Bahrain End-of-Service Indemnity Calculator
Calculate your statutory Bahrain indemnity payout in BHD under Labor Law No. 36 of 2012 Article 116.
Leaving Indemnity Calculator — Bahrain
Labour Law No. 36 of 2012Select & enter details
For expatriate employees. Bahraini nationals are covered by social insurance instead.
Estimated entitlement
EligibleBHD 337,466
- Salary used
- BHD 50,000
- Completed years
- 8 yrs
- Partial year
- 91 days
- Base entitlement
- BHD 337,466
Year-by-year breakdown
| Period | Years | Rate | Amount |
|---|---|---|---|
| First 3 yrs | 3 yrs | ½ month / yr | 75,000 |
| Beyond 3 yrs | 5 yrs | 1 month / yr | 250,000 |
| Beyond 3 yrs · part year | 3 mths | 1 month / yr | 12,466 |
| Total | 337,466 |
Who pays
How Bahrain calculates it
How leaving indemnity is calculated in Bahrain
Last basic wage plus social allowance. Exclude other allowances.
Non-Bahraini employees with at least 1 year of service (calculator convention).
No reduction — the same indemnity on resignation, termination or contract expiry.
No cap. Since 1 March 2024 the benefit builds through SIO contributions (4.2% of salary for 3 years, then 8.4%).
Frequently asked · Bahrain
Which wage is used to calculate gratuity in Bahrain: basic or total salary?
The wage used is your last basic wage plus any social allowance. Other allowances are excluded.
Is gratuity payable on resignation in Bahrain?
Yes, in full, for expatriate employees. It is lost only if you are dismissed for gross misconduct.
Do Bahrainis get end-of-service gratuity (leaving indemnity)?
Generally no. The leaving indemnity applies to workers who are not covered by the Social Insurance Law, which in practice means expatriates. Bahraini nationals are covered by social insurance instead.
Why do companies need an actuarial valuation of gratuity / End of Service Benefit?
Gratuity is a long-term obligation, and accounting standards such as IAS 19 (and Ind AS 19 or AS 15 in India) require employers to measure it with actuarial methods. A valuation uses assumptions about future salary growth, employee turnover, mortality and discount rates, and it applies the projected unit credit method. For this reason it differs from the statutory calculator above, which shows the amount due today. An actuarial valuation supports the company's financial statements, the audit and funding decisions.
Bahrain Actuarial Advisory & IAS 19 Reports
Independent valuation reports for Bahrain statutory audits and employee benefit liabilities.
Talk to Bahrain Actuaries