I have shown my company your answer on the calculation of indemnity and how it is based on the total salary (basic salary and accommodation allowance, since the salary payment includes both). They say that it is a suggestion only but not in the law. They have asked for the act number or a copy of the labor law that states this point. Can you help?

Name withheld

Answer: We have stressed many times that the calculation of indemnity is based on the ‘remuneration,’ of an individual and this is in the law.
The ‘remuneration’ of any employee is the sum  of the basic salary and all the allowances. In this connection, your company can refer to Articles 51 & 55 of the new Kuwait Labor Law.