Monday , September 24 2018

Does Private health Insurance, Mobile phone bill, Mobile phone come under Indemnity?

I would be really thankful if you could please help me in providing your valuable legal advice as I have resigned from my current employment after working for 22 plus years. In addition to my monthly salary, I was receiving the following in-kind benefits and would like to know if, the value of these should be added while calculating the average remuneration for my final indemnity:

1. Private health insurance for myself and family, receiving for the last five years

2. Monthly mobile phone calls and data package

3. Telephone handset every two years (Last one was received before 6 months)

Name withheld

Answer: According to Kuwait Labour Law, the indemnity should be calculated by using the latest remuneration which includes the basic salary plus all the allowances given at regular intervals. Indeed the latest bonus is included in the remuneration. This is, added to the monthly salary after dividing it by 12 (number of months in a year).

Having said the above, we are not convinced that the three items you mentioned strictly fall within the category of allowances like housing, food, transport and bonuses; we are therefore unable to make a categorical statement on them vis-a-vis your indemnity calculation.

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