Gratuity
We have a doubt about computation of indemnity. It is very clear for first five years you get 15 days salary for each year but it’s not clear after that.
After five years how much am I entitled to? Is it one month salary or 30 days salary? My company argues that as per Kuwait Labour Law, Article 51, an employee over 5 years is entitled to one month pay as indemnity for each year.
Name withheld
Answer: Your company is right. After the first five years, you are entitled to one month’s salary for each year and not 30 days.
People may question the difference between these two. Well, there is a lot of difference. For example if you are earning KD 260 a month, the monthly entitlement will get you is the same amount i.e. KD 260; but if it had been 30 days, as in the case of annual leave, the calculation would be as follows: KD 260 divided by 26 and then multiply by 30, this equals KD 300, which means you would get more.
So your indemnity will be based on the calculation of a ‘month’ and not 30 days.