Bahrain's leaving indemnity is half a month's wage per year for the first three years and a month per year after, paid whether you resign or are let go. What changed in March 2024 is who pays: employers now fund it monthly through the Social Insurance Organization (SIO), and you claim it from the SIO for service from that date.
Basic wage plus any social allowance (Article 47). Commission or piece-rate workers use the average of the last three months.
Estimate of the legal minimum only. Contracts and company policies can pay more, employers may deduct amounts you owe, and free-zone or government employers can follow different rules. Not legal advice.
Indemnity = wage × (0.5 × years up to 3 + 1 × years after 3)
3.0 years × 0.50 month + 4.5 years × 1.00 month = 6.000 months of wage. BHD 500.000 × 6.000 = BHD 3,000.000.
| Situation | Minimum service | What is paid |
|---|---|---|
| Any end of contract, including resignation | None | Full indemnity, pro rata |
| Service from 1 March 2024 | — | Claimed from the SIO |
| Service before 1 March 2024 | — | Still owed by the employer under the Labour Law |
| Bahraini nationals | — | Covered by social insurance instead |
Finding: no, it changed who holds the money. The Article 116 amount is the same. Employers pay 4.2% of wage a month for years 1–3 and 8.4% after, which is half a month and one month a year spread over twelve months. The difference is protection: the money sits with the SIO, so it no longer depends on the employer paying at exit.
| Service | Bahrain | UAE (basic) |
|---|---|---|
| 1 year | 0.50 | 0.70 |
| 2 years | 1.00 | 1.40 |
| 3 years | 1.50 | 2.10 |
| 5 years | 3.50 | 3.50 |
| 7 years | 5.50 | 5.50 |
| 10 years | 8.50 | 8.50 |
| 15 years | 13.50 | 13.50 |
| 20 years | 18.50 | 18.50 |
| 25 years | 23.50 | 23.50 |
Calculated by KalQLater from the articles cited below. UAE figures use Article 51 of Federal Decree-Law No. 33 of 2021. Wage definitions differ: Bahrain's base is described in the calculator, the UAE's is basic salary only, so equal months do not mean equal money.
| Monthly wage | 3 yrs | 5 yrs | 10 yrs | 20 yrs |
|---|---|---|---|---|
| BHD 250.000 | BHD 375.000 | BHD 875.000 | BHD 2,125.000 | BHD 4,625.000 |
| BHD 500.000 | BHD 750.000 | BHD 1,750.000 | BHD 4,250.000 | BHD 9,250.000 |
| BHD 1,000.000 | BHD 1,500.000 | BHD 3,500.000 | BHD 8,500.000 | BHD 18,500.000 |
| BHD 2,000.000 | BHD 3,000.000 | BHD 7,000.000 | BHD 17,000.000 | BHD 37,000.000 |
Download all six Gulf countries: gcc-gratuity-months-by-tenure.csv (CC BY 4.0, please link to this page)
Service is counted in calendar days between your joining date and last working day, inclusive, minus unpaid days, and converted to years at 365 days. Each band of service is multiplied by its statutory rate in months of wage, then any cap and resignation fraction is applied. Part years are pro rata where the law allows it.
Not modelled: contractual terms better than the law, free-zone or government schemes, deductions for amounts owed, and court or settlement outcomes. Results are estimates, not legal advice.
Article 116 of Labour Law No. 36 of 2012 gives non-Bahraini workers half a month's wage for each of the first three years of service and one month's wage for each year after, pro rata for part years.
Yes. Article 116 does not reduce the leaving indemnity for resignation.
Since 1 March 2024, under Prime Minister's Resolution No. 109 of 2023, employers pay monthly contributions to the Social Insurance Organization (4.2% of wage for years 1–3, 8.4% after) and workers claim the indemnity from the SIO. Service before March 2024 is still the employer's liability.
On the most recent basic wage plus any social allowance (Article 47).