Bahrain indemnity calculator (2026)
End-of-service indemnity for expatriate private-sector employees
An expatriate's end-of-service value in Bahrain accrues at half a month's wage for each of the first three years of service and one full month's wage for each year beyond three, on basic salary plus social allowance. Since 1 March 2024 this is funded by monthly employer contributions to the Social Insurance Organisation (SIO) at 4.2% of wage for the first three years and 8.4% thereafter, which is economically equivalent to the half-month and full-month accrual.
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Frequently asked questions
How is end-of-service indemnity calculated in Bahrain?
Half a month's wage for each of the first three years of service, then a full month's wage for each year beyond three, based on basic salary plus social allowance, pro-rated for partial years.
What changed in March 2024?
For service from 1 March 2024, the indemnity is no longer a lump sum paid by the employer at the end. The employer pays a monthly contribution to the SIO (4.2% of wage for the first three years, 8.4% after), and you claim the accumulated benefit from the SIO when your job ends. The amount accrues at the same half-month and full-month rate.
Which salary is used?
Basic salary plus the social allowance, if any. Housing, transport and other allowances are excluded.
Does resignation reduce it?
No. Under the current system the value accrues the same way whether you resign or are terminated.
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This tool estimates the accrued end-of-service value (half-month then full-month per year). For service since 1 March 2024 the benefit is funded by SIO contributions and disbursed by the SIO; service before then is an employer-paid lump sum. Final settlement may differ. This is not legal advice.