Bahrain End of Service Gratuity: How It's Calculated

ยท 1 min read ยท Employment & Gratuity

Bahrain's end-of-service gratuity follows a two-tier formula similar in structure to Saudi Arabia's, but with its own thresholds. Here's what to know before you calculate yours.

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The formula

Under Bahrain's Labour Law for the Private Sector, gratuity is calculated as half a month's wage for each of your first 3 years of service, and one full month's wage for each year after that.

Resignation reduces the amount

As in several GCC countries, resigning before completing 10 years reduces what you're owed on a sliding scale: nothing under 3 years, roughly a third of the full amount between 3-5 years, and roughly two-thirds between 5-10 years. Being terminated by your employer (without cause attributable to you) generally entitles you to the full amount regardless of tenure.

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Frequently asked questions

Does gratuity apply to all employees in Bahrain?
Most private-sector employees are covered, though specific categories may have different rules โ€” check your contract and the current Labour Law provisions.

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