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?

Dear Farhaz and logical indian,

As per your info and bahrain law for calculating indemnity is basic + fixed allowance, but office is giving only basic. They are saying as per auditor and lawyer info it should be only basic.

Can you pls guide me if I go labour office can I get positive response.

Also Fyi, as per my offer letter shows basic and other allowances.

Thanks
Hassan

Then you can take the offer letter and present it to ministry of labor and seek their assistance.

T&R

Thanks and so, im eligible to get idemnity basis on gross salary and I hope ministry of labour stands that point.

But offer lettee shows four years before and now current salary also different, will be it be ok that.

Thanks

The calculation shared by Farhaz is correct. However, Indemnity is calculated on the total amount (basic + allowances) and is stated in the Labor Law which can be downloaded online.

If you have any issues, I suggest you go through the Labor Law and speak to your company. And should they bicker, you can go to the Ministry of Labor in Isa Town and lodge a formal complaint to them about your employer. They will take immediate action, but I doubt you will need to take that step.

Employers are well aware that if they mess around with an employees' indemnity and a formal complaint is lodged, they stand to be penalized by the Govt on other issues as well such as visas and stuff.

All the best

Dear Logical indian and capt chocolate

I personally went ministry of labour for enquiry of my indemnity and they said, Indemnity calculation is as per labour law not gross salary. If appointment letter is mentioned is social allowance then gross salary otherwise should be gross salary.

Please guide me for further step to get my gross salary for indmenity calcualtion.

Thanks

You will have to explain it to your employer and tell him that you visited ministry of labor  regarding this. if they dont listen, ask them to come with you to ministry of labor to get things sorted out.

T&R

Article 47 of the Labor Law states as following, "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".

Hope it helps!

Dear Logical indian and capt chocolate,

Ministry of labour only saying it should calculate basic salary not gross salary and they explained me if my Offer letter is mentioned social allowance then it should calculate as gross salary otherwise it should basic salary.

I hope ministry of lobour teach me wrongly.

Kindly guide me what I need to do.

Thanks

I am sorry but we can only provide you with the information here, as mentioned earlier take a copy of your offer letter, labor law  http://lmra.bh/portal/en/page/show/199#.VheXAvmqqkp (indemnity section) and speak to employer first and show him the laws, if he does not listen take the same to ministry of labor and explain them the situation and ask them for a solution, tell them that your employer is not adhering to labor laws.

Hope it helps.
good luck

T&R

Dear Logicalindian,

Ministry of labour only saying its basic salary not gross salary, if offer letter mentioned social allowance then its gross salary.

Thanks

Hi,
Yes so then its basic salary only which is used to calculate your indemnity, social allowance is not included in calculation.

T&R

Hi,

We are group of companies and strictly work according to rules & regulations of LMRA, Government and all other govt bodies. In regards to Leave salary and Indemnity we calculate both of these for each day an employee spends with our company. Here is how we calculate it.

Employees with less then three years:

1/2 of monthly Basic salary for each year (Leave Salary)
+ 1/2 monthly basic salary for each year (indemnity)

Employees with three or more years;

1/2 of monthly Basic salary for each year (Leave Salary)
+ full monthly basic salary for each year (indemnity)

*** these are figures I have known & we pay, if there will be any changes I will definitely rectify my answer here. (have to double check with my Account deptt.)

Regards

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