Bahrain Legislative Changes 2024 - Gratuity

From 1st March 2024 private sector employers are now able to calculate and pay monthly gratuity contributions to the Social Insurance Organization for non-Bahraini / non-GCC employees working in the private sector, as the requirement to pay gratuity on termination ends for these employees on 29th February 2024.

Additional calculation value definitions, elements, and balances have been added to manage the new component Employer Gratuity Social Insurance.

The following calculation value definition is added to value definition group BH SI Reference Values:

  • Employer Gratuity Social Insurance

The following elements are added:

  • Gratuity Social Insurance

  • Employer Gratuity Social Insurance

  • Employer Gratuity Social Insurance Retro

The following balances are added:

  • Gratuity Social Insurance Contributory Salary

  • Employer Gratuity Social Insurance

The social insurance formula is updated to calculate gratuity social insurance based on a contributory salary with no maximum limit.

The following rules are also taken into account:

  • If the employees salary increases during the year, contributions will be calculated on the new contributory salary

  • If the employees salary decreases during the year, contributions will be calculated on the original, higher, contributory salary

To pay any outstanding gratuity amount to current employees, for the period of service up to 29th February 2024, add the element Gratuity Contributions Payment Initiator to element entries for the affected employees. The existing formula will be used to calculate the amount, or it can be entered directly at element entry level. It will be the shown in the calculation results as Gratuity Contributions Payment element.

The following elements are added to calculate the outstanding gratuity payment:

  • Gratuity Contributions Payment Initiator

  • Gratuity Contributions Payment

The following balance is added:

  • Gratuity Contributions Payment

Comply with the legislative requirements for Gratuity calculation.

Steps to Enable

You don't need to do anything to enable this feature.