Indemnity Calculation After Resigning
Category: Legal

I have not able to clear my doubts on indemnity, and I need your helping in solving my problem. I’m working in a company, have completed 7 years, and have resigned. My salary is KD 350 and I need to know how much indemnity I will get in the end … also I have annual leave salary pending for 1 year and 8 months. What will be the total payment.

Name withheld


Your indemnity will be calculated as follows:

You get 15 days pay for each of the first 5 years = 75 days

But these 75 days have to be divided by 26 (working days in a month) = 2.88 months pay

You get one month’s pay for each of the remaining years = 2 months pay

Total = 2.88 + 2 = 4.88 months pay = 4.88 x KD 350 = KD 1,708

But as you are resigning with over 5 years but less 10 years service you are entitled to only two-thirds of this total = KD1,139

For the balance of the annual leave for one and a half years you have a total of 45 days (30 days per year)

But these 45 days have to be first divided by 26 (working days in a month) = 45 / 26 = 1.73 months pay = 1.73 x KD 350 = KD 605.500 So, your total settlement will be KD 1139 + KD 605.500 =KD1,744.500

Please help me calculate my indemnity. I have resigned from my company and my last working day is Oct 4, 2016. My joining date in this company was July 01, 2013. My salary is KD275/- (Basic salary was KD250/- with a KD25 allowance) What will be the total indemnity I will receive from my company?

Name withheld 
The figure of KD 275 must be used for the calculation of your indemnity because the law says that the last “remuneration” must be used for this purpose.

And according to the law, “remuneration” means the basic salary plus all the allowances received on a regular basis.

Secondly, you will get half the indemnity because your service is over 3 years but less than 5 years … and you have resigned.

The calculation of the indemnity will be as follows: Service: 3.25 years

Salary: KD 275 You are entitled to 15 days pay for each year of service = 3.25 x 15 = 48.75 days

But these days must first be divided by 26 (working days in a month) = 48.75 / 26 = 1.875 months salary = 1.875 x KD 275 = KD 515.625

But as you have resigned with over 3 years but less than 5 years service, you will be entitled to half the amount = KD 515.625 / 2 = KD 257.813



15 Oct, 2016 0 1025
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