Bahrain End of Service Indemnity Calculator
حاسبة مكافأة نهاية الخدمة في قانون العمل البحريني — المادة 116
Calculate your statutory expatriate End of Service Indemnity (EOSI) under the Bahrain Labour Law for the Private Sector (Law No. 36 of 2012 Article 116). Accurately determines your terminal severance payout based on the statutory two-tier formula: 15 days' basic wage per year for the first 3 years and one full month's basic wage per year from year 4 onwards.
Under Bahrain labor regulations, expatriates who voluntarily resign retain 100% full indemnity without statutory resignation deductions. Learn how the Social Insurance Organization (SIO) expat gratuity fund protects your terminal dues and generate an official audit statement below.
Salary & Service Tenure Details
Indemnity Assessment Summary
Comparative Analysis: Statutory End of Service Indemnity Across the GCC
Bahrain transitions workers from half-month to full-month gratuity after year 3, offering earlier access to full-month accrual than Saudi Arabia or Kuwait (year 5):
| Country & Legislation | Initial Service Years | Subsequent Years Tier | Resignation Deduction Policy | Statutory Divisor |
|---|---|---|---|---|
| Bahrain (Law No. 36/2012 Art. 116) | 15 Days / yr (Y1-3) | 30 Days / yr (Y4+) | 100% Full Payout (No Reduction) | 30 Days |
| Oman (RD 53/2023 Art. 61) | 30 Days (1 Month) / yr | 30 Days (1 Month) / yr | 100% Full Payout (No Reduction) | 30 Days |
| Saudi Arabia (Labor Law Art. 84-85) | 15 Days / yr (Y1-5) | 30 Days / yr (Y6+) | 0% (<2y), 33% (2-5y), 66% (5-10y), 100% (10y+) | 30 Days |
| Kuwait (Labor Law 6/2010 Art. 51-53) | 15 Days / yr (Y1-5) | 30 Days / yr (Y6+) | 0% (<3y), 50% (3-5y), 66% (5-10y), 100% (10y+) | 26 Days (Court Divisor) |
| Qatar (Labor Law 14/2004 Art. 54) | 21 Days (3 Weeks) / yr | 21 Days (3 Weeks) / yr | 100% Full Payout (Law 19/2020) | 30 Days |
| UAE (Decree-Law 33/2021 Art. 51) | 21 Days / yr (Y1-5) | 30 Days / yr (Y6+) | 100% Full Payout (Capped at 2 yrs pay) | 30 Days |
📊 Bahraini Statutory Wage & Tax Breakdown Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (BHD) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.000 BD |
Frequently Asked Questions — Bahrain Labour Law Indemnity (أسئلة شائعة)
How is End of Service Indemnity calculated under Bahrain Labour Law No. 36 of 2012?
Under Article 116 of Law No. 36/2012, non-Bahraini employees are entitled to an End of Service Indemnity calculated:
• First Three (3) Years: Half a month's basic wage (15 days) for each year of service.
• Subsequent Years (Year 4+): One full month's basic wage (30 days) for each year of service.
• Fractional years are calculated on a strictly proportionate pro-rata basis using the worker's last drawn basic salary.
Does an expatriate worker lose gratuity if they resign voluntarily in Bahrain?
No. Under Article 116 of Bahrain Labour Law, expatriate employees retain 100% of their accrued end-of-service indemnity upon voluntary resignation, provided they serve their contractual or statutory 30-day notice period. Bahrain does not impose the resignation deduction tiers found in some other GCC labor laws.
What is the SIO Expatriate Gratuity System in Bahrain?
Pursuant to Decree-Law No. 14/2022 and Ministerial Resolution No. 109/2023, Bahrain introduced a reformed gratuity framework administered through the Social Insurance Organization (SIO). Employers pay monthly statutory contributions into an SIO-managed account (4.2% of basic wage for the first 3 years and 8.4% for subsequent years), ensuring that expatriate gratuity funds are secured against employer insolvency.
Is indemnity calculated on basic salary or total gross salary in Bahrain?
Under Article 116, End of Service Indemnity is calculated strictly on the employee's last basic wage (الأجر الأساسي), excluding allowances such, transportation, and telephone subsidies, unless the employment contract explicitly specifies a more favorable comprehensive calculation basis.
Under what circumstances can an employer forfeit indemnity under Article 107?
Under Article 107 of Law No. 36/2012, an employer may terminate a worker without notice or indemnity only for gross statutory violations, including assuming a false identity, causing substantial material loss to the employer intentionally, continuous failure to observe occupational safety rules despite written warning, unjustified absence exceeding 20 non-consecutive days or 10 consecutive days in a year, or conviction of a crime involving dishonesty.
