Bahrain Gratuity Calculator
Estimate your Bahrain leaving indemnity, including the share paid by SIO since March 2024.
✓ Rules checked November 2026 · Bahrain Labour Law No. 36 of 2012, Article 116; SIO system from 1 March 2024Your country
How end-of-service is calculated in Bahrain
- Half a month's wage for each of the first three years, then one month's wage for each year after (Article 116).
- Uses your last basic wage, plus any social allowance.
- Part years count in proportion. Resigning doesn't reduce the amount.
- Since 1 March 2024, employers pay monthly contributions to the Social Insurance Organization (SIO): 4.2% of the wage for the first three years, then 8.4%. SIO pays the indemnity for service from that date.
- Your employer still pays directly for service before 1 March 2024. The calculator shows both parts.
- This applies to non-Bahraini workers. Bahrainis are covered by the pension system.
Worked example
Basic BHD 700, 5 years (started before March 2024), resigned½ month per year (first 3 years): 3 years → BHD 1,050.000
1 month per year (after 3 years): 2 years → BHD 1,400.000Gratuity: BHD 2,450.000
1 month per year (after 3 years): 2 years → BHD 1,400.000Gratuity: BHD 2,450.000
Questions people ask
Who pays my gratuity in Bahrain now?
For service since 1 March 2024, the Social Insurance Organization (SIO) pays it from your employer's contributions. Your employer pays for earlier years.
Is gratuity reduced if I resign in Bahrain?
No. The amount is the same however the contract ends.
Is anything deducted from my salary for it?
No. The SIO contributions are paid by the employer only.
What wage is used?
Your last basic wage plus any social allowance.
Compare the GCC
| Country | Rate | Salary used | Minimum service | If you resign | Cap |
|---|---|---|---|---|---|
| Saudi Arabia | ½ month/yr (5 yrs), then 1 month | Basic + allowances | None | Reduced: none <2 yrs, ⅓, ⅔, full at 10 | None |
| UAE | 21 days/yr (5 yrs), then 30 days | Basic only | 1 year | No cut | 24 months |
| Qatar | 3 weeks/yr (minimum) | Basic only | 1 year | No cut | None |
| Kuwait | 15 days/yr (5 yrs), then 1 month | Basic + allowances | None | Reduced: none <3 yrs, ½, ⅔, full at 10 | 18 months |
| Bahrain | ½ month/yr (3 yrs), then 1 month | Basic only | None | No cut | None |
| Oman | 1 month/yr (since Jul 2023) | Basic only | None | No cut | None |