How to use the Bahrain gratuity calculator
- Enter your first day of work with your current employer. Leave Still working here ticked to see what you have built up so far, or untick it and add your last working day.
- Enter your basic salary a month in BHD. Open the salary breakup if you receive a social allowance. You can also list housing, transport and other allowances for your report; they do not change the gratuity.
- Add earlier contracts with the same employer if you had any, and tick the box if you were moved by a branch transfer or a change of owner.
- Add the SIO contributions paid for you only if you know the figure. Most workers do not, and the calculator works without it.
The result shows the estimated gratuity, the part for service before 1 March 2024 and the part from that date, and every step with the article it comes from. Download PDF report gives you an A4 summary to keep or to show when you ask about your gratuity. Nothing you type is saved or sent.
The rule: half a month, then a full month, for each year
Resolution No. 109 of 2023 was issued on 12 December 2023 and came into force on 1 March 2024. It governs the end-of-service gratuity of non-Bahraini workers in the private sector. Article 9 gives half a month's wage for each of the first three years of service and one month's wage for each of the following years. Fractions of a year count pro rata (in the Arabic text, عن كسور السنة).
| Years of service | Months of wage | On a BHD 400 basic |
|---|---|---|
| 1 | 0.5 | BHD 200.000 |
| 2 | 1 | BHD 400.000 |
| 3 | 1.5 | BHD 600.000 |
| 5 | 3.5 | BHD 1,400.000 |
| 10 | 8.5 | BHD 3,400.000 |
Example: a basic wage of BHD 400 from 1 March 2021 to 1 March 2026 is 5 years. The first three years give 3 × 0.5 × 400 = BHD 600. Years 4 and 5 give 2 × 1 × 400 = BHD 800. The total is BHD 1,400.000.
The higher rate applies to the years after the third only. Years 1 to 3 stay at half a month's wage however long you stay.
Service before and after 1 March 2024
Article 14 of the Resolution says service before 1 March 2024 falls under Labour Law No. 36 of 2012, and that part of the gratuity is paid by the employer. The part for service from 1 March 2024 is paid by the Social Insurance Organisation (SIO). The calculator works out the whole gratuity first, then splits it at 1 March 2024, so the two parts always add up to the total.
The three-year clock runs from your first day with the employer (Resolution Arts. 5, 8 and 9), not from 1 March 2024. This is the most common calculator mistake. Restarting the clock on 1 March 2024 pays later years at half a month's wage instead of a full month, which gives too little.
Example: a basic wage of BHD 400 from 1 January 2022 to 1 January 2027 is 5 years, so the total is BHD 1,400.000. Up to 1 March 2024 there are 2 years and 60 days, all in the first three years: 2 × 0.5 × 400 = BHD 400, plus 60 ÷ 365 × 0.5 × 400 = BHD 32.877. The employer part is BHD 432.877 and the SIO part is the rest, BHD 967.123.
What counts as wage
The wage for gratuity is the basic wage plus social allowance (Resolution Art. 1 and Labour Law Art. 47). Housing, transport, food and other allowances are not counted. The social allowance is a Bahraini allowance, so for most expatriates the gratuity base is the basic wage alone.
The gratuity is worked out on your last wage (Resolution Art. 10), not the wage you started on. If you are paid by commission or piece rate, the wage is the average of your last three months.
No minimum service period
Article 9 sets no minimum period of service. A part year counts pro rata from the first day. Example: BHD 320 basic from 1 January 2025 to 1 August 2025 is 212 days, so the gratuity is 212 ÷ 365 × 0.5 × 320 = BHD 92.932.
Earlier contracts, transfers and a change of owner
Under Labour Law Art. 118, contracts with the same employer separated by less than 30 days count as continuous service. Under Resolution Arts. 6 and 7, a branch transfer or a change of owner does not end service. In both cases the gratuity is worked out from the first day of the earliest contract that joins up, and the three-year clock starts there too.
The contributions cap
Article 10 says the gratuity is paid at the end of service, worked out on the last wage, and not more than the contributions paid for the worker. Employers pay contributions to the SIO of 4.2% of the monthly wage for each of the first three years and 8.4% after that (Resolution Art. 5).
Workers usually cannot see the contributions figure on the SIO portal, so the calculator shows the formula figure and says that only the SIO holds the contributions total. If you know it, enter it and the calculator applies the limit. SIO contributions are calculated on wages up to BHD 4,000 a month. Whether this ceiling applies to expatriates is not confirmed, so the cap may matter for a wage above it.
How to claim your gratuity
- The SIO part (service from 1 March 2024): apply online on the SIO website after your job ends, using an advanced-level eKey. There is no fee, and the SIO says payment is made within 5 working days. Check that the SIO has your correct bank details first.
- The employer part (service before 1 March 2024): this is paid by your employer under Article 14.
- If an employer does not pay its part, the worker may make a complaint to the LMRA Expat Protection Centre in North Sehla.
Keep the PDF report with your contract and payslips. It shows how each figure was worked out, which makes any question about the amount easier to discuss.
Questions and answers
Is gratuity paid if I resign in Bahrain?
The formula in Resolution No. 109 of 2023 has no reduction for resignation. It gives half a month's wage for each of the first three years of service and one month's wage for each year after, with part years pro rata.
Do I get gratuity if I worked less than a year?
Yes. Article 9 sets no minimum service period, and part years count pro rata. For example, 212 days on a BHD 320 basic gives BHD 92.932.
Is housing allowance included in gratuity?
No. The wage for gratuity is the basic wage plus social allowance only. Housing, transport and other allowances are not counted.
Who pays my gratuity, the employer or the SIO?
Both, for different parts of your service. The part for service before 1 March 2024 is paid by the employer (Resolution Art. 14). The part from 1 March 2024 is paid by the Social Insurance Organisation.
How much gratuity do I get for 5 years in Bahrain?
3.5 months of your last wage: half a month for each of the first three years and one month for years 4 and 5. On a BHD 400 basic that is BHD 1,400.000.
Why does another calculator give a lower figure?
Often because it restarts the three-year clock on 1 March 2024. The clock runs from your first day with the employer, so years after the third are paid at one month's wage. Check also that both use the same wage: basic plus social allowance, on your last wage.
Sources
Checked on 24 September 2026. If a rule has changed, please tell us.