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Bahrain End-of-Service Gratuity Formula:
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The Bahrain End-of-Service Gratuity is a legal entitlement for employees who complete one year or more of continuous service. It is calculated based on the last wage and years of service, providing financial compensation at the end of employment.
The calculator uses the Bahrain gratuity formula:
Where:
Explanation: The formula calculates gratuity as 15 days' wage for each year of service, providing a fair compensation based on length of employment.
Details: Accurate gratuity calculation ensures employees receive their rightful end-of-service benefits according to Bahrain labor law, protecting workers' financial rights upon termination of employment.
Tips: Enter your last daily wage in local currency and total years of service. Partial years should be entered as decimals (e.g., 3.5 years for 3 years and 6 months).
Q1: Who is eligible for end-of-service gratuity in Bahrain?
A: Employees who complete one year or more of continuous service are eligible for end-of-service gratuity under Bahrain labor law.
Q2: How is the daily wage calculated?
A: The daily wage is typically the basic salary divided by 26 (working days per month), but specific calculations may vary based on employment contract terms.
Q3: What happens for service periods less than one year?
A: For service periods less than one year, employees are generally not entitled to gratuity unless specified in the employment contract.
Q4: Are there different rates for different service periods?
A: The standard rate is 15 days per year for the first 3 years, and 30 days per year for subsequent years in some cases, depending on the reason for termination.
Q5: Is gratuity taxable in Bahrain?
A: End-of-service benefits are generally not subject to income tax in Bahrain, but it's advisable to consult with a tax professional for specific cases.