End of Service Benefit Calculator for Bahrain
Estimate your Bahrain end of service benefit under the Social Insurance Organisation scheme that started in March 2024. You accrue half a month of wage for each of the first three years, then a full month for every year after that.
Bahraini End of Service Calculator
Leaving Indemnity Resolution No. 109 of 2023 (SIO scheme)
The basics
What is end of service benefit in Bahrain?
Bahrain pays expatriate private sector workers an end of service benefit, sometimes called leaving indemnity or end of service reward, when their employment ends. Since March 2024 the way it is funded has changed under the Leaving Indemnity Resolution of 2023.
Instead of the employer holding the money until you leave, employers now pay monthly contributions to the Social Insurance Organisation, known as the SIO, which pays your benefit at the end. The amount you build up follows the same accrual as before, and you claim it from the SIO rather than from your employer for service since the scheme began.
- Half a month of wage per year for the first three years
- One full month of wage per year after three years
- Funded by monthly SIO contributions since March 2024
- Applies to expatriate private sector workers
- Leaving Indemnity Resolution No. 109 of 2023
- Contributions of 4.2 then 8.4 percent a month
- Resignation does not reduce the benefit
The formula
How the Bahrain end of service benefit is calculated
The benefit builds up at two rates based on your length of service.
Your first three years
You accrue half a month of wage for each completed year in this band.
0.5 month of wage per yearEvery year after three
From year four onward the rate rises to one full month of wage for each year.
1 month of wage per yearUnder the SIO scheme this is collected as 4.2 percent of your monthly wage in the first three years and 8.4 percent after that, which add up to the same yearly accrual shown above.
How it is paid
Service before and after March 2024
The SIO scheme applies from 1 March 2024. Service you completed before that date is paid directly by your employer using the same accrual rates, while service since then is funded through the SIO. So your total benefit is the sum of what your employer owes for the earlier period and what the SIO holds for the period since the scheme began.
The scheme covers expatriate private sector employees. Bahraini nationals are covered under the social insurance pension system rather than this benefit. When you leave, you apply to the SIO for the funded part, which is a change worth knowing so you claim from the right place.
Reason for leaving
How the reason for leaving changes your benefit
Termination, resignation or expiry
Ending by the employer, resigning, or reaching the end of a fixed term all pay the full benefit. Resignation does not reduce it for expatriate workers.
Before and after March 2024
Service before the scheme is paid by your employer, and service since is funded through the SIO. The tool shows the full accrual across both.
Dismissal under Article 107
A lawful dismissal for gross misconduct under Article 107 can remove the benefit, where the employer proves the cause.
Know your rights
Your end of service is a legal right in Bahrain
Under the Leaving Indemnity Resolution and the Labour Law, your end of service benefit must be paid when your employment ends, either by the SIO for recent service or by your employer for earlier service. It is not discretionary, and knowing the correct figure first protects what you are owed.
If the benefit is withheld or looks wrong, you can raise the matter with the Social Insurance Organisation for the funded part, and with the Labour Market Regulatory Authority and the Ministry of Labour for wider labour complaints, which refer unresolved disputes to the courts. Keep your employment contract, your payslips and any resignation or termination letter to support your claim.
Every figure on this page is tied to the accrual set by the scheme and shown as a full breakdown, so you can compare the result with your settlement and raise any difference with confidence.
Simple to use
Work out your Bahraini end of service in four steps
Enter your monthly wage
Use your last monthly wage, the figure that the Bahrain SIO scheme bases the calculation on.
Add your dates
Enter your first and last working day. The tool measures your service to the exact day.
Choose the reason
Select how the job ended, since this can raise or remove part of the amount.
Read the breakdown
See your total plus a line by line breakdown and the exact rule that produced it.
Why trust this tool
Built for accuracy, not guesswork
End of service in Bahrain is a your money topic, so every figure here is tied to the law and shown in full.
Reviewed by a specialist
Formulas and legal references are checked by a GCC labour and HR specialist.
Tied to official law
The Bahrain SIO scheme is the source, with links to the SIO and the LMRA so you can verify it.
Full breakdown
You see how the figure is built, not just a single number, so you can check it.
Kept up to date
We revisit the rules when the law changes, so the calculation stays current.
Private by design
Your salary and dates stay in your browser. Nothing you enter is sent or stored.
Free and instant
No sign up and no fees. Get your result the moment you enter your details.
Worked example
A real example for Bahrain
How the numbers come together for a typical seven year service, ended by the employer.
An employee on a BHD 700.000 monthly wage who worked from January 2018 to December 2024, about seven years, receives the following under Leaving Indemnity Resolution No. 109 of 2023 (SIO scheme).
| Part of the calculation | Amount |
|---|---|
| First 3 years at half a month wage per year | BHD 1,050.000 |
| Years beyond 3 at one month wage per year | BHD 2,800.480 |
| Estimated total | BHD 3,850.480 |
Enter your own wage and dates in the calculator above for a figure based on your service.
Frequently asked questions
How is end of service calculated in Bahrain now?
You accrue half a month of wage for each of the first three years, then one full month of wage for each year after three. Since March 2024 this is funded through monthly employer contributions to the SIO.
What are the SIO contribution rates?
Employers pay 4.2 percent of the monthly wage each month for the first three years and 8.4 percent after that. Over a year these equal half a month and one full month of wage.
What about my service before March 2024?
Service completed before 1 March 2024 is paid directly by your employer using the same accrual, while service after that date is funded through the SIO scheme.
Does resignation reduce the Bahrain end of service benefit?
No. Resignation does not reduce the benefit for expatriate workers under the current scheme.
Who is covered by the Bahrain SIO end of service scheme?
The scheme covers expatriate private sector workers. Bahraini nationals are covered under the social insurance pension system.
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