UAE GratuityBahrain end-of-service indemnity
The Labour Market Regulatory Authority’s booklet on wages and indemnity (read on 13 November 2026) says the indemnity is a legal right of workers sponsored by a company or a household employer, paid at the end of service in addition to the last wage. For up to 3 years it is half a month’s wage for each year; after 3 years it is half a month’s wage for the first 3 years plus a full month’s wage for each later year.
Examples
| Monthly wage | 1 year | 3 years | 5 years | 10 years | 20 years |
|---|---|---|---|---|---|
| BHD 150 | BHD 75.0 | BHD 225.0 | BHD 525.0 | BHD 1,275.0 | BHD 2,775.0 |
| BHD 300 | BHD 150.0 | BHD 450.0 | BHD 1,050.0 | BHD 2,550.0 | BHD 5,550.0 |
| BHD 500 | BHD 250.0 | BHD 750.0 | BHD 1,750.0 | BHD 4,250.0 | BHD 9,250.0 |
| BHD 800 | BHD 400.0 | BHD 1,200.0 | BHD 2,800.0 | BHD 6,800.0 | BHD 14,800.0 |
| BHD 1,200 | BHD 600.0 | BHD 1,800.0 | BHD 4,200.0 | BHD 10,200.0 | BHD 22,200.0 |
Which wage is used
Article 47 of Law No. 36 of 2012 as consolidated by the Legislation and Legal Opinion Commission (English text with amendments, read on 13 November 2026) says leaving-indemnity entitlements are calculated on the worker’s most recent basic wage plus the social allowance, if any; for piece-rate or production workers, or pay with a commission, on the average wage of the last three months.
Who pays
From March 2024 private-sector employers pay monthly contributions to the Social Insurance Organization (SIO) for expatriate workers’ indemnity; the SIO pays the worker within 10 working days of the claim. Service before March 2024 is the employer’s to pay directly, in a lump sum after the contract ends. Late contributions carry extra charges set out in the booklet.
Limits of this page
This is the regulator’s explanation, not the text of Law No. 36 of 2012, whose article numbers were not read here. The SIO contribution rates and Bahraini nationals’ social insurance are not covered.
Common questions
How is the end-of-service indemnity worked in Bahrain?
Per the LMRA’s booklet: for up to 3 years, half a month’s wage for every year; beyond 3 years, half a month’s wage for each of the first 3 years plus a full month’s wage for each later year. It is paid in addition to the last wage.
Does the LMRA give an example?
Yes. A worker on BHD 420 a month with 55 months of service gets BHD 630 for the first 3 years plus BHD 665 for the following 19 months, BHD 1,295 in all; the calculator on this page reproduces that figure and the LMRA’s BHD 93.75 example.
Who pays it?
The LMRA says that from March 2024 private-sector employers pay monthly contributions to the Social Insurance Organization, which pays the worker after resignation or the end of the contract; for service before March 2024 the employer pays directly. Domestic workers are paid by their employer at the end of the contract.
Sources
- Labour Market Regulatory Authority (Bahrain) and IOM, "Wages and Indemnity: a guide for all expatriate workers and employers", lmra.gov.bh, read on 13 November 2026.
- Legislation and Legal Opinion Commission (Bahrain): Labour Law for the Private Sector, Law No. 36 of 2012 consolidated English text with amendments, Article 47, read on 13 November 2026.
Rules read on 13 November 2026. Laws change and your contract may give more than the minimum. This site is independent, not connected with any government, and gives arithmetic, not legal advice.