Indemnity Calculator as per Kuwait Law
Kuwait Indemnity Law & Calculator for Free :
This version is still under observation to make sure that the results are being executed as per Kuwait’s Law. If you find any error, please let us know. Your cooperation will be highly appreciated.
Indemnity Calculator as per Kuwait Law
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- The worker deserves 15 days indemnity during the first five years, and increases to one month after the first five years.
- An employee who resigns, but does not complete three years with the employer, does not deserve an indemnity.
- But if the employee completes three to five years and resigns, the employee then deserves half of the indemnity, if he completes five to 10 years, then he deserves two-thirds of the indemnity.
- If the worker completes 10 years of work then resigns, he deserves full indemnity which is one month salary for each year spent at work, according to Article 51 of Labor Law in the private sector, and should not exceed 18 months.
What is Remuneration ?
“Remuneration means the basic payment the worker receives or should receive in consideration of his work in addition to all the elements stipulated in the contract or the employer by-laws.
“Without prejudice to the social allowance and the children’s allowance granted by the virtue of Law 19 of the year 2000, the remuneration shall include the payments made to the worker on periodic basis such as bonuses, benefits, allowances, grants, endowments or cash benefits”. According to the Kuwait Labor Law, must be calculated according to your remuneration and not on your basic pay.
Indemnity Law & Calculator was last modified: May 26th, 2019
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My salary is KD 450. I want to know how much will I get after 15 years of service with the same sponsor and workplace?
I really need your good advice and calculations because some of my co-workers have left the company already but they were not satisfied with what they received.
Your insight and advice will be appreciated, more power too to your great column.
Name withheld
Answer: First of all you must understand that after you complete 10 years service you are entitled to the full indemnity and nothing can be deducted.
The calculation of the indemnity will be as follows:
Salary = KD 450
Service = 15 years
So you will get 15 days pay for each of the first five years = 72 days but this has to be divided by 26 (working days in a month) Therefore, this will work out to 2.88 months pay
Then you will get one month’s pay for each year after that and this will work out to 10 months pay
Total indemnity = 12.88 months pay = 12.88 x KD 450 = KD 5,796
So, this is the amount that you must get and not a fil can be deducted from this total. If the company tries to calculate the indemnity in any other way you can file a complaint against the firm at the nearest Labor Office in your area or take the firm to court.
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