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Kingdom of Bahrain Legal & Legislation Portal 2026
Bahrain Integrated Legal & Business Hub
Accurate End-of-Service Gratuity Calculator under Bahrain Labor Law No. 36 of 2012 (Articles 116 & 111), Ministry of Justice court e-services, Sijilat commercial registration, and Bahrain EDB foreign investment.
🌐 الانتقال إلى النسخة العربية (Arabic)🧮 End of Service Calculator (Bahrain Labor Law 36/2012)
Total Service Period:
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Calculated Daily Wage:
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Base Gratuity (Art. 116):
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Unfair Dismissal Compensation:
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Leave Encashment (Art. 58):
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Total Net Entitlements:
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📜 Bahrain Labor Law No. 36/2012 Key Articles
Article (116) — Gratuity Calculation Basis
Workers not covered by social insurance are entitled to a gratuity of half a month's wage for each of the first 3 years, and one full month's wage for each subsequent year of service.
Article (111) — Unfair Termination Compensation
If an indefinite contract is terminated without lawful justification, the employer must compensate the worker with two days' wage per month of service, minimum 1 month and maximum 12 months' wage.
❓ Frequently Asked Questions — Bahrain Labor & Legal Framework
How is end of service gratuity calculated in Bahrain?
Under Article 116 of Law 36/2012: Half a month's wage per year for the first 3 years, plus one full month's wage per subsequent year, based on the last drawn salary.
What is the compensation for arbitrary dismissal in Bahrain?
Article 111 sets compensation at 2 days' wage per month of service (minimum 1 month, maximum 12 months) unless specified otherwise in the contract.
How are labor disputes settled in Bahrain?
Complaints are submitted first to the Individual Labor Disputes Settlement Section at the Ministry of Labor; if unresolved, referred to the High Civil Labor Court.
Can foreigners establish a 100% owned business in Bahrain?
Yes, through Sijilat (sijilat.bh), foreign nationals can establish SPCs and WLL companies with 100% foreign ownership in most sectors with 0% corporate and income tax.