What is the Bahrain SIO scheme for end of service?

From March 2024, Bahrain introduced a new end-of-service system where employers contribute to a fund held by the Social Insurance Organisation (SIO) on behalf of each employee. Employers pay 4.2% of monthly salary for the first 3 years of the new scheme, rising to 8.4% thereafter.

Does the old Bahrain gratuity (indemnity) still apply?

Yes — for service before March 2024. If your employment started before 1 March 2024, you are entitled to a legacy indemnity calculated at 15 days of basic salary per year of service up to that date. Your service from March 2024 onwards is covered by the new SIO scheme.

What is the difference between 4.2% and 8.4% in the Bahrain SIO scheme?

Under the new SIO scheme, employers contribute 4.2% of your total monthly salary (basic + allowances) for the first 36 months of the new scheme period (counting from March 2024). After 36 months, the rate doubles to 8.4% per month. The threshold is based on time elapsed since the scheme started (March 2024), not your total years of employment.

Is the SIO fund balance the same as what this calculator shows?

Not necessarily. This calculator shows the estimated employer contributions based on the official rates. Your actual SIO fund balance may differ because the SIO invests the contributions on your behalf. To check your actual balance, contact the Social Insurance Organisation of Bahrain directly.

What salary is used for Bahrain EOSB calculation?

Two salary figures apply. For the legacy indemnity (pre-March 2024), only your basic salary is used. For the new SIO scheme (post-March 2024), your total monthly salary including all allowances (housing, transport, etc.) is used as the contribution base.

What is the minimum service to qualify for Bahrain EOSB?

You need a minimum of 1 year of continuous service to qualify for Bahrain EOSB under the Labour Law 2012.

Bahrain/EOSB Calculator

Bahrain EOSB Calculator 2026

Calculate your Bahrain End of Service Benefit instantly. Covers both the legacy indemnity (pre-March 2024) and the new Social Insurance Organisation (SIO) scheme (post-March 2024). Free, no sign-up required.

Split calculation applies. Bahrain changed its end-of-service system in March 2024. If your employment spans this date, your EOSB has two parts: (1) the legacy indemnity at 15 days/year on basic salary for service before March 2024, and (2) an employer contribution estimate under the new SIO scheme from March 2024 onwards.

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Bahrain EOSB Formula

Legacy Indemnity (pre-March 2024)

• 15 days of basic salary per year of service
• Applies to service before 1 March 2024
• Basic salary only (no allowances)

New SIO Scheme (post-March 2024)

• Months 1–36: 4.2% of total monthly salary/month
• Months 37+: 8.4% of total monthly salary/month
• Total salary including allowances
• Fund held by SIO — shown as estimate

General

• Minimum: 1 year continuous service
• Currency: BHD

Frequently Asked Questions

What is the SIO scheme?

From March 2024, employers contribute a percentage of each employee's salary to a fund held by the Social Insurance Organisation. The fund accumulates monthly and is paid out when employment ends.

Does my old gratuity still apply?

Yes — for service before March 2024, the legacy 15 days/year indemnity applies to your basic salary. This is calculated separately and added to the new scheme estimate.

Why is the SIO figure an estimate?

The SIO invests contributions on your behalf. Your actual balance reflects investment performance. This calculator shows the employer contribution amount — contact the SIO for your exact balance.

Does the 4.2% / 8.4% threshold reset with my employment?

No. The threshold is based on months elapsed since the SIO scheme started (March 2024), not your total employment tenure. Everyone hit the 8.4% rate from March 2027 onwards, regardless of when they were hired.