Calculation of leave salary and indemnity in the Kingdom of Bahrain

Dear User,

Leave salary and indemnity are always calculated on the basis of the most recent basic salary in addition to the social allowance if any.

For example, if A joins a company in Bahrain at BHD 8,000 salary but the basic salary is only BHD 5,000 then the indemnity will only be paid at the basic pay of BHD 5,000.

In the same way, if A works with the company for 3 years and at the time of the end of services the basic salary is BHD 15,000 then the indemnity will be calculated on BHD 15,000 not on BHD 5,000, as the law says that the indemnity will be calculated on the most recent basic pay.

Thank you