Bahrain End of Service Gratuity 2026 — SIO vs Employer

Home › Bahrain

Bahrain End-of-Service Gratuity & Expat Money Rights

Bahrain changed who pays your gratuity in 2024 — and almost nobody’s content caught up. The formula (Article 116, Law No. 36 of 2012) is unchanged, but since 1 March 2024, employers fund it through monthly SIO contributions. Service before that date is still claimed from your employer; service after, from the SIO. Our calculator splits the two automatically.

Manama, Bahrain skyline at night with the Bahrain World Trade Center
Manama, Bahrain. Photo: Pexels (free license).

The one-minute version

  • Formula: ½ month’s wage/yr for the first 3 years, 1 full month’s wage/yr after.
  • Wage basis: basic wage + social allowance (housing/transport excluded).
  • Cap: none. Resignation: no reduction.
  • Who pays: pre–1 Mar 2024 service → employer; post–1 Mar 2024 → SIO (Edict 109/2023).
  • Who qualifies: expatriates not covered by the Social Insurance Law (Bahrainis get the SIO pension instead).

Calculate my Bahrain gratuity

Bahrain tools & guides

Bahrain gratuity calculator

Article 116 tool with the pre/post–March 2024 employer-vs-SIO split built in — the only calculator that handles the transition.

Gulf comparison

Bahrain vs Saudi Arabia, UAE, Qatar, Kuwait and Oman — formulas, caps, wage bases and who pays.

The 2024 change, plainly

Before March 2024, your employer owed you a lump sum at exit. Now the employer pays 4.2% of monthly wages (years 1–3) and 8.4% (year 4+) into the SIO every month, and you claim the accumulated amount from the SIO when you leave. One wrinkle to watch: if your wages rose after March 2024, the contributions may undershoot the final Article 116 formula — whether the employer owes the difference is still unresolved (“further regulations expected”). Register your bank details with the SIO so the payout can reach you.

Frequently asked questions

How is Bahrain end-of-service gratuity calculated?

Under Article 116 of Law No. 36 of 2012: half a month’s wage per year for the first 3 years, then one full month’s wage per year after that. The wage basis is basic salary plus social allowance. There is no cap and no resignation reduction.

Who pays my Bahrain gratuity — my employer or SIO?

Since 1 March 2024 (Edict 109/2023), employers pay monthly SIO contributions instead of a lump sum at exit. Service before 1 March 2024 is still claimed from your employer; service from that date is claimed from the Social Insurance Organization (SIO).

Does resigning reduce Bahrain gratuity?

No. Article 116 makes no distinction by mode of separation. Websites claiming “partial gratuity” for resigners contradict the statute.

Are allowances included in Bahrain gratuity?

Basic wage plus social allowance, if any. Housing and transport allowances are excluded.

Related: compare all six Gulf countries · Oman calculator · Saudi EOSB calculator

AFFILIATE PLACEHOLDER: “Recommended services” section goes here once affiliate relationships exist. No affiliate links yet — do not invent any.

Not legal advice. This page summarizes Article 116 of Bahrain’s Labour Law No. 36 of 2012 and the SIO regime under Edict 109/2023, as of October 2026. The pre/post-2024 liability boundary is still evolving — verify with the Social Insurance Organization (sio.gov.bh) or Bahrain’s Ministry of Labour.