Bahrain end-of-service calculator
Bahrain split end-of-service in two on 1 March 2024. This shows both parts — what your employer pays directly and what the SIO funds — and the total.
Because the rules changed mid-stream, your gratuity can have two pieces. We work out each from your dates, so you can see exactly where every dinar comes from.
How Bahrain end-of-service works now (Article 116 + the SIO)
For service before 1 March 2024, the old formula applies and your employer pays it directly: 15 days of wage for each of the first three years, then a full month for each year after. For service from 1 March 2024, the system changed — your employer now pays monthly into the Social Insurance Organisation (SIO) at 4.2% of your wage for the first three years of service and 8.4% after, which come to the same half-month and full-month rates.
It's calculated on your basic wage plus social allowance, with no cap, and resignation doesn't reduce it. If your service started before the change and continues past it, you'll see both parts below — the older one your employer settles, the newer one the SIO pays.
Worked example. Wage BHD 1,000, from 1 March 2022 to 1 March 2026: the first two years (pre-change) are 1.0 month = BHD 1,000, paid by the employer; the next two years (post-change) are 1.5 months = BHD 1,500, via the SIO — BHD 2,500 in total.
Based on Bahrain Labour Law (Law 36 of 2012), Article 116, with Edict 109 of 2023 — last verified 14 June 2026.
Questions people ask
How is Bahrain end-of-service gratuity calculated now?
Service before 1 March 2024 is paid by your employer under the old formula — 15 days' wage a year for the first three years, then one month a year. Service from 1 March 2024 is funded through monthly SIO contributions (4.2% then 8.4% of your wage), which work out to the same rates.
Who pays my gratuity — the employer or the SIO?
Both, for different periods. Your employer pays the part you earned before 1 March 2024 directly; the part since then comes from the Social Insurance Organisation, which your employer has been paying into monthly.
Is gratuity based on basic or total salary?
On your basic wage plus social allowance, if any.
Does resignation reduce my Bahrain gratuity?
No. You're entitled to full gratuity whether you resign, are terminated, or your contract ends — except in cases of misconduct.