How Bahrain End of Service is Calculated
Bahrain's Labour Law for the Private Sector (Law No. 36 of 2012) establishes the end of service entitlement. The formula uses a tiered approach similar to Saudi Arabia but with a 3-year rather than 5-year breakpoint.
The Formula
- First 3 years of service: half a month's salary per year
- Each year beyond 3: one full month's salary per year
Under the 2012 law, both resignation and termination result in the same entitlement — there is no resignation reduction in Bahrain for private sector workers.
Frequently Asked Questions
Bahrain's Labour Law does not specify an explicit cap equivalent to UAE's 2-year rule. However, many employment contracts include specific caps. Always check your individual contract.
Bahraini nationals contribute to GOSI (General Organisation for Social Insurance), which provides pension and unemployment insurance. The end of service gratuity here covers workers not covered by GOSI — primarily expatriate employees. Bahraini nationals with GOSI coverage have different entitlement rules.