Article List
Service Indemnity & Leave Salary

I have been working as a supervisor in a private restaurant company from May, 2010. I will be submitting my resignation in April 2014 due to some personal issues for which I have to go to my country to take care of my children. I took my last annual vacation in December 2012. My basic salary is 210 KD + 20 KD rent allowance (fixed) every month. Please clarify how much I will receive as service indemnity and leave salary?

Name withheld
Firstly, because you will have worked over three years but less than five years (just over four years in your case) you will receive half the indemnity.

For these four years and two months service, you will get 15 days for each year = 62.5 days but these 62.5 days have to be divided by 26 and multiplied by your salary to arrive at your indemnity = 62.5 /26 x KD 230 (because the allowance has to be included in the calculations) = KD 552.

As your service was over three years but less than five years, and you resigned, you will only receive half of the above amount = KD 552 / 2 = KD 276 And for the annual leave entitlement, you will be entitled for the leave accumulated for just over one and half years.

As we don’t have the exact dates of when you returned from the last leave that you availed, we will work on approximation and consider your leave balance to be 45 days.

These 45 days must divided by 26 and multiplied by your “remuneration”, i.e. 45 / 26 x KD 230 = KD 398. So, the total amount that you should get – for both the accumulated leave and indemnity – works out to be KD 398 + KD 276 = KD 674 approximately.