Leaving indemnity under Article 116 of the Bahraini Labour Law — the end-of-service payment for workers who are not covered by the Social Insurance Law, which in practice means most expatriate employees.
In short: Bahrain leaving indemnity is half a month's wage for each of the first three years of service and one month's wage for every year after that, on your most recent wage (basic plus social allowance). There is no cap and no reduction for resigning.
| Length of service | — |
| First 3 years — half a month per year | — |
| After 3 years — one month per year | — |
Worked example: wage BHD 800, 5 years of service → 800 × (0.5 × 3 + 2) = 800 × 3.5 = BHD 2,800.
Half a month's wage per year for the first three years, one month per year after, pro-rated — with no cap (Article 116).
Workers outside the Social Insurance Law — mainly expatriates, and Bahrainis above the SIO wage ceiling.
The most recent wage under Article 47: basic wage plus social allowance. Other allowances are excluded.
No — Article 116 has no resignation reduction.
No statutory cap. Service keeps accruing at one month per year.