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How to calculate the end of service indemnity in the labor law?

If my salary is 180, how much will I get as my end of service (indemnity)?
Abdulwahab Attorneys & Legal Consultants
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17 Oct 2021, 09:06

In accordance with Article (116) of the Labour Law, the Employer must pay its non-Bahraini employees a leaving indemnity equivalent to half (1/2) a month’s salary for each year of service for the first three years and a one month’s salary for each year of service thereafter.

The calculation shall be based on the Employee's most recent wage, excluding all allowances except social allowance.

17 Oct 2021, 16:46

Thanks a lot, Ms. Hawra.

So for example, as an employee’s salary is let’s say BHD 180 and will be going for a vacation after 2 years of serving his employer, how much exactly or roughy will he/she get?

19 Oct 2021, 06:38

Please keep in mind that the employee is only entitled to a leave indemnity if he or she is terminated/resigned.

If the employee's most recent wage, exclusive of all allowances except social allowance, is BHD 180, he or she is entitled to BHD 180 for two years of service in the leave indemnity.

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