Wednesday , January 24 2018

Indemnity calculation for Outsourced company

I am working for an exchange firm … outsourced from an HR company past five and half years. I resigned from there. I am getting KD 579 as last salary. 21 days leave days are balance. How much indemnity I have the right to get?

Name withheld

Answer: Your indemnity will be calculated on your last remuneration which is KD 579.

The calculation will be done as follows.

Service: 5.5 yrs

Salary: KD 579

For the first 5 years you get 15 days salary for each year = 75 days but these days have to be divided by 26 (working days in a month) = 2.88 months salary.

For the next 0.5 years you get half a month’s salary = 0.5

Total indemnity = 2.88 + 0.5 = 3.38

Salary = 3.38 x KD 579 = KD 1,957.02

But as you are resigning with over 5 years service but less than 10 years, you are entitled to two-thirds of this total = KD 1,304.68.

For the balance of 21 days annual leave you have to divide this by 26 (working days in a month) = 21 divided by 26 = 0.807 month salary = 0.8076 x KD 579 = KD 467.600.

So your total settlement will be KD 1,304.68 + 467.600 = KD 1,772.280.

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