Bahrain End of Service Gratuity Calculation: Latest Update 2024

Gratuity Calculator Bahrain

The Gratuity Calculator Bahrain is a method used to calculate end-of-service gratuities for businesses. This method is very simple and effective so that the employer can make these calculations to pay their employees. In this case, you must consider the most relevant aspects of employment, such as the salary and seniority of employees.

In this article, you will learn what a gratuity calculator is, as well as what a gratuity is. Likewise, they will know the eligibility criteria for workers, among other relevant aspects.

What is a gratuity calculator?

Gratuity Calculator Bahrain

The Gratuity Calculator Bahrain allows calculating the amount pay to employees after termination of employment. In this sense, the worker must have completed at least five years of service in a company. Online it is possible to find calculators for these figures that can give estimated values of the amount that the worker should receive.

Likewise, the calculation needs the input values, as well as the last income charged for the time of service in the company.

What is the gratuity?

The gratuity is the payment that an employee receives at the end of his service in a company, provided that the time of service exceeds 1 year. In addition, this indemnity in Bahrain is a liability for the employer accrued for the period of work of the employee.

Who can receive compensation in Bahrain?

Foreign workers have the right to receive a bonus from their employers upon completion of their service in the company. Instead, the social insurance law applies to Bahrain nationals and they will not receive the bonus.

When is the employee eligible for the bonus?

An employee must obtain end of service benefits in Bahrain upon completion of his contract. Likewise, family members can receive the bonus in the event of the death of the employee. Also due to incapacity for work or illness that exceeds the sick leave or annual vacation.

Basic amount and days used by gratuity calculator Bahrain

The basic amount to calculate the compensation is based on the recent salary received by the worker, and the social subsidy if any. Furthermore, the gratuity calculator in Bahrain uses the first 3 years of service with a company, for which the employee receives 15 days of payment each. Likewise, the worker receives 1 month of salary for each subsequent year of service.

Type of termination that influences the payment of the gratuity

The termination of the contract is possible by resignation, dismissal, or non-renewal of the employment contract. In these cases, the employer must pay benefits for cessation of work. In addition, if the worker is dismissed according to Article 107, the employer will not be obliged to pay any compensation.

Effect of unpaid leaves taken in the period of service

Unpaid leave does not count for the indemnity calculation in Bahrain. Likewise, the employer must reduce the time of permit by the days of unpaid leave taken by the employee.

Can an employer withhold bonus payments?

An employer can terminate a contract with a worker without the obligation to pay compensation only in some cases. Thus, Article 107 of the labor law establishes the following cases for non-payment of gratuity:

  • If the worker presents false identification documents, certificates, or false testimonials.
  • If the worker caused losses to the employer due to a fault committed. This is certified by the authorities 2 business days in advance.
  • When a worker does not comply with instructions or ignores written warnings for the safety of other workers. However, the instructions must be in a visible place.
  • If the worker is absent from work without just cause for 2 intermittent days or 10 consecutive days in 1 year. In this case, the employer must accompany the dismissal with the reprimand of the employer, which will be 10 days in the first case and 5 in the second.
  • If you fail to comply with the obligations of your employment.
  • When the worker reveals company secrets without the permission of the employer.
  • In the event of having received a conviction for a crime or offenses against public morality, dishonor, or dishonesty.
  • When the employee works drunk, drugged, or for committing an immoral act in the company.
  • For assault on your employer, manager, or supervisors during employment or for personal reasons.
  • For breaching legal regulations regarding the right to strike.
  • If the employee is unable to work because of it.

How to compute indemnity in Bahrain during the final settlement?

Gratuity Calculator Bahrain

With the Bahrain indemnity calculator, you can calculate online by applying the gratuity formula. However, to use it, the worker must be within the following categories:

  • Those who are covered by the Free Payment Act of 1972.
  • Those who are not covered by the Free Payment Act of 1972.

For employees covered by the Bonus Payment Act of 1972, the Gratuity Calculator Bahrain consists of the following:

  • The amount will be equal to the last salary collected, multiplied by 15 and in turn by the work period. Then, you need to divide this result by 26. Also, this last salary includes base salary, commissions, allowances, and more.

Employees not covered by the aforementioned bonus payment must calculate it as follows: gratuity calculator Bahrain

  • The amount will be equal to the last salary collected, multiplied by 15 and in turn by the work period. You then need to divide this result by 30. Also, the total payment depends on a salary of half a month per year of service completed. Likewise, the last salary includes all payments related to the net salary, as well as commissions, and allowances.

Another point to consider is that the length of service in fractions is rounded down to the nearest year. That is, the company takes the period of a worker with 24 years and 5 months as if it were 25 years.

Therefore, you should consider these formulas under the gratuity law of 1972. In addition, the laws do not provide information about the pay an employee should receive upon retirement or leaving the company.

As you have seen, the gratuity calculator Bahrain is a system that allows you to pay your employees fairly. Thus, if you still have more doubts regarding the subject, we invite you to contact us to clarify it.

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