Indemnity Calculation For Terminated Staff

My basic salary is KD 550 Date of joining: Feb 1, 2014 Termination received 3 months notice period from: Sept 1, 2017 to Nov 30, 2017. Still leave balance: 11.18 day Please send me the clarification

Name withheld

Answer: The calculation of your indemnity will be as follows: Service: 3.75 years

Salary: KD 550 You have entitled to 15 days pay for each year of service = 3.75 x 15 = 56.25 days.

But these days must first be divided by 26 (working days in a month) = 56.25 divided by 26 = 2.163 months salary =2.163 x KD 550 = KD 1,189.650.

The balance of 11.18 days annual leave has to be divided by 26 (number of days in a month) = 11.18 divided by 26 = 0.43 month pay = 0.43 x 550 = KD 236.500.

So your total settlement is KD 1,189.650 + KD 236.500 = KD 1,426.150.

This amount you will receive in full became your services were terminated.

 

SOURCE : ARABTIMES

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