Indemnity Calculation For Those Who Resign From Pvt. Company
Category: Indemnity
indemnity-calculation-for-those-who-resign-from-pvt-company_kuwait
Immigrate to Canada or Australia
Study In Abroad

I have resigned from a company which I’ve worked for 3 years and 6 months. I was getting a salary of KD 425 but in the work permit it says my salary is KD 250. They are saying that I will only get KD 210 indemnity because I resigned. On top of that, they also said that the company will pay my 31 days remaining leave balance in addition to my indemnity. I am confused with their computation. How much will I be getting and what is the computation of my indemnity based on the Kuwait Labour Law?

Name withheld

Answer: When calculating end of service benefits which include indemnity the word ‘remuneration’ comes into play and must be used. This is according to the Kuwait Labour Law enacted on Feb 20, 2012. Unfortunately however a number of companies are interpreting the law wrongly.

Article 62 of the Labor Law says that ‘The calculation of the worker’s entitlements shall be made on the basis of the last remuneration received by the worker.’ After the above explanation, we must specifically tackle your case and state that the KD 425 you receive monthly should be basis of calculating your indemnity and not the KD 250 shown on your work permit. Your indemnity should therefore be calculated as follows: Total pay KD 425, service 3.5 years.

For first five years, indemnity is calculated on the basis of 15 days pay for each year = 75 days but you have done 3.5 years so yours will be 15 x 3.5 = 52.5 days but these days must be divided by 26 (working days in a month) = 2.019 months salary. Your indemnity = 2.019 x KD 425 = KD 858.75. But since you have resigned, you will be entitled to half this amount = KD 429.0375
This amount (indemnity) should be paid to you in addition to payment of the 31 days unused leave. The amount of KD 210 the company says it will be paying you is completely off the amount you are entitled to get.

 

SOURCE : ARABTIMES

20 Dec, 2019 0 4269
Posted Comments
Popular News
all-employees-to-receive-full-salary-of-april-month-without-any-deduction_kuwait
All Employees To Receive Full Salary Of April Month Without Any Deduction Citizens and expatriates will receive their full salaries in April without any loan deduction or other consumer installments, reports Al-Anba daily. The April salaries will be paid before the holy mon... April 05, 2020 1 14490 Category: General
legal-action-against-sponsors-encouraging-workers-to-leave-mahboula-area_kuwait
Legal Action Against Sponsors Encouraging Workers To Leave Mahboula Area Kuwait Ministry of Interior (MoI) stopped expatriate workers from leaving Mahboula Area, south of Kuwait City, as instructed by their sponsors and ordered them to return to their homes, the ministry s... April 06, 2020 0 11244 Category: Coronavirus
complete-lockdown-in-jleeb--mahboulla-for-two-weeks-curfew-extended-till-6-am-in-other-areas-official-holiday-extended-till-april-26th_kuwait
Locck Down Jleeb & Mahboula and Curfew Time Extended The council of Ministers, in its extra ordinary cabinet meeting today decided to extend the curfew hours until six in the morning. The curfew will be from 5:00 pm till next day morning 6:00 am In a... April 06, 2020 0 7025 Category: Coronavirus
kuwait-oil-company-secretary-tests-positive-with-coronavirus-in-ahmadi_kuwait
Kuwait Oil Company Secretary Tests Positive With Coronavirus In Ahmadi An Indian secretary working for a contracting company for Kuwait Oil Company was found infected with coronavirus, Al Rai reported today. The paper said that 12 cases of contact with the secretary were... April 07, 2020 0 6829 Category: Coronavirus
no-decision-of-full-curfew-in-mahboula--farwaniya-and-jleebshyoukh-yet_kuwait
No Decision Of Full Curfew In Mahboula , Farwaniya And Jleebshyoukh Yet No official instructions have been received yet by the Ministry of Interior to impose full curfew in Jleeb Al Shuyouk, Mahboula and Farwaniya, as claimed by some social media sites. News circulating t... April 06, 2020 0 5201 Category: Coronavirus
curfew-extension-and-area-wise-curfew-discussed-in-a-meeting_kuwait
Curfew Extension And Area Wise Curfew Discussed In A Meeting Extending curfew hours as well as imposing area wise curfew, especially in areas with dense population of expatriates were among the several issues discussed by the ministerial committee in their meet... April 05, 2020 0 5050 Category: Coronavirus
legal-measures-will-be-taken-immediately-on-housing-bachelors-in-residential-areas_kuwait
Legal Measures Will Be Taken Immediately On Housing Bachelors In Residential Areas The Minister of State for Municipal Affairs, Eng. Walid Al-Jasim, has state that he has directed concerned departments in the municipality to receive complaints by WhatsApp 24727732 about housing bach... April 07, 2020 0 5037 Category: Automotive
decissions-taken-cabinet-today-in-kuwait_kuwait
Decissions Taken Cabinet Today In Kuwait Kuwait cabinet decision taken monday Night  - All Ministries, government agencies, public bodies and institutions have been disrupted by the spread of the new corona virus from Sunday 12/4/202... April 06, 2020 0 4406 Category: Coronavirus
77-new-coronavirus-cases-total-556-cases_kuwait
60 Indians among 77 new coronavirus cases , Total 556 Cases Ministry of Health today announced the confirmation of 77 new coronavirus cases in the country during the last 24 hours. The Ministry of Health spokesman, Dr. Abdullah Al-Sanad said that 1 case is for... April 05, 2020 0 4192 Category: Coronavirus
visit-visa-violators-can-leave-country-in-their-own-ticket-no-renewal-until-work-resumes_kuwait
Visit Visa Violators Can Leave Country In Their Own Ticket; No Renewal Until Work Resumes The Administration of Residence Affairs Department will not renew visit or commercial visas until after the ministry resumes its work which is slated to begin on April 14 if the virus cases subside, r... April 05, 2020 0 4094 Category: Visit Visa
View All
Visit Visa
Visit Visa
Indemnity
Indemnity
Dependent Visa Driving License Project Visa Termination
Termination
Civil ID Crime News
Crime News