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Free tool

End-of-service gratuity calculator for Bahrain.

Enter a salary and length of service to see what is payable under Bahrain rules, including how resignation changes the entitlement.

Bahrain has moved end-of-service to monthly contributions rather than a lump sum. This calculator covers service under the previous formula only - for service since the change, the obligation is the monthly contribution, not an amount payable at the end.

Gratuity here is calculated on basic salary only - allowances are excluded.

Part years count - enter 3.5 for three and a half years.

Reason for leaving

This market pays the full entitlement regardless of the reason for leaving.

Service bandYearsDays/yrAmount
Years 0-3315BHD 15,000.00
Years 3+230BHD 20,000.00
Accrued gratuityBHD 35,000.00
Payable now
BHD 35,000.00

These rules are pending in-market verification and this page is excluded from search until that is complete. Do not rely on the figures for a live settlement yet.

How Bahrain calculates it

  • From 2024 Bahrain moved end-of-service from a lump sum to monthly employer contributions paid to the Social Insurance Organisation (SIO).
  • Service before that change is still settled on the old formula: 15 days' wage per year for the first three years, then a month per year.
  • For service from the change onward there is no lump sum to calculate - the obligation is the monthly SIO contribution.

Rules as of not yet verified. Confirm current entitlements with Bahrain SIO. This calculator is a guide, not legal advice.

FAQ

Gratuity questions in Bahrain.

How is end-of-service gratuity calculated in Bahrain?

From 2024 Bahrain moved end-of-service from a lump sum to monthly employer contributions paid to the Social Insurance Organisation (SIO).

Which salary is gratuity based on in Bahrain?

Basic salary only. Allowances such as housing and transport are excluded from the calculation.

Does resigning reduce gratuity in Bahrain?

No. The full entitlement is payable regardless of whether the employee resigns or is terminated.

Does Magnar calculate end-of-service automatically?

Yes. Magnar accrues end-of-service continuously per employee under Bahrain rules, so the liability is visible on the balance sheet before anyone leaves, and settles it correctly on the final pay run.

Localization

Run Bahrain payroll end to end

Magnar accrues end-of-service continuously, so the liability is never a surprise.

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See it inside a real pay run.

Magnar accrues and settles end-of-service automatically, per country, per employee.

End of Service Gratuity Calculator Bahrain | Magnar