Bahrain Leave Salary & Encashment Calculator
Work out the value of your unused annual leave — instantly, per Bahrain Labour Law for the Private Sector No. 36 of 2012, Article 59
Leave salary calculator
Based on Bahrain Labour Law for the Private Sector No. 36 of 2012, Article 59
Quick answer
In Bahrain, unused annual leave is paid out on your last basic wage plus the social allowance: encashment = ((basic + social allowance) ÷ 30) × unused leave days. Annual-leave entitlement is 30 days a year — 2.5 days for each month of service — earned in proportion to the time you work (Bahrain Labour Law No. 36 of 2012, Art. 58 & 59).
At a glance
- Entitlement
- 30 days/year (2.5/month)
- Encashment base
- Basic + social allowance (÷30)
- Accrual
- In proportion to service
- Law
- Labour Law 36/2012, Art. 58 & 59
What "leave salary" means in Bahrain
"Leave salary" is the pay attached to your annual leave. Most people calculating it want the cash value of leave they did not take, paid out when their job ends — leave encashment.
Article 59 sets the wage used for both leave encashment and end-of-service indemnity as the last basic wage plus the social allowance, where one is paid. Other allowances (housing, transport) are excluded. This basic-plus-social-allowance base is distinctive to Bahrain and is the same base as the leaving indemnity.
How much annual leave you accrue
- •30 calendar days of annual leave a year — 2.5 days for each completed month of service.
- •Leave is earned in proportion to service, so a partial year builds a proportional balance (Art. 58).
- •A worker must take at least 15 days of leave a year, including 6 consecutive days (Art. 59); the rest can generally be carried over or encashed.
Leave salary and indemnity in Bahrain: two payments, one wage base
Bahrain is unusual in the Gulf for putting leave salary and the leaving indemnity on the same wage base — the last basic wage plus the social allowance (Articles 59 and 116). Oman splits the two, paying leave on the gross wage and gratuity on basic; the UAE and Qatar restrict gratuity to basic while leave follows its own rule. In Bahrain, once you know the base for one figure you know it for the other.
The two are still calculated differently. Leave salary is your accrued-but-unused days × (base wage ÷ 30). The indemnity is half a month’s base pay for each of the first three years of service and a full month for each year from the fourth. Service from March 2024 onwards is funded by SIO contributions, so that portion is claimed from the SIO rather than the employer.
| Payment | Wage base | Article |
|---|---|---|
| Leave salary on unused days | Basic wage + social allowance | Art. 59 |
| Leaving indemnity (end of service) | Basic wage + social allowance | Art. 116 |
| Pay in lieu of notice | Full wage | Art. 99 |
Bahrain Labour Law No. 36 of 2012. Notice pay is the one figure of the three calculated on the full wage.
Work out the indemnity side with the Bahrain end-of-service calculator
How leave encashment is calculated
- 1
Find your accrued leave
Multiply 2.5 by your completed months of service.
- 2
Subtract leave already taken
Deduct the annual-leave days you have used to get your unused balance.
- 3
Work out the daily wage
Add your basic wage and social allowance, then divide by 30.
- 4
Multiply
Unused days × daily (basic + social allowance) = your leave encashment.
Worked examples
BHD 450 basic + 150 social, 2 years, 15 days taken
- Accrued: 2.5 × 24 months = 60 days
- Unused: 60 − 15 = 45 days
- Daily wage: (450 + 150) ÷ 30 = BHD 20
- 45 × 20 = BHD 900
BHD 900 (basic + social), 4 years, 0 days taken
- Accrued: 2.5 × 48 months = 120 days
- Daily wage: 900 ÷ 30 = BHD 30
- 120 × 30 = BHD 3,600
Frequently asked questions
Is leave salary calculated on basic or gross wage in Bahrain?
On the last basic wage plus the social allowance (Bahrain Labour Law 36/2012, Art. 59). Housing, transport and other allowances are excluded. This is the same wage base used for the leaving indemnity.
How many annual leave days am I entitled to in Bahrain?
Thirty days a year — 2.5 days for each month of service (Art. 58). Leave is earned in proportion to the time you have worked.
How is unused leave paid when I leave a job in Bahrain?
Your unused annual-leave balance is multiplied by your daily wage — (basic + social allowance) ÷ 30 — and paid as part of your final settlement, whether you resign or your contract ends.
Do I have to take some of my leave each year in Bahrain?
Yes. A worker must take at least 15 days of annual leave a year, including 6 consecutive days (Art. 59). The remainder can generally be carried over or paid in cash.
Do I get leave salary if I resign in Bahrain?
Yes. Payment for accrued but unused annual leave is due whether you resign or are terminated.
How do I calculate leave salary and indemnity together in Bahrain?
Both use the same base — the last basic wage plus the social allowance. Leave salary is your unused days × (base ÷ 30). The leaving indemnity is half a month’s base pay for each of the first three years of service and a full month for each year from the fourth. Run them separately: this page for the leave figure, and the Bahrain end-of-service calculator for the indemnity.
Does the social allowance count towards leave salary in Bahrain?
Yes. Article 59 calculates leave encashment on the last basic wage plus the social allowance, so a worker who receives the allowance should see it reflected in the daily rate applied to their unused days. Housing and transport allowances are not included.
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Related calculators
- Gratuity / end-of-service calculator
- Bahrain Overtime Calculator
- Bahrain Annual Leave Calculator
- Bahrain Notice Period Calculator