Indemnity Calculator as per Kuwait Law

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.

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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 

Filed in: Tagged with: how to calculate indemnity • indemnity • indemnity calculation • indemnity calculator • indemnity calculator Kuwait • indemnity in Kuwait • indemnity law in Kuwait.