Thursday , April 26 2018

Is food allowance to be included in indemnity?

My salary is KD 550 and food allowance is KD 45. In my work permit KD 45 is not mentioned and company contract paper also nothing mentioned about food allowance. But in my salary account we are getting KD 45 every month. I want to know if the company terminates my appointment will this KD 45 be included in my indemnity calculation.

Name withheld

Answer: According to the Kuwait Labor Law, a worker’s indemnity must be calculated by using the latest remuneration which includes the basic salary in addition to all allowances paid at regular intervals. Coming back to your question the answer is that the KD 45 food allowance must be added to your monthly salary of KD 550 to arrive at the figure to be used in calculating your indemnity. We must however point out that a sizeable number of companies are in violation of the Labor Law by using the basic salary when it comes to calculating the indemnity. To nib this in the bud the worker must stand his ground and make sure that the correct thing is done even if this will mean filing a case at the Ministry of Social Affairs and Labor to seek redress.

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