Indemnity calculation - End of service in Kuwait
I have already finished 7 years with my company and if I resign now how much indemnity money i will get?
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Indemnity calculation - End of service in Kuwait
Answers (5)
Richard
1 year ago
Hi good morning,
I just want some information regarding on my indemnity,
I started working here in Kuwait last June 15, to Dec.18, 2016.
My basic salary on my contract is kd300 till now,
I did the 3months notice to resign and it end last Dec. 18, and i still have 16 days unused leave as well,

Can you please help me to compute my supposed to be indemnity if how much will I get?

Thanks a lot and more power to you Friday market,
Regards

Richard
Lisa
2 years ago
Hi, I am Lisa and working in Kuwait as expat. My current company does not have an office in Kuwait however I manage the market there.
I have been working there for 5 years and plan to resign. Will I be eligible to recieve indemnity at the completion of 5 years when i resign even if my company's head office is not in Kuwait? Please help. Thank You
chi
2 years ago
What is the treatment if the employer terminates the contract of the employee or the contract expires if the employee rendered service of less than 5 years? Will he be entitled to any end of service benefit indemnity?
chi
2 years ago
What is the treatment if the employer terminates the contract of the employee or the contract expires if the employee rendered service of less than 5 years? Will he be entitled to any end of service benefit indemnity?
Sha
6 years ago
According to the Kuwait labor law. The worker shall be entitled to a 15 days remuneration for each of the first five years of service and one month remuneration for every year thereafter.

CASE 1:

If the employer terminates the contract or if the duration of the contract expired without being renewed then the worker should get full end of service benefit indemnity.

Example:

If you have worked for 10 years with 500 KD salary the end of service benefit indemnity is calculated as below.

1st five years 15 days x 5 = (75 days / 26 days) = 2.88 months.

Next five years 1 month x 5 = 5 months.

Total Months = 2.88 + 5 = 7.88 months

Total Service Benefit = 7.88 months x 500 KD = 3940 KD

CASE 2:

If the employee resigns after 3 to 5 years of service then the employee is entitled to get half of the end of service benefit indemnity.

Example:

If you resign and have worked for 4 years with 500 KD salary the end of service benefit indemnity is calculated as below.

Total months = 15 days x 4 = (60 days / 26 days) = 2.3 months.

Total Service Benefit = 2.3 months x 500 KD = 1150 KD / 2 = 575 KD


CASE 3:

If the employee resigns and worked more than 5 years and less than 10 years then the employee is entitled to 2/3 rd of the end of service benefit indemnity.

Example:

If you resign and have worked for 7 years with 500 KD salary the end of service benefit indemnity is calculated as below.

1st five years 15 days x 5 = (75 days / 26 days) = 2.88 months.

Next 2 years 1 month x 2 = 2 months.

Total Months = 2.88 + 2 = 4.88 months

Total Service Benefit = 4.88 months x 500 KD = 2440 KD x 2/3 = 1626.66 KD


CASE 4:

If the employee resigns and worked more than 10 years then the worker is entitled to get full end of service benefit indemnity.

Example:

If you resign and have worked for 13 years with 500 KD salary the end of service benefit indemnity is calculated as below.

1st five years 15 days x 5 = (75 days / 26 days) = 2.88 months.

Next 8 years 1 month x 8 = 8 months.

Total Months = 2.88 + 8 = 10.88 months

Total Service Benefit = 10.88 months x 500 KD = 5440 KD

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