Reviewed: 9 October 2026. This is general information. Official sources are linked below; individual cases and applicable rules should be checked with the relevant authority or a qualified adviser.
Which system applies?
SIO says its non-Bahraini gratuity system applies to expatriate private-sector employees covered by the employment-injury insurance branch. Its payment system took effect on 1 March 2024. For earlier service, the employee can claim the relevant dues from the employer after employment ends.
Do not apply a single formula or payment route to every worker. Confirm insurance coverage and separate service dates before preparing a settlement.
Official sources: SIO: end-of-service gratuity for non-Bahrainis
Contribution rates and benefit calculation
SIO’s monthly employer contribution is 4.2% of wages for the first three years and 8.4% thereafter. These are contribution rates, not an extra deduction to assume from the employee’s salary.
SIO describes the benefit as 15 days’ salary for each of the first three years and one month for each subsequent year. Its stated salary basis includes basic salary and social allowance, if any, while excluding other allowances and benefits.
Official sources: SIO: end-of-service gratuity for non-Bahrainis
Earlier service and partial years
Article 116 of the LMRA-hosted Labour Law text addresses leaving indemnity for workers outside the Social Insurance Law and includes proportional entitlement for fractions of a year. Read it alongside the applicable SIO arrangements; the former page’s blanket one-year minimum and resignation reductions were not supported by the reviewed sources.
Official sources: LMRA-hosted English Labour Law: Articles 21, 40, 99–100, 116 and 135–136 · SIO: end-of-service gratuity for non-Bahrainis
Prepare a settlement review
Gather the contract, start and end dates, salary history, insurance records and any earlier payments. Distinguish the employer’s earlier-service liability from the SIO-covered period so that service is not omitted or counted twice.
- Confirm the registered salary and service record with SIO.
- Use SIO’s official application guidance for its portion of the benefit.
- Keep outstanding wages, leave and any notice-related amounts separately identified.
- Seek prompt case-specific advice if figures or payment responsibility are disputed.
Official sources: SIO: end-of-service gratuity for non-Bahrainis · LMRA-hosted English Labour Law: Articles 21, 40, 99–100, 116 and 135–136
Related guides
- LMRA employee transfer in Bahrain
- LMRA absence-from-work reports and grievances
- Bahrain Dependent Visa: Spouse & Children
- Bahrain termination notice and final settlement
- Bahrain Flexi Visa: Registered Worker Permit
- Bahrain pension calculation: check your SIO scheme
- Bahrain SIO contribution rates: scheme and payroll checks
- Leaving and returning to Bahrain: travel checks
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