Q: How to calculate indemnity payment? The question is if the indemnity payment calculated based on the amount banked into account or only on basic salary? A: In Kingdom of Bahrain the indemnity is calculated only on the basic pay plus social allowance (mentioned as social allowance in the contract…

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Basis for indemnity payment calculation in Bahrain

How to calculate indemnity payment? My salary is directly banked into HSBC Bahrain monthly which includes my basic pay, housing allowance and transportation.

The question is if the indemnity payment calculated based on the amount banked into account or only on basic salary?

I have been working with this consultancy firm since 2008 and they recently gave me termination letter (one month notice).

What is my entitlement for settlement?

Khalid Khan

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19 Feb 2017, 08:51

Hi,

Please note that in Kingdom of Bahrain the indemnity is calculated only on the basic pay plus social allowance (mentioned as social allowance in the contract).

The indemnity won't be calculated on the basis of your basic pay plus housing allowance.

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