Bahrain End-of-Service for Expats: How the SIO System Works, Plus Leave and Notice Rules

Bahrain changed how expat workers receive their end-of-service benefit. Instead of the employer paying a lump sum when the job ends, employers now pay monthly contributions into a fund run by the government's Social Insurance Organization (SIO). Here is how it works, along with the main leave and notice rules.

The SIO end-of-service fund

Item	Details
Who it covers	Non-Bahraini workers in the private sector
Started	Contributions began in March 2024
Legal basis	Law No. 14 of 2022, which set up the fund
Who pays	The employer, monthly
Rate, first 3 years	4.2% of wages
Rate after 3 years	8.4% of wages

The aim is to protect workers if an employer fails to pay at the end of the job, which was a common complaint.

How much you are entitled to

The entitlement itself is the same as under the Labour Law:

• Half a month's wage for each of the first 3 years
• One full month's wage for each year after that
• Part-years count pro rata

Example: wage BHD 400 a month, 5 years' service:

• First 3 years: 3 × 200 = BHD 600
• Next 2 years: 2 × 400 = BHD 800
• Total: BHD 1,400

If a worker dies, the benefit goes to their family in their home country.

Annual leave

• At least 30 days of paid leave after one year of service
• Leave builds up at 2.5 days a month

Sick leave

Period	Pay
First 15 days	Full pay
Next 20 days	Half pay
Next 20 days	Unpaid

Probation and notice

• Probation: up to 3 months for open-ended contracts.
• Notice: either side can end an open-ended contract with 30 days' notice. A contract can require longer notice from the employer, but not from the worker.
• If the employer doesn't give the required notice, you are paid for the notice period.

Tips

• Check your SIO record to confirm contributions are being paid for you.
• Keep your contract and payslips up to date.
• For work permit questions, contact the Labour Market Regulatory Authority (LMRA).

Related: LMRA's 3-month temporary assignment rule for workers.