End of Service Calculator - Bahrain
Calculate your end of service gratuity per Bahrain Labor Law No. 36/2012, Article 116
How to Use
- Enter your basic monthly salary
- Enter your length of service (years and months)
- Select the reason for termination (employer termination, resignation, or contract end)
- Press "Calculate" to see your end of service gratuity with a detailed breakdown
This tool is available for other countries
End-of-service gratuity in Bahrain (2026)
End-of-service gratuity (مكافأة نهاية الخدمة), or "leaving indemnity," is the lump-sum benefit a private-sector worker earns in the Kingdom of Bahrain when employment ends. It is governed by Article 116 of Bahrain Labour Law No. 36 of 2012, and since 1 March 2024 it is administered through a funded scheme run by the Social Insurance Organisation (SIO).
How the gratuity is calculated (Article 116)
The entitlement accrues at two rates based on length of service:
- First 3 years: half a month's wage for each year.
- From year 4 onward: a full month's wage for each additional year.
It is paid in full regardless of why the job ended — resignation, employer termination, and contract expiry are treated the same. There is no maximum cap on the total (unlike the UAE), and it accrues from your first day: there is no qualifying minimum, and fractions of a year are paid pro-rata.
What changed in 2024: the SIO funded scheme
Under Edict (Resolution) No. 109 of 2023, effective 1 March 2024, gratuity for non-Bahraini private-sector workers is no longer paid by the employer as a single lump sum at the end of service. Instead, the employer pays monthly contributions to the SIO (4.2% of wage for the first three years of service, 8.4% thereafter), and the worker claims the accumulated benefit directly from the SIO on leaving. The rates are set to reproduce the half-month / one-month accrual, though the wage base used for SIO contributions may be broader than the Article 116 lump-sum base. Service earned before 1 March 2024 stays the employer's direct responsibility under the old Article 116 method — so a worker leaving in 2026 may receive two payments: the pre-2024 portion from the employer and the post-2024 portion from the SIO.
Bahraini nationals vs expatriate workers
Article 116 applies to workers not covered by the Social Insurance Law — in practice, expatriate (non-Bahraini) employees. Bahraini nationals are instead covered by SIO pension contributions and receive a pension rather than a lump-sum gratuity. (A Bahraini earning above BHD 4,000 per month — the monthly insurable-wage ceiling — may receive gratuity only on the portion of salary above that figure.)
Which wage is used?
Under Article 116, the gratuity is based on your last basic wage plus social allowance; other allowances such as housing and transport are excluded. Enter that figure in the calculator for an accurate estimate.
Bahrain vs other GCC countries
| Rule | Bahrain | Saudi Arabia | UAE |
|---|---|---|---|
| On resignation | Full gratuity | Reduced (⅓ / ⅔ by tenure) | Full after 1 year |
| Maximum cap | None | None | 2 years' pay |
| Wage base | Basic + social allowance | Last wage incl. allowances | Basic salary only |
That is why an identical salary and tenure can produce a different gratuity in each country.
Calculation Methodology
Wage used in the calculation
The calculator uses the monthly salary you enter as the calculation base. In some systems this may be basic wage only, while in others it may include actual wage or fixed allowances; enter the wage basis that matches your country and contract.
Service period conversion
The calculator converts years and months of service into a proportional period, then applies the days or months owed per year according to the country and termination reason.
Reason employment ended
The result changes for resignation, employer termination, or contract end. Some laws reduce or deny gratuity for certain service periods. Check the legal reference on the page for final treatment.
Practical Examples
End of service after 5 years — 800 BHD salary
Fatima earned a basic salary of 800 BHD and her service ended after 5 years. First 3 years: 3 × (800 ÷ 30) × 15 = 1,200 BHD Next 2 years: 2 × (800 ÷ 30) × 30 = 1,600 BHD Gratuity = 1,200 + 1,600 = 2,800 BHD Paid in full regardless of termination reason.
Resignation after 10 years — 1,200 BHD salary
Ahmad earned a basic salary of 1,200 BHD and resigned after 10 years. First 3 years: 3 × (1,200 ÷ 30) × 15 = 1,800 BHD Next 7 years: 7 × (1,200 ÷ 30) × 30 = 8,400 BHD Gratuity = 1,800 + 8,400 = 10,200 BHD Paid in full (no resignation reduction in Bahrain).
Frequently Asked Questions
Is gratuity paid regardless of the reason for termination in Bahrain?
Did Bahrain's end of service gratuity change in 2024?
Do Bahraini citizens receive an end of service gratuity?
What is the minimum service period to qualify for gratuity in Bahrain?
What wage is used to calculate gratuity in Bahrain?
How does Bahrain differ from Saudi Arabia on resignation?
Legal References
Disclaimer: The results shown are approximate and for reference only, and do not constitute financial or legal advice. Actual amounts may vary based on additional factors. Please consult the relevant official authorities or a licensed financial advisor for accurate information specific to your situation.