HisabCalc › Country-specific

Bahrain Gratuity Calculator

Computes Bahrain end-of-service indemnity for a worker not covered by social insurance, at half a month of wage per year for the first three years and one month per year after.

Enter your numbers

Monthly basic salary (BHD)

Example: 325

Years of service

Example: 7.5

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

indemnity = min(yearsOfService, 3) * basicSalary * 0.5 + max(0, yearsOfService - 3) * basicSalary

How the calculation works

Bahrain values the first three years of service at half a month of wage each and every year after that at a full month, so the benefit nearly doubles in rate after year three.

The calculation uses the last basic wage, and only the social allowance is added to it, which keeps most of the package outside the indemnity base.

Because the rate jumps at three years, the total is very sensitive to whether someone crosses that boundary before leaving.

Common mistakes

Adding all allowances to the wage overstates the indemnity, since Bahrain includes only the basic wage and the social allowance.
Assuming the flat one-month rate applies from the first year overstates the benefit for anyone with less than three years of service.

When to use it

Use it when an employment contract in Bahrain is ending and you need to verify the indemnity in the final settlement.
Use it to decide whether to complete three full years, because crossing that line lifts the accrual rate from half a month to a full month.

Worked example

A basic salary of 325 BHD with 7.5 years of service gives 3 years at half a month each (487.5 BHD) plus 4.5 years at a full month each (1462.5 BHD), an indemnity of 1950 BHD.

Gratuity 1,950.00

Common questions

What is the wage base for Bahrain end-of-service indemnity?

It uses the last basic wage plus any social allowance, and excludes other allowances such as housing and transport.

Last updated: 2026-10-04