Money · المال

Bahrain End-of-Service Gratuity

Calculate the indemnity payable when leaving a Bahrain job - 3 weeks (21 days) per year throughout your service, with the 21-day-per-year rule applied throughout.

Last reviewed 27 April 2026· Source: Bahrain MADLSA - Labour Law No. 14 of 2004
Calculated on basic salary only - excludes housing, transport and other allowances. Total is capped at two years of salary. Resignation under one year forfeits the entitlement.
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How Bahrain gratuity works

Under Bahrain Labour Law No. 14 of 2004 (Article 54), every employee with at least one year of continuous service is entitled to end-of-service gratuity. The amount equals 21 days of basic pay per year for the first five years, then 21 days per year thereafter - and the total is capped at two years' total salary.

Daily wage equals (basic monthly salary × 12) ÷ 365. Resignation under the prior limited-contract regime reduces the payout: 0% under one year, 33.33% from one to three years, 66.67% from three to five, and 100% from five years onward. Termination always pays 100% from year one.

Worked example

An employee with a basic salary of BHD 12,000 resigns after 3.5 years. Daily wage is 12,000 × 12 ÷ 365 = BHD 394.52. Years 1-5 entitlement: 394.52 × 21 × 3.5 = BHD 28,997. Resignation reduction at 66.67% gives a final gratuity of BHD 19,331.

Quick formulas

Daily wage = basic × 12 ÷ 365.
Years 1-5: daily × 21 × min(years, 5).
Years 5+: daily × 30 × max(years − 5, 0).
Total = (Years 1-5 + Years 5+) × resignation factor, capped at basic × 24.

Frequently asked questions

How is Bahrain end-of-service gratuity calculated?
21 days of basic pay per year for years 1-5, then 21 days per year thereafter. The total is capped at two years' total salary.
Does resignation reduce my gratuity?
Under one year: 0%. One to three years: 33.33%. Three to five years: 66.67%. Five years and over: 100%. Termination always pays 100%.
Is gratuity based on basic salary or total salary?
Basic salary only - housing, transport and other allowances are excluded.
What is the maximum gratuity payout?
Two years of the employee's total salary, per Article 51 of the 2021 law.
Do part-time and remote workers get gratuity?
Yes - the 2021 law extended gratuity to part-time, temporary and flexible work models, prorated to working hours.

Reference only. This calculator implements the public formulas in Bahrain Labour Law No. 14 of 2004 (Article 54). It does not replace legal advice - always confirm with MoHRE or qualified counsel.