Labour Law ties three exit payments to one wage. Article 47 says the gratuity, the payment for the annual-leave balance under Article 59 and the compensation for notice not given under Article 99 are all calculated on the worker's last basic wage plus the social allowance, if any - so the settlement asks only for that figure. The gratuity follows Article 116 (half a month a year for three years, a month after), using the same engine as A2Z's Bahrain gratuity calculator. The leave balance is paid on exit and must be settled at least every two years anyway; the Law gives no day divisor, so thirty days is used and labelled. Article 99 requires at least thirty days' notice from either side; whoever skips it pays the wage for the whole or the remaining period. Everything is due immediately on termination, or within seven days if the worker resigned, and late wages attract six per cent a year, rising to twelve.
Calculation method
- Gratuity: Art. 116 on basic + social allowance
- Leave balance = (basic + social) / 30 x days (Arts. 59, 47)
- Notice in lieu = 30 days of (basic + social) (Arts. 99, 47)
Worked examples
Five years, notice paid in lieu
Inputs: Wage (basic + social) BHD 600; 10 leave days
Result: Net BHD 2,900.000
2,100 + 200 + 600.
A calculation aid, not legal advice.
Limitations
- Wages owed and deductions are entered by you.
- Unfair-dismissal compensation under Article 111 is not added.
- For expatriates the post-March-2024 gratuity is paid by the SIO, not the employer.
Where publishers use it
- An HR exit checklist for a Bahrain trading company
- A worker comparing the employer's figures with the law
- A legal clinic explaining Article 47
- A Sanad or Isa Town contracting firm preparing an expatriate's cancellation and exit dues
Questions
What is the notice period in Bahrain?
At least 30 days for either party (Labour Law Article 99). An employer may agree a longer period when it is the one terminating.
Is unused leave paid when I leave Bahrain?
Yes. Article 59(c) requires the remaining balance to be paid when employment ends, on the basic wage plus social allowance.
When must the final settlement be paid?
Immediately when the employment ends, or within seven days if the worker left voluntarily (Article 40). Late payment carries 6% a year, up to 12%.
Is there compensation if I am dismissed without a valid reason in Bahrain?
Yes, separately from the settlement: Article 111 awards two days' wage for each month of service on an open-ended contract, at least one month and at most twelve, plus half again if the dismissal was arbitrary.
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.
| Rule | Official source | In force from | Last verified | Next 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 |
| Annual leave At least 30 days' paid leave after one year, accruing at 2.5 days a month, pro rata under a year. At least 15 days must be taken each year. The balance must be settled at least every two years and is paid on exit on the Art. 47 basis. |
Labour Law for the Private Sector, Law No. 36 of 2012 (LLOC) Legislation and Legal Opinion Commission (LLOC) - Arts. 58, 59, 47 |
2 Sep 2012 | 7 Oct 2026 | 5 Apr 2027 |
| Notice period At least 30 days' notice for either party (longer only by agreement when the employer terminates). Pay in lieu equals the wage for the whole or remaining notice period on the Art. 47 basis - last basic wage plus social allowance. |
Labour Law for the Private Sector, Law No. 36 of 2012 (LLOC) Legislation and Legal Opinion Commission (LLOC) - Arts. 99, 47 |
2 Sep 2012 | 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
- 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.
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A2Z Tools Bahrain Final Settlement Calculator https://a2z.tools/embed/bahrain-final-settlement-calculator
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[A2Z Tools Bahrain Final Settlement Calculator](https://a2z.tools/embed/bahrain-final-settlement-calculator)
Bahrain Final Settlement Calculator by A2Z Tools - https://a2z.tools/embed/bahrain-final-settlement-calculator
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