Indemnity should be calculated by using the latest remuneration

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Can you please let me how to calculate my service indemnity.

■ Salary – KD 450.

■ Car allowance – KD75.

■ Petrol – they give me a card twice a month (KD 15 each).

■ Having been working for more then 13 years.

■ We get a bonus every year but not a fixed amount.

Can you please help me in calculating my indemnity, according to the Kuwait Labor Law.

Name withheld
Answer: According to the Kuwait Labor Law the indemnity should be calculated by using the latest remuneration (although most companies are in violation of the Kuwait Labor Law by using the basic salary) which includes the basic salary plus all the allowances given at regular intervals.

In fact, the latest bonus is also included in the remuneration.

This is added to the monthly salary after dividing it by 12 (number of months).

So, all the allowances you are getting will be added to your salary to arrive at the remuneration.

We, however, can’t calculate your indemnity as you have not mentioned how much bonus you got this year.

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This news has been read 5398 times!