Quick answer: Bahrain's award is half a month's wage for each of the first three years and one month's wage for each later year: 7 years on 500 BHD gives 3 × ½ × 500 + 4 × 500 = 2,750 BHD.
How it's calculated
Article 116 gives a worker who is not covered by the Social Insurance Law half a month's wage for each of the first three years and one month's wage for each later year, with parts of a year in proportion. Article 47 bases it on the last basic wage plus any social allowance. There is no minimum service and no reduction for resigning.
Since 1 March 2024 (Resolution No. 109 of 2023), employers pay monthly contributions for non-Bahraini workers to the Social Insurance Organization (SIO): 4.2% of wage for the first three years and 8.4% after. The SIO pays the award for service from that date with the same formula on the last wage. Service before 1 March 2024 is still owed by the employer under the Labour Law.
The calculator works out the award for your whole service, then splits it: the employer's part is the award for the service up to 29 February 2024, and the SIO part is the rest, so the higher rate after three years carries on across the change. Service runs from your first to your last working day, both counted, as years + months ÷ 12 + days ÷ 365.
Need it in words? Use Bahraini dinar tafqit.
Worked examples
- 7 years from 1 Mar 2019, wage 500 BHD: 3 × ½ × 500 + 4 × 500 = 2,750.000 BHD
- Employer part (5 years to 29 Feb 2024): 750 + 2 × 500 = 1,750.000; SIO part 1,000.000
- 2 years, wage 400 BHD: 2 × ½ × 400 = 400.000 BHD
Who this covers
Non-Bahraini workers in Bahrain's private sector, except GCC nationals, who are covered by the GCC social-insurance extension. Bahraini workers are covered by social insurance (pension) instead of this award. Domestic workers and other groups follow their own rules.
Frequently asked questions
How is end of service calculated in Bahrain?
Half a month's wage per year for the first three years and one month's wage per later year, with parts of a year in proportion, on the last basic wage plus any social allowance.
Who pays it since March 2024?
The SIO pays for service from 1 March 2024, funded by the employer's monthly contributions. The employer still pays directly for service before that date.
Do I lose it if I resign?
No. Neither Article 116 nor the SIO system reduces the award for resignation.
Are housing and transport allowances included?
No. Article 47 uses the last basic wage plus the social allowance only.
Do parts of a year count in Bahrain?
Yes. Parts of a year are paid in proportion, so six extra months earn half of that year's amount.
How much is the award for 3 years of service?
Half a month's wage for each of the three years. On a 500 BHD wage that is 3 × ½ × 500 = 750 BHD.