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
LMRA rules for leave salary in Bahrain: Articles 47, 58 and 59
"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.
These are often called LMRA rules, but they come from the Labour Law for the Private Sector, Law No. 36 of 2012, which the LMRA publishes in English. Three of its articles cover leave salary:
- •Entitlement (Art. 58): at least 30 days of paid annual leave a year, at 2.5 days for each month. Under a year, leave is earned in proportion to your service from your first month, with no qualifying period.
- •Taking it (Art. 59(a)): the employer sets the dates, but you must get at least 15 days a year, 6 of them in a row.
- •Contingency leave (Art. 59(b)): up to 6 days a year for an emergency, no more than 2 at a time, counted against your annual leave.
- •Settling the balance (Art. 59(c)): the employer must settle any balance and its wage at least every two years, and if the job ends before you use it, you are owed the wage for it.
- •The one way to lose it (Art. 59(d)): the balance is not paid for leave the employer scheduled if it is proved that you refused in writing to take it.
- •The wage (Art. 47): a cash balance is paid on your last basic wage plus the social allowance, if any. Housing, transport and other allowances are excluded. Leave you actually take is on full pay (Art. 58).
Leave salary and indemnity in Bahrain: two payments, one wage base
Article 47 puts leave salary and the leaving indemnity on the same wage base: the last basic wage plus the social allowance. Two things make that base distinctive. One allowance counts and the others do not, and notice pay sits on it too. Oman splits its payments, paying leave on the gross wage and gratuity on basic, while in Kuwait and Saudi Arabia every component runs on the full wage. In Bahrain, once you know the base for one figure you know it for the other two.
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. 47 & 59(c) |
| Leaving indemnity (end of service) | Basic wage + social allowance | Art. 47 & 116 |
| Pay in lieu of notice | Basic wage + social allowance | Art. 47 & 99(b) |
Bahrain Labour Law No. 36 of 2012. Article 47 names all three in one sentence, so housing and transport stay out of every one of them.
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. 47). Housing, transport and other allowances are excluded. This is the same wage base used for the leaving indemnity. That base is for unused days paid out in cash; leave you actually take is on full pay (Art. 58).
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 47 puts 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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