Estimate an expatriate employee's Bahrain end-of-service benefit, understand the March 2024 SIO split, and turn the result into a clean payroll and offboarding action plan.
The old article described only the pre-2024 employer calculation. This version reflects Bahrain's current SIO framework.
Official SIO guidanceUse the employee's final eligible monthly wage: basic salary plus social allowance, if applicable. Do not include unrelated benefits or allowances.
The calculator applies 15 days of eligible wage for each year in the first three years of total service and one month for each subsequent year, pro-rated by exact calendar days. It separates service at 1 March 2024 for planning visibility. It does not account for exclusions, disputed wage data, contractual enhancements, breaks in service or case-specific legal issues.
The accrual formula may look familiar, but responsibility changed on 1 March 2024.
For service before the new SIO system took effect, the employee may claim the earlier accrued entitlement from the employer after employment ends.
Covered employers fund the system through monthly contributions. The employee applies to SIO after the employment relationship ends.
Use final basic salary plus social allowance, if any, rather than gross payroll cost.
15 days per year for the first three years; one month per year after year three.
Separate the legacy employer period from the SIO-administered period for action and reconciliation.
Primary reference: Bahrain Social Insurance Organization, End of Service Gratuity for non-Bahrainis and Decision No. 109 of 2023.
The useful outcome is not a number on a screen. It is a clean employee file, correct monthly reporting and a defensible final settlement.
Check SIO, LMRA, WPS and employee-record obligations as one operating system.
Explore compliance → For finance teamsAlign eligible wages, provisions, monthly contributions and year-end schedules.
Explore accounting → For a live caseSend us the dates, wage record and employee category for a practical review.
Speak to an advisor →We can review the employee record, reconcile the pre- and post-March 2024 periods and prepare a practical settlement schedule.
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