Article 116 of Labor Law No. 36 of 2012 sets the award at half a month's wage per year for the first three years and a month's wage per year after. The article applies to workers not subject to the Social Insurance Law, and since 1 March 2024 SIO pays the award to non-Bahrainis for the service covered by contributions, while the employer pays for the earlier period.
Step by step
- 1
Set the wage
The last basic wage plus the social allowance, if any, under Article 47.
- 2
The first three years
Half a month's wage for each year.
- 3
After three years
A month's wage for each year, with part years counted in proportion to the time served.
- 4
Split the service at 1 March 2024
The employer pays the award for the earlier period directly, and SIO pays the later period from the monthly contributions. The SIO scheme does not cover GCC nationals under the GCC insurance protection extension system.
- 5
Pay the monthly contribution
The employer alone pays SIO 4.2% of the wage for the first three years and 8.4% after that, under Prime Minister's Resolution No. 109 of 2023.
Forgetting the service before March 2024 is a common mistake: the award for that period stays with the employer and SIO does not pay it.
- end of service award for expatriates in bahrain
- end of service paid through sio bahrain