With our guide, you can learn how to claim indemnity in Bahrain. You can also understand eligibility, calculate your payout, and apply online via SIO. Thus, you can easily get your End-of-Service Benefits!
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If you work in Bahrain, you have likely heard about indemnity—a payout you might be entitled to when leaving a job.
However, what is it, who qualifies, and how do you claim it?
Whether you are an expat, a Bahraini citizen, or a domestic worker, navigating Bahrain’s indemnity process can feel overwhelming.
Do not worry—this guide breaks it down clearly and practically to help you get what you are owed.
From understanding the basics to checking your claim status online, here is everything you need to know about indemnity in Bahrain.
Let us get started!
What Is Indemnity?
In Bahrain, indemnity—also called End-of-Service Benefits (EOSB)—is a financial payment employers make to employees when their employment ends.
It is a legal entitlement under Bahrain’s Labour Law, designed to reward your service and support you as you transition to a new job or life chapter.
Consider it a “thank you” for your time and effort, backed by law.
Indemnity is specific to employment and should not be confused with indemnity insurance, which protects against financial losses in other contexts (like medical or legal claims).
This guide focuses solely on employment indemnity.
Who Can Claim Indemnity?
Not everyone qualifies for indemnity, so let us clarify eligibility.
According to Bahrain’s Labour Law, you may be eligible if you are:
- An Expat Worker: Non-Bahrainis in the private sector who have worked for at least one year.
- A Bahraini Citizen: Locals working full-time, part-time, or on contracts for at least three months.
- A Domestic Worker: Housemaids and similar workers qualify, with calculations like other employees.
- Not Covered by Social Insurance: If you are enrolled in Bahrain’s pension scheme (standard for Bahrainis and GCC citizens), you may not qualify, as you receive pension benefits instead.
- A Nominee of a Deceased Employee: If an employee passes away, their family or nominees can claim indemnity (per Article 113).
- Completing a Contract: You qualify if you’ve fulfilled your contract, whether you resign or are terminated.
Important Notes
- You must meet the minimum service period (one year for expats and three months for Bahrainis).
- If you switch jobs using Bahrain’s mobility scheme, you may need to wait until your employment fully ends or you leave Bahrain to claim.
- For post-March 2024 claims, your visa must be canceled (more on this later).
Unsure about your status?
Check your employment contract or contact the Labour Market Regulatory Authority (LMRA) at +973 17506055.
How to Calculate Indemnity
Calculating indemnity is straightforward once you know the rules.
It is based on your last basic salary (including social allowances) and years of service.
Here is the formula from Article 116 of Bahrain’s Labour Law:
- First 3 Years: Half a month’s salary per year.
- After 3 Years: One whole month’s salary per year.
- Partial Years: Prorated based on days worked.
Example:
Suppose you are an expat, Ahmed, with a basic salary of BHD 600 and 4 years, 4 months of service.
Here is the breakdown:
| Period | Calculation | Amount |
|---|---|---|
| First 3 Years | 3 × (BHD 600 ÷ 2) | BHD 900 |
| Fourth Year | 1 × BHD 600 | BHD 600 |
| 4 Months (120 days) | (BHD 600 ÷ 365) × 120 | BHD 197.26 |
| Total | BHD 900 + BHD 600 + BHD 197.26 | BHD 1,697.26 |
Ahmed would receive approximately BHD 1,697.
New System (Post-March 2024)
Since March 1, 2024, employers of non-Bahraini workers have contributed monthly to the Social Insurance Organization (SIO) instead of paying a lump sum.
Contribution rates are:
- 4.2% of your annual salary for the first three years.
- 8.4% of your yearly wage thereafter.
Employers pay the lump sum for service before March 2024 using the old formula.
For service after, you claim from SIO.
How to Claim Indemnity
The process depends on when your service occurred.
Here is how to claim for each period.
Service Before March 2024
Your employer pays the indemnity directly for this period.
Follow these steps:
- Verify Eligibility: Confirm you have worked the required period.
- Request Payment: Submit your resignation or await termination, then ask for your final settlement, including indemnity.
- Review Your Contract: Ensure calculations use your basic salary plus allowances (per Article 47).
- Escalate if Needed: If your employer delays or refuses payment, contact the Ministry of Labour or LMRA (+973 17506055) with your contract and payslips.
Service After March 2024 (SIO Claims)
For indemnity accrued after March 2024, claim through SIO:
- Get an Advanced eKey: Register in Bahrain.bh portal using your CPR and a password. Upgrade to an Advanced eKey at a service center (e.g., Seef Mall) with fingerprint verification.
- Log In to SIO: Visit www.sio.bh and log in with your Advanced eKey. Select “Insuree e-Services” and “End of Service Benefits.”
- Apply: Confirm your visa is canceled (check on www.lmra.bh). Enter your employment and salary details. Use a computer for a smoother experience. Submit your claim via the “+” button on the EOS page.
- Monitor Progress: You can check your application status under “My Applications” on the SIO portal. Processing takes a few weeks. If issues arise, contact SIO (+973 17101010).
Claiming Online
The SIO portal is the leading platform for post-March 2024 claims.
Ensure you have an Advanced eKey, accurate employer-submitted data, and proof of visa cancellation.
If the portal glitches, try a desktop browser or visit an SIO office.
How to Check Your Indemnity Status
Track your claim with these methods:
- SIO Portal: Log in to www.sio.bh with your Advanced eKey. Check “My Applications” for updates. If there is no progress, verify your employer’s data submission.
- SIO Office: Visit a branch (e.g., in Manama) with your CPR card and employment records. Staff can resolve issues like incorrect salary data.
- LMRA or Ministry of Labour: If your employer has not paid for disputes before March 2024, contact LMRA (+973 17506055).
Tip: Save your contract, payslips, and visa cancellation proof to resolve disputes quickly.
Overcoming Common Challenges
Here are solutions to frequent indemnity hurdles:
- Employer Non-Payment (Pre-March 2024): File a complaint with the Ministry of Labour or seek legal advice via legaladviceme.com.
- SIO Data Errors: If your salary or service period is incorrect, ask your employer to update SIO records or visit an SIO office.
- Visa Delays: You need a canceled visa to claim from the SIO. Check status on www.lmra.bh.
- Portal Issues: Clear your browser cache or use a desktop if the SIO site malfunctions.
Why Indemnity Matters
Indemnity is more than money—it is a safety net.
For expats, it can fund a move or a new venture.
For Bahrainis, it rewards years of service.
The new SIO system ensures employers contribute regularly, protecting workers from non-payment.
Tips for a Smooth Claim
- Understand Your Rights: Review Bahrain’s Labour Law (online in English) for details.
- Keep Records: Store your contract, payslips, and visa documents.
- Apply Promptly: Submit SIO claims soon after visa cancellation.
- Get Help: Reach out to SIO, LMRA, or legal consultants if stuck.
Wrapping Up
Claiming indemnity in Bahrain may seem complex, but with this guide, you can navigate the process confidently.
Whether you are dealing with an employer for pre-2024 service or SIO for recent contributions, your hard-earned payout is within reach.
Do you have tips or questions about claiming indemnity?
Could you share them below?
For more details, visit www.sio.bh or call LMRA at +973 17506055.
Here’s to securing what you have earned!
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