Domestic workers in Bahrain who complete at least one year of service are legally entitled to an end-of-service leaving indemnity under Article 116 of Bahrain’s Labour Law. It is a legal right, not a bonus or a goodwill payment. This guide explains the exact rate, works through real BHD examples, and shows what to do if it is not paid.
⚡ Quick Facts
| Question | Answer |
|---|---|
| Minimum service | 1 completed year |
| Rate, years 1–3 | Half a month’s wage per year (15 days) |
| Rate, year 4 onward | One full month’s wage per year (30 days) |
| Partial years | Paid pro-rata |
| Calculated on | Last basic wage |
| Legal basis | Labour Law No. 36 of 2012, Article 116 |
| Regulator | LMRA — 17506055 |
🧮 Gratuity Formula — Bahrain
Bahrain uses a two-tier rate. The first three years accrue at half the rate of every year after them:
Daily wage = last basic monthly wage ÷ 30
Years 1–3 → 15 days per year
Year 4 onward → 30 days per year
Gratuity = daily wage × total days earned
Bahrain is now the only Gulf state using this two-tier shape. Oman moved to a flat half-month per year under Ministerial Decision 574/2025, so long service is worth disproportionately more in Bahrain: the fourth year alone earns as much as the first two combined.
Are domestic workers covered? Yes. Article 2 of the Labour Law excludes domestic workers from most of its provisions, but it then lists the articles that still apply to them — and Article 116 is on that list. The end-of-service entitlement is one of the protections domestic workers keep.
📊 Real Calculation Examples (BHD)
Worked on a monthly basic wage of BHD 120, a typical domestic-worker salary in Bahrain. The daily wage is 120 ÷ 30 = BHD 4.
| Service | Days earned | Calculation | Gratuity |
|---|---|---|---|
| 1 year | 15 | 4 × 15 | BHD 60 |
| 2 years | 30 | 4 × 30 | BHD 120 |
| 3 years | 45 | 4 × 45 | BHD 180 |
| 5 years | 105 | 4 × 105 | BHD 420 |
| 8 years | 195 | 4 × 195 | BHD 780 |
The five-year figure is the one people get wrong most often. Five years is not 5 × 15 = 75 days. It is three years at 15 days (45) plus two years at 30 days (60) = 105 days. Using the flat first-tier rate would understate the payment by BHD 120.
A worker leaving after 3 years and 6 months earns 45 days for the first three years plus half of a 30-day year (15 days) = 60 days = BHD 240. Partial years always count.
✅ When Is Gratuity Payable?
| Situation | Gratuity due? |
|---|---|
| Contract ends normally | Yes |
| Worker resigns after 1+ year | Yes |
| Employer ends the contract | Yes |
| Worker leaves before 1 year | No |
| Contract transferred to a new employer | Yes — settled by the outgoing employer |
✅ What Else Is Owed at the End of a Contract
Gratuity is rarely the only outstanding amount. Also settle:
- Any unpaid salary up to the final working day
- Payment for accrued but untaken annual leave
- The return air ticket to the worker’s home country, where the contract provides for it
- The worker’s passport — which is hers by law and must be returned
📌 A Note on the 2024 SIO Scheme
Since March 2024 Bahrain has collected end-of-service entitlements for many expatriate employees through monthly employer contributions to the Social Insurance Organisation (SIO), rather than as a lump sum paid at the end. The monthly rates are 4.2% of salary for the first three years and 8.4% thereafter — which is simply the Article 116 entitlement spread across twelve months (half a month ÷ 12 = 4.2%; one month ÷ 12 = 8.4%).
The practical point for families and workers: whichever route applies, the amount earned is the same. What changes is who holds the money until the contract ends. If you are unsure which route covers your contract, confirm it with LMRA before the final settlement.
❓ Frequently Asked Questions
How much gratuity is a maid owed in Bahrain?
Half a month’s basic wage for each of the first three years of service, then one full month’s wage for each year after that, under Article 116 of Labour Law No. 36 of 2012. Partial years are paid pro-rata.
Is gratuity payable after only 1 year in Bahrain?
Yes. One completed year of continuous service is the threshold. A worker on BHD 120 who leaves at exactly one year is owed 15 days, or BHD 60.
Is gratuity calculated on basic salary or the full package?
On the last basic wage. Allowances paid separately for items such as transport are normally excluded from the calculation.
Can an employer deduct damages from gratuity?
No. Gratuity is a legally protected entitlement. A claim for a broken item, a disputed loan or an alleged loss is a separate matter and cannot simply be netted off the final payment.
What if the employer refuses to pay?
Contact the Labour Market Regulatory Authority (LMRA) on 17506055. Before you do, write the calculation down — basic salary, start and end dates, the daily rate and the days earned. Most disagreements end there, because the other side was working from a different number rather than refusing to pay.
🏠 Hiring a Domestic Worker in Bahrain?
Check any agency’s licence before money changes hands, and work out the end-of-service figure at the start of a placement rather than at the end of one.
Sources: Bahrain Labour Law for the Private Sector, Law No. 36 of 2012 (Articles 2 and 116); Labour Market Regulatory Authority (LMRA). Figures are indicative and current for 2026 — confirm your own case with LMRA before a final settlement.
Related Guides
- Hiring a domestic worker in Bahrain: full 2026 guide
- Maid salary in Bahrain 2026
- End-of-service gratuity in Oman (flat half-month rate)
- End-of-service gratuity in Kuwait
