What Is Indemnity Calculation in Bahrain?
End-of-service indemnity, commonly referred to as gratuity, is a financial entitlement for employees upon the termination of their employment. According to Article 116 of Bahrain’s Labour Law, the indemnity is calculated based on the employee’s most recent basic salary, excluding all allowances except the social allowance.
How to Calculate Indemnity in Bahrain
The indemnity calculation is structured as follows:
- First 3 Years: Half a month’s salary for each year of service.
- After 3 Years: One month’s salary for each subsequent year of service.
Partial Years: Prorated based on the number of days worked.
How to Use the BBD Indemnity Calculator
Enter Last Basic Salary (BD):
- This is your last basic monthly salary in Bahraini
Dinar (BD). - For example, if your last basic salary was 300 BD,
enter 300.Enter Joining Date:
- Fill in the date when you started working in the
format dd-mm-yyyy. - Example: 01-01-2020.
Enter End Service Date: - Fill in the date when your employment ended or is
expected to end, in the same format dd-mm-yyyy. - Example: 31-12-2024.
Click “Calculate”:
- The calculator will automatically compute your
indemnity based on Bahrain labor law, considering your salary and length
of service.
Clear:
- Use this button if you want to reset all the fields
to blank and start over.