GulfDues / Bahrain leaving indemnity calculator
Bahrain gratuity (leaving indemnity) calculator
Your leaving indemnity under the Bahrain Labour Law: half a month of wage a year for the first 3 years, then a month a year.
Your estimate
How it is worked out
First 3 years: half a month of wage for each year. After 3 years: a month of wage for each year. Part years count pro rata.
Example: wage BHD 400, 6 years: 3 × 200 = BHD 600, plus 3 × 400 = BHD 1,200; total BHD 1,800.
Sources (checked October 2026): Paul Hastings: Bahrain leaving indemnity and the SIO · Middle East Briefing: gratuity in the GCC. Laws change - the ministry or a court gives the final figure.
Questions
How is the leaving indemnity calculated in Bahrain?
Under Article 116 of Labour Law No. 36 of 2012: half a month of wage for each of the first 3 years, and one month of wage for each year after that. Part years count pro rata.
Do I lose it if I resign?
No. Resigning does not reduce it. It is lost only if you are dismissed for one of the serious reasons in Article 107.
Who pays it now?
Since March 2024 the employer pays a monthly contribution for each expatriate worker to the Social Insurance Organisation (SIO), and you claim the indemnity from the SIO when you leave.
Which wage is used?
Your last wage. Check your contract and the SIO statement for what counts.