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Bahrain end-of-service gratuity calculator 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

Enter your last salary and how long you have worked to see the gratuity you are owed in Bahrain, whether you resign or the employer ends the contract.

Short answer

Article 116 of Labour Law No. 36 of 2012 says a worker not covered by the Social Insurance Law, which in practice means an expat, is entitled to half a month's pay for each of the first 3 years and a month's pay for each year after that, with part years counted. It is calculated on the last basic pay plus social allowance if there is one, without other allowances. Example: 5 years of service on a basic salary of 1,000 Bahraini dinars (1,400 with allowances) gives 3,500 Bahraini dinars when the contract ends or the employer ends it.

Your service

Bahraini dinar
Bahraini dinar
Some laws use the total salary, or cap the gratuity with it.

Worked examples: basic salary 1,000 BHD

Length of serviceIf you resignIf the contract ends
1 year500500
3 years1,5001,500
5 years3,5003,500
10 years8,5008,500

For an expat with a total salary of 1,400 BHD (basic plus allowances). Amounts in BHD.

How it is calculated

The 5-year example above, step by step:

  1. First 3 years: 3 × half a month = 1500 dinars
  2. After 3 years: 2 × one month = 2000 dinars
  • Article 116 of the Labour Law: half a month's pay for each of the first 3 years and one month's pay for each year after that, with parts of a year counted pro rata. The law does not reduce the gratuity on resignation and sets no cap.
  • Since 1 March 2024 the employer pays a monthly contribution to the Social Insurance Organization (4.2%, then 8.4%), and the SIO pays the gratuity to the worker as a lump sum within 5 working days of the application. For the period before March 2024, the worker claims from the employer directly.
  • It is worked out on the last basic wage plus the social allowance, if any, without other allowances.

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Gratuity questions about Bahrain

How much end-of-service gratuity will I get in Bahrain?

Article 116 of Labour Law No. 36 of 2012 says a worker not covered by the Social Insurance Law, which in practice means an expat, is entitled to half a month's pay for each of the first 3 years and a month's pay for each year after that, with part years counted. It is calculated on the last basic pay plus social allowance if there is one, without other allowances. Example: 5 years of service on a basic salary of 1,000 Bahraini dinars (1,400 with allowances) gives 3,500 Bahraini dinars when the contract ends or the employer ends it.

How do I calculate end-of-service gratuity in Bahrain?

Half a month's basic pay for each of the first 3 years and a month for each year after that. Basic pay of 800 dinars and 6 years gives 3,600 dinars.

Is the Bahrain gratuity reduced if I resign?

No. Article 116 of the Labour Law does not reduce the gratuity when you resign.

Who pays an expat's end-of-service gratuity in Bahrain?

The Social Insurance Organisation, since 1 March 2024, as a lump sum within 5 working days of the online application. For the period before that, the worker claims from the employer.

Sources

  1. SIO: end-of-service gratuity for non-Bahrainis (4.2% and 8.4%, since 1 March 2024) Official source · checked 2 October 2026
  2. Labour Law for the Private Sector No. 36 of 2012 (Article 116) Official source · checked 2 October 2026

Based on each country's labour law, as listed on our sources page. Special cases (fixed-term contracts, dismissal for misconduct, domestic workers) can differ; check with the labour ministry in your country.

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