Nowadays we are not getting our salaries on time - I decided to take up retirement

I have been working in a company for the past 25 years and recently I decided to take up retirement and resigned from the job... leaving the country for good. Nowadays we are not getting our salaries on time. Please advise how long will it take to get our benefits (indemnity).
Is there any rule that the company should give the benefits before we leave the country?

Name withheld
We can’t tell you how long it will take for the company to pay you your dues but this thing is certain - it has to pay you before you leave the company unless you come to some other arrangement with it. In fact, when you go to the Ministry of Social Affairs & Labor to cancel your contract, you will be asked whether you have received your dues and you will have to sign a piece of paper which states that you have received all your benefits.
In case you have not received your benefits, you can refuse to sign this document and also complain about the late payment of the dues.


I have been working with this company since March 1, 2005. My company gave me a notice that on Sept 10 that my company’s contract will be terminated on Nov 23 with army. Therefore, my service will be finished from Nov 23, 2012.
How should my company calculate my indemnity. My salary is KD 300 + KD 50 housing and transportation. They are calculating the first five years on my half salary and after 5 years full salary. Are they right in their calculations or should it be full salary from the beginning as they are terminating me.

Name withheld
First of all the termination notice should be of 3 months and if this period is not completed their it should pay you for the remaining period.
Secondly, the company is correct in its calculations of the indemnity. People mix between getting a certain amount of their indemnity on resignation, full amount on termination and calculation of the indemnity.
The method of calculation of the indemnity is always the same i.e. 15 days salary for each of the first five years and one month’s salary for each year after that. But remember that the number of days of the first five years have to be divided by 26 before multiplying with the salary.
After this calculation has been done, the company decides how much indemnity has to be paid. It is different for resignation and termination.
If you resign after over 3 years of service but less than 5 years, you get half of the indemnity that was calculated. If the service is over 5 years but less than 10 years, two-thirds of the indemnity and after 10 years the full indemnity. But if you are terminated, regardless of the service, you get full indemnity.
In your case you have 6 years 9 months service. Salary KD 300+50 = KD 350.
So, your indemnity will be as follows:
1. First five years = 15 days x 5 = 75 days ÷ 26
= 2.88 months salary.
2. For the 1.75 years after that = 1.75 x 1 month’s salary
= 1.75 months salary.
3. Total = 4.63 months salary at KD 350 a month.
So indemnity will be KD 1,620.500
Now this is the full amount that you will get. If you had resigned, you would have got two-thirds of this total. So this is how the indemnity is calculated.


I am an Indian. My salary on the work permit is KD 460, but I am getting KD 560 now after receiving an increment. But my salary has not been updated in the work permit. As per contract my basic salary is KD 325 and remaining HRA allowance.
Now I have resigned from my company after 6 years of service. My company says, they will pay indemnity according to my basic salary only. Please let me know how to calculate indemnity and how much amount should I receive.

Name withheld
As the law says, you are supposed to get your indemnity calculated on the last ‘remuneration,’ which includes the basic salary and all the allowances that are paid to you at regular intervals. So your company should calculate the indemnity on the ‘remuneration’ which is KD 560. It doesn’t matter if your work permit has not been updated. That is the salary you get and I am sure there are records which show that you are getting that salary.
So your indemnity will be calculated on KD 560 as follows:
First five years: 15 days salary for each year = 75 days ÷ 26 = 2.88 months salary.
1 month’s salary for the 6th year: Total indemnity = 3.88 months salary
= 3.88 x 560
= KD 2,172.8

Read By: 2605
Comments: 0

You must login to add comments ...
About Us   |   RSS   |   Contact Us   |   Feedback   |   Advertise With Us