🇧🇠Bahrain gratuity calculator 2026
Estimated gratuity · 🇧🇠Bahrain
BHDÂ 1,406
Service: 5 years
- Before 1 Mar 2024 (employer): 3 yrs × half month
- BHDÂ 600.00
- Before 1 Mar 2024 (employer): 0.16 yrs × 1 month
- BHDÂ 63.96
- From 1 Mar 2024 (SIO): 22.1 months × 8.4%
- BHDÂ 741.92
Wage used: BHD 400.00/month · Daily rate: BHD 13.33 (÷30)
Sending it home?
…
Mid-market rate. Banks and exchange houses often add 1 to 3% in hidden fees.
We may earn a commission from these links at no cost to you. Rates by ExchangeRate-API.
Leaving your job? Add leave, notice pay and deductions in the Bahrain final settlement calculator.
How gratuity works in Bahrain
- Service before 1 March 2024: half a month's wage per year for the first 3 years, then one month per year. Paid by your employer.
- Service from 1 March 2024: your employer pays monthly contributions to SIO (4.2% of wage in your first 3 years of service, 8.4% after). SIO pays you this part.
- Part years are paid pro rata.
If you resign
There is no reduction for resigning under the current system.
Good to know
- The SIO part is based on contributions actually paid. If your employer missed payments, the real amount can differ.
Gratuity examples in BHD
Employer ended the contract, salary used for gratuity, no unpaid leave.
| Monthly salary | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BHDÂ 200.00 | BHDÂ 100.80 | BHDÂ 301.87 | BHDÂ 703.47 | BHDÂ 1,704 |
| BHDÂ 400.00 | BHDÂ 201.60 | BHDÂ 603.73 | BHDÂ 1,407 | BHDÂ 3,407 |
| BHDÂ 700.00 | BHDÂ 352.80 | BHDÂ 1,057 | BHDÂ 2,462 | BHDÂ 5,963 |
| BHDÂ 1,200 | BHDÂ 604.80 | BHDÂ 1,811 | BHDÂ 4,221 | BHDÂ 10,222 |
| BHDÂ 2,000 | BHDÂ 1,008 | BHDÂ 3,019 | BHDÂ 7,035 | BHDÂ 17,037 |
Gratuity by years of service
Frequently asked questions
How is gratuity calculated in Bahrain?
Service before 1 March 2024: half a month's wage per year for the first 3 years, then one month per year. Paid by your employer. Service from 1 March 2024: your employer pays monthly contributions to SIO (4.2% of wage in your first 3 years of service, 8.4% after). SIO pays you this part. Part years are paid pro rata.
Do I get gratuity if I resign in Bahrain?
There is no reduction for resigning under the current system.
Are allowances included in gratuity?
Use the monthly wage your employer registered with SIO (usually basic plus fixed allowances).
Is the daily wage based on 30 days or 365 days?
Bahrain uses the monthly wage divided by 30 to get a daily wage.
Which law is this based on?
Labour Law No. 36 of 2012, Article 116, and the SIO gratuity system from 1 March 2024. Enforced by the Social Insurance Organization (SIO) and LMRA. Last checked by us on 5 October 2026.
Sources
Labour Law No. 36 of 2012, Article 116, and the SIO gratuity system from 1 March 2024. Last checked 5 October 2026.
- Lockton: Bahrain's new end of service gratuity for expatriates
- Mondaq: changes to the end-of-service system for foreign employees
This is an estimate, not legal advice. If your employer disagrees, contact the Social Insurance Organization (SIO) and LMRA.