What is Indemnity

Indemnity is also known as End of Service benefits which will be paid when you are leaving a company. Every individual working in Kuwait has the right to get end of service benefits.

Expats in Kuwait are not much aware of the labor law, how the indemnity will be calculated, in this article we will discuss about who are eligible to get indemnity and how the indemnity will be calculated

The Employees often consult legal consultants to clear their doubts regarding Termination Indemnity. . We will try to cover queries related to indemnity as much as possible, so the people can take benefits by getting knowledge on these terms and condition of Indemnity

 

Who is Eligible To Get Indemnity

According to Kuwaiti Labour Law, any employee working in the private sector, whether Kuwaiti or foreign, is eligible to claim Termination Indemnity. However, some organizations pass false statements to avoid paying it to their employees, which is illegal under the law.

for Kuwaitis Some organizations play another game with their employees since they pay some contributions to their Social Security Funds. The Social Security fund of any employee is credited by both the employee and employer according to the law. Each party, the employee and the employer, pays a fixed percentage. The Organization sometimes decided to pay the Social Security in full with an agreement with Kuwaiti Nationals that the Employees Share of Social Security Fund could be deducted from Termination Indemnity. This kind of understanding between the two is not Legal, Organisations can not bargain with the employees in this manner.

Organisations are supposed to Share the fix percentage in the Social Security Fund of any employee and to pay the Termination Indemnity as well.

 

How Indemnity is Calculated

 

It is not rocket science to calculate the same. It is generally done by Accountants for the people, but anyone can learn in some easy steps from the Table (Mentioned below); I prepared this table for the readers for their ready reference. Any Employee who is paid the remuneration monthly,This table can be useful to you.

Indemnity Calculation Table

Indemnity Rules

Indemnity calculations for daily-paid workers

1. Employees who work for less than three years are not eligible for indemnity
2. IF the employee works with the current company for more than 3 years and less than 5 years then he is eligible for 1/3 of monthly salary * no of years worked
3. If the employee works with the current company for more than 5 years and less than 10 years then he is eligible for 1/2 of monthly salary * no of years worked
4. If the employee works with the current company for more than 10 years then he is eligible for Monthly salary * No of years worked
 

Indemnity Calculation for the workers who are paid on monthly basis

1. A worker is entitled to 15 days of indemnity during the first five years, and one month after that.
2. Employees who resign without completing three years with their employer are not entitled to an indemnity.
3. If the employee completes three to five years and resigns, then he is entitled to half of the indemnity, if he completes five to ten years, then he is entitled to two-thirds.
4. Upon resigning after completing 10 years of work, the worker is entitled to full indemnity, which equals one month's salary per year spent at work. This should not exceed 18 months.

 

From The Below Links You can Find All Question and Answers Related To Indemnity So You Get Brief Idea

Indemnity For Below 3 Yrs Of Service

Company Calculating Indemnity On Lower Amount

Indemnity Calculation For Those Who Resign From Pvt. Company

Loophole In Indemnity Law If Less Than KD 5,000

Notice Period, Termination Indemnity And Transfers

Company Never Pays For Public Holidays Will It Be Included In My Indemnity?

Rounding Up Indemnity Figure

Settlement / Indemnity For A Nurse Working In MOH

What Should I Do To Get My Final Settlement Or Indemnity

Indemnity Still Not Paid – Expat Leaving Kuwait For Good

Indemnity Calculation – Resigning Due To Health Issues

Retiring From Job – Indemnity Calculation

New Company Formed, Residence Transferred To New Company – Will Indemnity Continue

Indemnity And Salary For Terminated Employee

Terminated By Company Before 1 Year – Indemnity Issue

Does Private Health Insurance, Mobile Phone Bill, Mobile Phone Come Under Indemnity

Company Is Telling To Say Indemnity Received During Cancellation At The Immigration Department

Indemnity Salary Calculation On 26 Days Not 30 Days

Company Has A History Of Not Paying Indemnity  What To Do In This Case

No Indemnity For Service Below 3 Yrs

Court Judgment On Indemnity And Overtime Given In Staff Favour, But American Company Has Changed Name 3 Times

Indemnity Ruling In My Favor, But Owner Keeps Zero Balance Bank Account

Bonus Calculation In Indemnity

4 Months Passed Indemnity Still Not Paid

Is Food Allowance To Be Included In Indemnity

Indemnity Still Not Paid By Company After 5 Mnts  Expat Leaving Kuwait For Good

Indemnity Calculation For Terminated Staff

Indemnity For Terminated Staff And Utilization Of Leave During Notice Period

Company Says To Get Indemnity Have To Work For 5 Yrs

Indemnity Not Paid Even After 10 Mnts After Resigning  What To Do

Indemnity Calculation For Outsourced Company

Indemnity Not Received

Indemnity Issue With Kuwait University

What To Do If Indemnity Is Paid By The Company

Indemnity Issue

Annual Leave EOSB Calculation Plus Air Ticket Included In Indemnity

Company Paying Half Indemnity On Resigning And Half Later

Resigned After 3 Years  Indemnity And Transfer Issue

Indemnity Calculation With Annual Leave

How Much Indemnity Will I Get From My Company

Company Says Will Pay Indemnity As Mention On Work Permit And Not On What Is Transferred In Bank

Indemnity After 18 Yrs Of Service

Calculation Of Indemnity

What To Do When Labor Court Gives Decision In Your Favor And The Company Still Doesn't Settle Your Indemnity

Indemnity Calculation After Resigning

Claim Indemnity, Sell Car, Close Bank Account, Transfer Of House Tel Or Electricity  Procedure

Notice Period And Indemnity Settlement

Will Housing Allowance Included In My Indemnity Payment

Indemnity Is Calculated On Basic Salary Plus All Allowances As Per Kuwait Labor Law

Residence Transfer And Indemnity For Embassy Staff

Indemnity Calculation With Allowances

Indemnity Calculation After 3 Months Notice

Indemnity Calculation For 3 Yrs And 1 Month Of Service , Resigned

What Is The Max Pay For Indemnity

 

 

 

 

 

 

 

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