Calculate your Bahrain end-of-service indemnity (EOSB) 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.
BHD 0
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Before Mar 2024 (legacy)
15 days → 1 month / yr
Art. 116, first 3 years then after, on basic salary
From Mar 2024 (SIO fund)
4.2% → 8.4% / month
employer contribution on total salary, by length of service
The SIO portion is an estimate — confirm your actual fund balance with the SIO.
At-a-glance summary — enter your own figures in the calculator above for an exact, year-by-year breakdown.
Legacy Indemnity (pre-March 2024)
New SIO Scheme (post-March 2024)
General
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 Article 116 indemnity applies: 15 days/year of basic wage for the first three years, then one month/year. It 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.
When does the rate step up from 4.2% to 8.4%?
When you pass 3 years of service, counted from your hire date. The 4.2%/8.4% rates mirror the old Article 116 accrual (15 days then one month per year), so the boundary follows your tenure — not the date the scheme started. The SIO sets the exact schedule, so confirm your balance with them.
Bahrain changed its end-of-service model on 1 March 2024. Before that date, end of service was a legacy indemnity under Article 116 of the Labour Law (Law No. 36 of 2012) — 15 days of basic wage per year for the first three years, then one month per year, paid as a lump sum by the employer when you left. From March 2024 the system moved to monthly employer contributions into a fund held by the Social Insurance Organisation (SIO).
Under the SIO scheme the employer pays 4.2% of your total monthly salary(basic plus allowances) per month while you are within your first 3 years of service, then 8.4% after that. Those rates are simply the monthly equivalent of the old accrual, so the step-up follows your length of service— a worker already past three years when the scheme began contributes at 8.4% from the start. The SIO holds and invests the money, so the figure here is an estimate; your real balance is the one the SIO holds for you.
If your employment spans March 2024, your entitlement has two parts that this tool calculates separately and adds together: the legacy indemnity for the years before the cut-off, and the SIO contribution estimate for the months after it. Because the SIO invests the contributions, your real fund balance may differ from the contribution estimate — check it directly with the SIO. For the full assumptions, see our methodology page.
Example 1 — joined after the cut-off (SIO only)
Started March 2024, total monthly salary BHD 600, 12 months of service:
Example 2 — legacy portion (before the cut-off)
4 full years of service before March 2024, basic salary BHD 600 (daily rate BHD 600 ÷ 30 = BHD 20):
Example 3 — service that spans March 2024
Your total is simply the two parts added together: the legacy indemnity for the years up to 29 February 2024, plus the SIO contribution estimate for the months from March 2024 to your leaving date. The calculator above shows both lines and the combined figure.
Enter your own basic salary, total salary and dates in the calculator above for an exact split with a year-by-year breakdown.
What if I joined after March 2024?
There is no legacy portion — your whole entitlement is built from SIO employer contributions (4.2% while within your first 3 years of service, then 8.4%). The Article 116 calculation only applies to service before March 2024.
Who pays the SIO contribution?
The employer pays it on your behalf into the SIO fund — it is not deducted from your salary. The accumulated balance is yours when employment ends.
What salary is each part based on?
The legacy indemnity uses basic salary only; the SIO contribution uses your total monthly salary including allowances.
Why is the SIO figure an estimate?
The SIO invests the contributions, so your real fund balance reflects investment performance. This tool shows the employer-contribution amount — check your actual balance with the SIO.