Bahrain Indemnity Calculator

For non-Bahraini private-sector employees. Shows what the employer pays and what SIO pays.

BHD

Include housing, transport and other regular allowances.

More options

Days without pay are not counted as service.

Estimated entitlement
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Fill in your dates and salary – the result appears instantly.

§ Article 116

Estimate only, based on the law as reviewed on 2026-10-11. Not legal advice – confirm with your employer or Ministry of Labour.

Rate
Half a month/year (first 3 years), one month/year after
Minimum service
None (pro rata)
Salary used
Full wage
Law
Article 116

How it’s calculated

  1. Use your last monthly wage.
  2. Years 1–3: half a month’s wage for each year; every later year: one month’s wage.
  3. Part years count in proportion.
  4. Service before 1 March 2024 is paid by the employer; service from 1 March 2024 is paid through SIO, funded by monthly employer contributions.

Worked examples

8 years · BHD 100 a month BHD 650.000
5 years · BHD 600 a month BHD 2,100.000

Legal reference

Legislation: Labour Law for the Private Sector No. 36 of 2012, and the SIO end-of-service scheme for non-Bahrainis (from 1 March 2024)

Provisions: Article 116

Official sources:

Last reviewed:

Good to know

  • Since 1 March 2024, employers pay monthly end-of-service contributions to SIO for non-Bahraini workers (4.2% of wage for the first three years, 8.4% after), and SIO pays that part of the award.
  • The SIO payment is based on contributions actually paid. If your employer did not register you or paid on a lower wage, the SIO part may differ.
  • Bahraini nationals are covered by the social insurance pension, not this indemnity.
  • Resignation does not reduce the indemnity under the current law.

Questions

Who pays my indemnity in Bahrain after March 2024?

Your employer pays for service before 1 March 2024. SIO pays the part earned from 1 March 2024 onwards.

Example: 8 years at BHD 100?

3 years × half a month (BHD 150) + 5 years × one month (BHD 500) = BHD 650.

Same calculator in other GCC countries

This calculator gives an estimate based on our reading of the published law. It is not legal advice and is not affiliated with any government. Final amounts depend on your contract and records. Read the full disclaimer