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Bahrain Leaving Indemnity 2026: How End-of-Service Is Calculated

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Bahrain's end-of-service pay is called leaving indemnity. It accrues from your first day and is pro-rated for partial years.

The bands

Half a month's wage per year for the first 3 years, then a full month per year after, based on your last wage.

Worked example

BHD 500/month, 5 years: first 3 = 3 × ½ × 500 = BHD 750; next 2 = 2 × 500 = BHD 1,000. Indemnity = BHD 1,750.

Who it covers

Leaving indemnity mainly applies to expatriate workers who aren't in Bahrain's social-insurance pension scheme (which covers Bahraini nationals).

Frequently asked questions

How is leaving indemnity calculated in Bahrain?

Half a month's wage for each of the first three years and a full month's wage for each year after three, pro-rated for partial years, based on your last wage.

Is there a minimum service for Bahrain indemnity?

No — it accrues from day one and is pro-rated for partial years.

Does resignation reduce Bahrain indemnity?

No standard reduction — the accrued indemnity is due on leaving.

Who does this apply to?

Mainly expatriate workers not covered by Bahrain's social-insurance (SIO) pension scheme.

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