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Sunday , December 8 2019

Indemnity calculation is based on remuneration received

I was terminated and the company HR told me that the indemnity was to be based on my basic salary only. My basic salary was KD 1441 and I was entitled to get up to KD 500 as a house rent allowance but company paid KD 450 as I produced a KD 450 receipt. So please advise.

Name withheld

Answer: The law says the calculation of indemnity should be based on “remuneration”, which according to the Kuwait Labor Law includes the basic salary and all the allowances that you receive regularly. This means that the calculation of your indemnity should be based on KD 1,891 (KD 1,441+KD 450) and not on any other sum. On the issue of the rent allowance, it is what you are paid that matters. Moreover, that is what you were paying to the landlord.

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