The employee is entitled to indemnity at the end of his service according to the labor law in force in Kuwait. The method of calculating this bonus varies based on several factors, most notably: the length of service and the value of the total salary that the employee receives monthly.
What is Indemnity in kuwait
Indemnity is a bonus that an employee in Kuwait receives at the end of service according to the current labor law or based on the laws of the Public Institution for Social Security. The method of calculating this bonus for public sector employees differs from the method of calculating it for private sector employees and domestic workers.
Indemnity and Labor Laws in Kuwait
The current labor law stipulates the details of indemnity in Kuwait, and explains the method of calculating this bonus in addition to the cases in which the employee is deprived of the bonus. The law was keen to state the amount of the deduction from the bonus along with the cases in which the employee is also entitled to the deduction.
How to Calculate Your Kuwait Indemnity
To Calculate Your Kuwait Indemnity, Here’s how to do it:
- Indemnity for the First Five Years = ( Daily Salary × 10 ) × Number of Years
- Indemnity for Years Exceeding Five = ( Daily Salary × 15 ) × Number of Exceeding Years
- Indemnity for months and days beyond full years – For service less than 5 years:
- Monthly Indemnity = ( Number of Months ÷ 12 ) × ( Daily Salary × 10 )
- Daily Indemnity = ( Number of Days ÷ 365 ) × ( Daily Salary × 10 )
- Indemnity for months and days beyond full years – For service more than 5 years:
- Monthly Indemnity = ( Number of Months ÷ 12 ) × ( Daily Salary × 15 )
- Daily Indemnity = ( Number of Days ÷ 365 ) × ( Daily Salary × 15 )
- Paid Leave Balance Amount for Indemnity = ( Number of Paid Leave Days ) × Daily Salary
- Total Indemnity = First 5 Years Indemnity + Exceeding Years Indemnity + Monthly Indemnity + Daily Indemnity + Paid Leave Balance Amount
How to use Kuwait Indemnity Calculator
To take advantage of the Kuwait Indemnity Calculator, Just follow these easy steps:
- Step 1: Go to the indemnity calculator.
- Step 2: Rely on the calendar to add the start date of work.
- Step 3: Determine the end date of work using the available calendar.
- Step 4: Enter the salary value in the designated field.
- Step 5: Write the number of Unpaid Leave Days.
- Step 6: Click on the Calculate Indemnity icon.
Factors Affecting Indemnity Value in Kuwait
The following list shows the most important factors affecting the value of indemnity in Kuwait:
- Monthly salary of the employee: Indemnity in Kuwait is calculated based on the total monthly salary of the employee, which means that it increases with the increase in the salary and decreases directly with its decrease.
- Reason for leaving the service: The value of indemnity in Kuwait sometimes differs based on the reason for leaving the service; the employee is entitled to part of the bonus or is not entitled to anything from it if he leaves work before 10 years have passed with the same employer, as the law stipulates some cases in which the employee is deprived of this bonus.
- Total service period: As the total service period increases, the value of indemnity in Kuwait increases, while its value becomes low if the period of work with the same employer is short.
How to calculate Kuwait Indemnity for the government sector
Through the csc.net.kw Salary English service, an employee in the government sector can know his salary on which Indemnity is calculated. The following is the method for calculating the bonus according to the employee’s category = Pension settlement salary×12×10% ×5
- Indemnity For the second 5 years – For Those who do not deserve a pension = Pension settlement salary×12×12% ×5
- Indemnity For the third 5 years – For Those who do not deserve a pension = Pension settlement salary×12×15% ×5
- Indemnity For the years following the first 15 years of service – For Those who do not deserve a pension = Pension settlement salary×12×20% ×5
- Indemnity For Male pensioners up to the age of 55 – For Those who are entitled to a pension = One full month’s salary for each year of subscription, provided that it does not exceed 18 months.
- Indemnity For Female pensioners up to the age of 50 – For Those who are entitled to a pension = One full month’s salary for each year of subscription, provided that it does not exceed 18 months.
- Indemnity For Male pensioners up to the age of 56 – For Those who are entitled to a pension = Salary of 19 months
- Indemnity For Female pensioners up to the age of 51 – For Those who are entitled to a pension = Salary of 19 months
- Indemnity For Male pensioners up to the age of 57 – For Those who are entitled to a pension = Salary of 20 months
- Indemnity For Female pensioners up to the age of 52 – For Those who are entitled to a pension = Salary of 20 months
- Indemnity For Male pensioners up to the age of 58 – For Those who are entitled to a pension = Salary of 21 months
- Indemnity For Male pensioners up to the age of 58 or over – For Those who are entitled to a pension = Salary of 21 months
- Indemnity For Female pensioners up to the age of 53 or over – For Those who are entitled to a pension = Salary of 21 months
How to calculate Kuwait Indemnity for domestic workers
Indemnity for domestic workers is calculated on the basis of one month’s salary for each year of service, and the sponsor must provide this bonus to his domestic workers immediately upon the end of the contract. If the worker is not given this bonus, he can file a complaint with the competent authorities to obtain it.
Conclusion
Through the Kuwait How website, you can access the indemnity calculator in Kuwait. This website also provides all the information that employees in the public and private sectors need about this bonus, cases of deprivation from it, and other related details.