How Bahrain gratuity is calculated
The indemnity is calculated on your last basic salary (plus social allowance if you receive one). You earn half a month for each of the first 3 years of service and one full month for every year after that, with part years paid pro-rata. Termination by the employer pays the full amount. Resigning pays nothing under 3 years, one third between 3 and 5 years, and the full amount after 5 years. Since 1 March 2024, expat gratuity is collected through the Social Insurance Organisation (SIO), which employers fund monthly at 4.2% of wages for the first 3 years and 8.4% after.
Worked example
Basic salary BHD 600, 6 years of service, terminated: first 3 years = 1.5 months, next 3 years = 3 months, total 4.5 months × BHD 600 = BHD 2,700.
Frequently asked questions
How is Bahrain gratuity calculated?
Half a month of basic salary for each of the first 3 years, then one month for each following year, pro-rata for part years.
Who pays Bahrain expat gratuity now?
Since March 2024, employers pay monthly contributions to the Social Insurance Organisation (SIO), and you claim your gratuity from the SIO when you leave.
Do I get gratuity if I resign in Bahrain?
Yes if you have served long enough: nothing under 3 years, one third from 3 to 5 years, and the full indemnity after 5 years.
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