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.