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Bahrain Employment

Bahrain EOSB Calculator 2026 (SIO System)

Bahrain was the first GCC country to switch to a funded EOSB system. Since March 2024, employers pay monthly contributions to the SIO (4.2% for the first 3 years, 8.4% after). Calculate your gratuity entitlement and verify whether your employer's SIO contributions cover it.

Employment & Salary Details

Your EOSB Estimate

Enter your employment details to calculate your Bahrain EOSB.

About Bahrain EOSB & the SIO System

Bahrain's end-of-service gratuity is governed by the Labour Law for the Private Sector (Art. 116). Employees are entitled to 15 days' wages per year for the first 3 years of service, rising to 1 month's wages per year for each subsequent year. A minimum of 1 year of continuous service is required. Gratuity is calculated on basic salary plus social allowance only — housing, transport, and other allowances are excluded.

Resolution No. 109/2023 (effective 1 March 2024) transformed Bahrain into the first GCC country with a fully funded EOSB system. Employers now pay monthly contributions to the Social Insurance Organisation (SIO): 4.2% of wages for the first 3 years of service, and 8.4% thereafter. At termination, the SIO disburses the gratuity directly to the employee — the employer no longer pays a lump sum. Employees can verify their SIO balance at sio.gov.bh.

Frequently Asked Questions

Before March 2024, Bahraini employers paid EOSB as a lump sum directly to departing employees. Resolution 109/2023 shifted this to a funded model: employers now contribute monthly to the SIO (4.2% for years 1–3, 8.4% afterwards). The SIO then disburses the gratuity at termination. The formula for calculating the gratuity amount itself hasn't changed — only the funding mechanism has.
Unlike Kuwait, Bahrain Labour Law does not impose a resignation penalty. Whether you resign, your contract expires, or you are terminated without cause, you receive the same gratuity entitlement — provided you have at least 1 year of continuous service. Only dismissal with cause (gross misconduct) forfeits the entire entitlement.
Bahrain EOSB is calculated on basic salary plus social allowance only. Housing allowance, transport allowance, commissions, bonuses, and other variable pay are excluded. This applies to both the gratuity calculation and the SIO contribution base.
Log in to the SIO Bahrain portal (sio.gov.bh) and check your contribution statement. If the employer's contributions fall short of your entitlement, you have the right to file a complaint with the Ministry of Labour and Social Development. Employers who fail to pay contributions on time face penalties under Labour Law.

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