LEAVE SALARY CALCULATION

Hello dear,

Article 47
The worker's rights related to the end of service indemnity and the compensation for the annual leaves balance specified in Article 59 as well as the compensation due in accordance with the provisions of Article 99 paragraph b and Article 111 of this Law, shall be calculated on the basis of the last basic wage of the worker in addition to the social gratuity if any. If the worker is employed by piece-work or per production or receives a fixed wage plus a commission or percentage, the average wage of the worker during the last three months shall be retained in the calculation of these rights.

I hope this is self-explanatory. Most of the companies offer the leave salary on the full salary. Even though the law mentions this, I have heard that in labour cases some judges offer to leave salary on the full salary. This is what I have heard but cannot say for sure as I haven't come across the court document mentioning details of the payout.

We have had many similar discussions on the forum and at times, even Lawyers such as Khalid Khan have commented. Use search.

I have personally been part of court cases from employer side where leave salary paid on basic has been upheld by the court.  Most people face confusion between article 47 and the definition of wages in other articles.  Practically speaking, if your company is offering on basic, and you go to court, it is likely to stand per court ruling.  I have seen 3-4 cases on this where we won.

Our company is giving the leave salary base on our basic.

and sir in my case i have been worked to the company for  4 years and yearly i am getting my leave and indemnity.
first year i got 100bd leave and 50 bd indemnity because my basic was only 100
2nd year i got 150bd leave and 75 bd indemnity my basic was 150
3rd year same i got, i went for vacation and i came back last October 2 2020 and i resigned my last working days was on July 27 2021, can you advise me how much do i need to get from them?

It is very clear from the Labor law that only Basic wage has to be paid. But this social allowance had been always in debate.

5- The Basic Wage: The remuneration specified in the labour contract paid to the worker on a periodical basis in additional to the possible increments if any.
6- The Wage: All what the worker receives in return for his work of any kind whatsoever, whether fixed or variable, in cash or in kind, including the basic wage and its accessories
such as gratuities, allowances, grants,rewards, commissions, and other benefits

If you want or the employee wants to challenge it they can challenge it in the court.

I have heard several times that it was awarded on Basic and full salary. I have a friend's case which is coming for final judgment in a week. So can give you the latest information.

Melanie Aguilar wrote:

Our company is giving the leave salary base on our basic.

and sir in my case i have been work to the 4 years and yearly i am getting my leave and indemnity.
first year i got 100bd leave and 50 bd indemnity because my basic was only 100
2nd year i got 150bd leave and 75 bd indemnity my basic was 150
3rd year same i got, i went for vacation and i came back last October 2 2020 and i resigned my last working days was on July 27 2021, can you advise me how much do i need to get from them?

Can you please mention the joining date and the leave start and end date of each year?

Joining date: April 1 2017
1st year April 2017-2018 April
2nd year April 2018-2019- April
3rd year April 2019- 2020 August i went vacation August and i come back October 2 2020.

Two things, one, in normal payroll practices, social allowance is for locals.... As they don't get housing (unless it's an mnc which doesn't know any better and wants to ensure underrated equality) etc. So their contracts mention it instead of other Expat benefits.

Secondly, there is a way around the leave salary angle IF your contract EXPLICITLY mentions social allowance, instead of housing, transport etc.  In this case, it will be added to basic. The only case that we lost in this area was exactly this issue because some silly HR person used the Bahraini contract template and no one picked it up.

Lastly, most companies, for the sake of good will and internal practice, encash unavailed leave on full salary (and indemnity on basic).  So that's general market practice.... But you can't compel them to do so.

Have a look at the blog from Khalid Khan.  He answers this and many other questions.  He has many cases like this.

Melanie Aguilar wrote:

Joining date: April 1 2017
1st year April 2017-2018 April
2nd year April 2018-2019- April
3rd year April 2019- 2020 August i went vacation August and i come back October 2 2020.

It is mentioned here the leave date for the 3rd year is April 2019 - 2020 August. or is it April 2020 - 2020 August?

Did you go on vacation for 5 months? Was Salary paid to you for all months or just 1 month?

Yeah its April 2019- August 2020 1 year and 4months. . 
Because i went for vacation the company paid my leave and indemnity for that period 1yeAr and 4 months

It is still not clear can you send me a direct message.