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Bahrain End of Service Gratuity Formula:
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Bahrain End of Service Gratuity is a legal entitlement for employees upon termination of employment in Bahrain. It is calculated based on the employee's last wage and years of service according to Bahraini labor law.
The calculator uses the Bahrain gratuity formula:
Where:
Explanation: The formula calculates gratuity based on 21 days' wage for each year of service, with proportional calculation for partial years.
Details: Accurate gratuity calculation is essential for employers to comply with Bahrain labor law and for employees to understand their legal entitlements upon employment termination.
Tips: Enter last daily wage in currency, complete years of service, and any additional partial days. All values must be valid (wage > 0, years ≥ 0, partial days 0-364).
Q1: Who is eligible for end of service gratuity in Bahrain?
A: All employees who complete one year or more of continuous service are eligible for gratuity under Bahrain Labor Law.
Q2: How is the daily wage calculated?
A: Daily wage is typically the basic salary divided by 26 (working days per month) or as specified in the employment contract.
Q3: Are there different calculation methods for different service periods?
A: Yes, Bahrain law specifies different gratuity rates for service periods under 3 years, 3-5 years, and over 5 years.
Q4: What happens if employment is terminated during probation?
A: Employees terminated during probation period may not be entitled to gratuity unless local laws specify otherwise.
Q5: Is gratuity calculation different for resignation vs termination?
A: The calculation method is generally the same, but eligibility and amounts may vary based on the circumstances of employment termination.