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Calculation of Indemnity for 4 years of service

Can anyone guide me for the calculation of my indemnity for my 4 years of service for a same company in bahrain..i heard that for the first three years it will be calculated as 1/2 of the salary / year... means for first three years it will be 3 times of 1/2(Salary) .....can u confirm the same and how it will calculated for the service of 4 years...

Hi,

you will find the Bahrain Employment Laws in the below mentioned link
http://hellobahrain.com/content/employment-laws, but better to go through your offer letter as well which should mention the rules for calculating indemnity

T&R

indemnity

You will not need to work the indemnity figure out as a Bahraini doesn't like paying out any thing on a lump sum. I would just cut my losses as you will hear a lot of accuses from the company on this.

Everybody that is thinking of moving to Bahrain must think twice about either coming or even thinking of get any sort of  indemnity form a bahraini do not bank on it

Dear george11z

You cannot generalize things, its not the same with everyone. I have know so many of them who have got their indemnity in full as per the law.

T&R

Thiagu :

Can anyone guide me for the calculation of my indemnity for my 4 years of service for a same company in bahrain..i heard that for the first three years it will be calculated as 1/2 of the salary / year... means for first three years it will be 3 times of 1/2(Salary) .....can u confirm the same and how it will calculated for the service of 4 years...

Your calculation is correct, Thiagu.

Half a month's salary for each of the first three years and one month's salary from the 4th year onwards.

3 x 1/2 salary + 1 salary.

The way things can get complicated is if your employer will only calculate the indemnity on your basic salary instead of your total salary. Ideally it should be on the total monthly pay (Basic salary plus all fixed allowances).

Reproduced below is an extract from "The Labour Law for the Private Sector Law no 36 of 2012"
---
Article (116):
A worker who is not subject to the provisions of the Social Insurance Law shall be entitled upon the termination of his employment to a leaving indemnity at the rate of half month’s wage for each of the first three years of employment and one month’s wage for each of the following years in service. A worker shall be entitled to receive his leaving indemnity for fractions of the year in proportion to the period spent in the employer’s service.
---


As logicalIndian said, check you contract. Some companies pay a more generous indemnity than what is legally stipulated.

Good luck.

I'm asking too... How much my indemnify I'm 7 years working at the same employer... My salary is 250 bd....

kindly read Farhaz' reply he has mentioned how to calculate.

If that's your basic monthly wage, then you'd expect 1375 for completing 7 years, assuming you're not breaking the contract early.

Compared to Article 116 referred by Farhaz, Article 47 below can also be noted.

Article 47
'The worker’s rights related to the end of service indemnity and the compensation for the annual leaves balance specified in Article 59 as well as the compensation due in accordance with the provisions of Article 99 paragraph b and Article 111 of this Law, shall be calculated on the basis of the last basic wage of the worker in addition to the social gratuity if any'

Iam working as househoold here in bahrain for 7 years iam include also to get demity..

Hi,

do u mean housemaid? you would need to see the contract and if you have questions contact LMRA call center on +973 17506055.

T&R

flee27 :

Compared to Article 116 referred by Farhaz, Article 47 below can also be noted.

Article 47
'The worker’s rights related to the end of service indemnity and the compensation for the annual leaves balance specified in Article 59 as well as the compensation due in accordance with the provisions of Article 99 paragraph b and Article 111 of this Law, shall be calculated on the basis of the last basic wage of the worker in addition to the social gratuity if any'

do you agree with me that the old law with regards to indemnity is better than the new for for those employed for more than 5 years in the same company?

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