End-of-service calculator
Bahrain indemnity calculator
Enter the wage and the service dates. The amount shows as you type, split between what the employer pays and what SIO pays.
End-of-service benefit
Fill these in to see the benefit:
- Last monthly wage
- First day of service
- Last working day
Figures follow the articles cited and are an estimate for guidance.
Sources (3)
- Bahrain Private Sector Labour Law, Article 116
- Bahrain Private Sector Labour Law, Article 47
- Prime Minister’s Resolution 109 of 2023, Articles 5, 8 to 10 and 14
Service is counted in Gregorian years (Article 3), last working day included.
In Dawmt you start by picking the employee, the reason and the last day
Their wage, allowances and start date are already on their record, so nothing is retyped. The same screen can include leave encashment and a share of the flight ticket.
Book a demoWe last checked these rules against the official texts on 5 October 2026.
How the indemnity is worked out in Bahrain
Article 116 of the Private Sector Labour Law works the leaving indemnity out on the last wage: half a month’s wage for each of the first three years, and a month’s wage for each year after that. Part years count pro rata.
It is for employees not covered by the Social Insurance Law, which in practice means most expatriate workers; Bahrainis are covered by social insurance instead. How the job ended makes no difference: resigning pays the same as a contract running out.
For the step-by-step guide with the full texts: how the end-of-service benefit is calculated.
What changed on 1 March 2024
Since 1 March 2024, employers pay end-of-service contributions for the expatriate workers it covers to the Social Insurance Organization (SIO), and SIO pays the indemnity for service from that date (Prime Minister’s Resolution 109 of 2023). Service before it is still paid by the employer under Article 116.
SIO works its part out on the last wage, but never pays more than the contributions actually paid for the employee. So the calculator shows SIO’s part as a maximum and splits what each side pays.
Worked examples on a 600 BHD wage
Worked out by this calculator, on a wage of 600 BHD a month:
| Service | How it ended | Benefit |
|---|---|---|
| 2 years | The contract term ran out | 600.000 BHD |
| 5 years | The employee resigned | 2,100.000 BHD |
| 6 years | The contract term ran out | Up to 2,700.000 BHD |
Which wage the indemnity is based on
The last basic wage plus social allowance, if any, leaving out other allowances such as housing and transport. For pay by piece, output or with commission, it is the average wage of the last three months (Article 47).
What this calculator leaves out
- Bahraini employees: covered by social insurance instead of this indemnity.
- Pay for unused leave and anything else due on leaving.
- Public sector staff: civil service rules apply.
Questions people ask
Does resigning reduce the indemnity in Bahrain?
No. Article 116 grants it when the contract ends without telling resignation apart, so the amount is the same whatever the reason.
Do Bahraini employees get an end-of-service indemnity?
Article 116 does not apply to anyone covered by the Social Insurance Law, and Bahrainis are, so social insurance provides for them instead.
Who pays the indemnity after March 2024?
The employer for service up to 29 February 2024, and SIO for service from 1 March 2024, up to the contributions paid (Resolution 109 of 2023).
Which wage is the indemnity worked out on?
The last basic wage plus any social allowance, without housing and other allowances. For pay by piece, output or with commission, the average wage of the last three months (Article 47).
How are part years counted?
Pro rata by days served (Article 116): six months after the first three years add about half a month’s wage.
Is service counted in Hijri or Gregorian years?
Gregorian (Article 3), last working day included.
End of service in Dawmt
The rest of an exit, in the same platform
The wage, allowances and start date are already on the employee’s record, so the benefit is worked out in payroll, under Employee Separation, with nothing retyped and no side spreadsheet.
- End-of-service settings that follow your company’s policy
- End the employee’s social insurance (GOSI) registration
- The final exit visa through Muqeem
- Payroll paid through Mudad and the WPS bank file
- The Wage Protection System (WPS) bank file