Bahrain End of Service Calculator
Work out your leaving indemnity under Bahrain's Labour Law, and how much your employer and the SIO each pay since March 2024.
Your service is counted back from your last working day, to see how much falls before and after 1 March 2024.
Your last monthly wage: basic plus regular allowances, unless your contract says basic only. A day's wage is a month ÷ 30.
Expat workers: service from 1 March 2024 is paid by the Social Insurance Organization. Choose "No" to see the whole amount under Article 116 alone.
The SIO pays on your last wage, but not more than the contributions paid in. If your wage rose recently, the contributions figure can be lower.
Unpaid leave does not count as service. A month counts as 30 days. It is taken off the time before and after March 2024 in proportion.
Add what else you are owed or owe, to see the full amount you should be paid when you leave.
Leave and notice days are paid at your full monthly wage ÷ 30. Leave builds up at 2.5 days a month (30 a year); notice is usually 30 days.
How much of that currency you get for 1 BHD. Use today's rate from your bank or exchange house.
Year-by-year end of service and who pays it
| Year | Rate | Employer | SIO | Running total |
|---|
How your end of service is worked out
Half a month's wage for each of the first three years, a full month for each year after. From March 2024 the SIO pays the part earned after that date.
- 1
Length of service
7y 0m 0d
= 7 years - 2
First three years
3 × ½ × 500
= BHD 750.000 - 3
Years after three
4 × 500
= BHD 2,000.000 - 4
Who pays it
1,833.333 + 916.667
= BHD 2,750.000
Read more: the formula, the SIO change, resigning and your final settlement
Article 116 of Bahrain's private-sector Labour Law No. 36 of 2012 gives a non-Bahraini worker a leaving indemnity when the contract ends, worked out on the last wage:
- First three years: half a month's wage for each year.
- Every year after that: one month's wage for each year.
- Part years are paid in proportion to the time worked.
- There is no upper limit on the number of months.
The formula
indemnity = ½ × monthly wage × first 3 years + monthly wage × years after 3
employer pays the part earned before 1 March 2024
the SIO pays the part earned from 1 March 2024
Worked example
You worked from 1 January 2019 to 31 December 2025, which is 7 years, on a last wage of BHD 500 a month. The first three years give 3 × ½ × 500 = BHD 750.000, and the next four give 4 × 500 = BHD 2,000.000. Your end of service is BHD 2,750.000, or 5.5 months of wage.
Of that, 5 years and 2 months were before 1 March 2024: 3 × ½ + 2⅙ × 1 = 3⅔ months, so your employer pays 3⅔ × 500 = BHD 1,833.333. The 1 year and 10 months from 1 March 2024 are all past year three: 1⅚ × 1 = 1⅚ months, so the SIO pays 1⅚ × 500 = BHD 916.667. Together, 1,833.333 + 916.667 = BHD 2,750.000.
Worked out from contributions instead, the SIO part is 22 months × 8.4% × 500 = BHD 924.000.
The SIO change in March 2024
Since 1 March 2024 (Prime Minister's Decision No. 109 of 2023), employers pay a monthly contribution for each expat worker to the Social Insurance Organization instead of saving up the indemnity themselves:
| Service with the employer | Employer pays the SIO each month | Over 12 months |
|---|---|---|
| First 3 years | 4.2% of the wage | 0.504 of a month |
| After 3 years | 8.4% of the wage | 1.008 months |
When you leave, the SIO pays the award for your service after that date, on your last wage, but not more than the contributions paid in. Your employer still owes the part you earned before 1 March 2024 under Article 116. Nothing is taken from your own pay for this.
If you resign or are dismissed
- Resigning does not reduce the leaving indemnity under the 2012 law. The older 1976 law did cut it, so older guides may say otherwise.
- Dismissed without a valid reason (a contract with no end date): Article 111 adds 2 days' wage for each month of service, at least one month's wage and at most 12. The calculator adds this to your final settlement.
- Dismissed for misconduct under Article 107: the contract ends without notice, but the leaving indemnity is still worked out the same way.
Your final settlement
- Unused annual leave is paid when you leave. The law gives 30 days of paid leave a year after the first year, which is 2.5 days a month.
- Notice pay. A contract with no end date needs at least 30 days' notice. If you are not asked to work it, it is paid.
- Your employer may deduct loans or advances you still owe.
Good to know
- Bahraini workers are covered by the social insurance pension scheme instead of the Article 116 indemnity.
- The calculator uses your last wage for the SIO part too. The real contributions follow the wage you were paid each month.
- Domestic workers and government staff follow different rules.
Rules from Bahrain Labour Law No. 36 of 2012 (Articles 58, 99, 107, 111 and 116) checked on 11 October 2026 against the English text of the law published by the LMRA (lmra.gov.bh). The SIO end-of-service scheme details (contribution rates, the cap at contributions paid and how the first three years are counted) come from widely quoted summaries and are not yet checked against sio.gov.bh. This is an estimate for general information, not legal advice. What counts as your wage can depend on your contract. Check with your employer, the LMRA or the SIO before relying on it.
Common questions
How is end of service calculated in Bahrain?
Under Article 116 of Bahrain's Labour Law No. 36 of 2012, a non-Bahraini worker gets half a month's wage for each of the first three years of service and one month's wage for each year after, with part years paid in proportion, on the last wage. Seven years on BHD 500 a month gives 1.5 + 4 = 5.5 months, or BHD 2,750.
Do I lose my end of service in Bahrain if I resign?
No. Under the 2012 Labour Law the leaving indemnity is worked out the same way whether you resign, your employer ends the contract or a fixed-term contract finishes. Resigning only affects other items, such as the notice you must give. The older 1976 law cut the amount for resignations, which is why you may still read that it is reduced.
What changed in Bahrain end of service in March 2024?
From 1 March 2024, employers pay a monthly contribution for expat workers to the Social Insurance Organization (SIO): 4.2% of the wage in the first three years with that employer and 8.4% after. The SIO pays the end-of-service award for service after that date. Service before 1 March 2024 is still paid by the employer under Article 116.
Does the SIO pay the same amount as the old indemnity?
The SIO award follows the same schedule, half a month a year for the first three years and a month a year after, on the last wage, but it can't be more than the contributions paid in. 12 months at 4.2% is 0.504 of a month and at 8.4% is 1.008 months, so with a steady wage both give almost the same figure.
What else is paid in a Bahrain final settlement?
On top of the leaving indemnity you are usually owed pay for unused annual leave (30 days a year after the first year, or 2.5 days a month), 30 days' notice pay if you are not asked to work your notice, and any unpaid wages. If you are dismissed without a valid reason, Article 111 adds 2 days' wage for each month of service, at least one month and at most 12 months.
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