Interactive Tool
Bahrain Leaving indemnity
Note
This calculator covers expat employees. Bahraini nationals are typically enrolled in the Social Insurance Organization (SIO) pension scheme instead of leaving indemnity.
Estimate based on Bahrain Private Sector Labour Law (Law No. 36 of 2012), Article 116. Actual amounts depend on contract terms, leave taken, unpaid wages, and other adjustments. Consult your employer's HR or a licensed labour lawyer for your specific situation.
Worked examples: Bahrain leaving indemnity
Precomputed grid using the Bahrain Private Sector Labour Law (Law No. 36 of 2012), Article 116 formula. Read the row for your monthly wage and the column for your years of service. Use the interactive calculator above for cases in between.
| Monthly wage (BHD) | 1 year | 2 years | 3 years | 5 years | 10 years | 15 years |
|---|---|---|---|---|---|---|
| BHD 500 | BHD 250.000 | BHD 500.000 | BHD 750.000 | BHD 1,750.000 | BHD 4,250.000 | BHD 6,750.000 |
| BHD 1,000 | BHD 500.000 | BHD 1,000.000 | BHD 1,500.000 | BHD 3,500.000 | BHD 8,500.000 | BHD 13,500.000 |
| BHD 2,000 | BHD 1,000.000 | BHD 2,000.000 | BHD 3,000.000 | BHD 7,000.000 | BHD 17,000.000 | BHD 27,000.000 |
| BHD 4,000 | BHD 2,000.000 | BHD 4,000.000 | BHD 6,000.000 | BHD 14,000.000 | BHD 34,000.000 | BHD 54,000.000 |
Rounded to the 3rd decimal. General information only; check the current text of the Bahrain Private Sector Labour Law (Law No. 36 of 2012), Article 116 and consult a labour-law adviser for your actual case.
Use this free calculator to estimate your Bahrain leaving indemnity. Enter your monthly wage (basic salary plus regular allowances) and length of service for an instant estimate based on Bahrain Private Sector Labour Law (Law No. 36 of 2012), Article 116.
How Bahrain leaving indemnity is calculated
Bahraini labour law provides a leaving indemnity to non-Bahraini employees in the private sector. Bahraini citizens are covered by the Social Insurance Organization (SIO) pension scheme instead.
Rules under Bahrain Private Sector Labour Law (Law No. 36 of 2012), Article 116
- Applies to non-Bahraini private-sector employees
- Bahraini nationals receive SIO pension contributions instead of leaving indemnity
- First 3 years: half-month wage per year of service
- Years 3 and above: one-month wage per year of service
- Base is wage including regular allowances, not basic salary alone
- No statutory resignation reduction - paid regardless of who initiates the end
- Pro-rated for fractions of a year
What counts as wage (basic salary plus regular allowances) in Bahrain?
Bahraini labour law calculates leaving indemnity on the full wage, including regular allowances. This is the same base Bahrain uses for most labour-law calculations.
If your employment contract bundles a single salary figure with no separate basic/allowance breakdown, ask HR to confirm in writing how the wage (basic salary plus regular allowances) will be calculated for end-of-service purposes before you sign.
Worked example
A non-Bahraini employee with a wage of BHD 1,500 (basic + regular allowances) leaving after 5 years:
| First 3 years | 3 × (BHD 1,500 / 2) = BHD 2,250 |
| Remaining 2 years | 2 × BHD 1,500 = BHD 3,000 |
| Total indemnity | BHD 5,250 |
Frequently asked questions
Official source
For the full legal text, see: Bahrain Private Sector Labour Law (Law No. 36 of 2012), Article 116.
This page is general information, not legal advice. For your specific contract, consult a licensed labour lawyer or the relevant ministry.