Tuesday , September 25 2018

# Indemnity calculation with annual leave

I had an inquiry regarding indemnity calculation but unfortunately I did not receive a reply for my previous mail.

My question was as follows: I have been working with my company since Dec 10, 2012 and I placed my resignation in Dec 2016 and the company accepted and gave me a notice period till 12th March, 2017.

My salary now is KD 390, and I have almost 35 days annual leave left as of February 2017. I have decided to stay till the last date of my notice period 12th March, 2017.

Name withheld

Answer: Your indemnity will be calculated as follows: By the end of the 3-month notice period you should have put in a total of 4.25 years.

Your indemnity calculation will therefore be as follows:

You get 15 days pay for each of the 4.25 years which is equal to 63:75.

You then divide this 63:75 by 26 (working days in a month) which is equal to 2.45 months pay.

You multiply 2.45 by your monthly salary of KD 390.

This will give you KD 955.500 but since you are resigning without putting in 5 years or more you are entitled to only half of this amount which is equal to KD 477.75.

For the balance of leave which is 35 days you have to divide this by 26 (working days in a month).

This will give you 1.34 months pay which is multiplied by your salary of KD 390 = KD 522.600.

Your total settlement will therefore be KD 477.75 x KD 522.6 = KD 1,000.350.