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Wednesday , August 21 2019

Calculation of annual leave salary

I joined in this company in 1/10/2018 my basic salary is KD 550 plus KD 180 is house rent allowance total KD 730 monthly they are giving. My question is how to calculate annual leave salary? From the basic or should I calculate HRA also?

Name withheld

Answer: The law says that all calculations of an individuals entitlements i.e indemnity, overtime and annual leave must be based on an employees remuneration which includes the basic salary and all the allowances regularly paid to the individual except for the transportation allowance which is not included in the calculation of the leave salary. With this explanation, it is clear that your annual leave salary will be calculated on KD 730 which means your basic salary plus your rent allowance.

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