The Gratuity Calculator Kuwait lets you know how much you must receive upon termination of employment. In this case, the labor laws of the country establish the rules so that the employee receives a fair payment. Therefore, it is essential to know the ins and outs of calculating this benefit so that you can tell if the employer is being fair.
In this article, you will learn how to make the aforementioned calculation according to the service time of a worker in the company. Likewise, you will know in which cases the worker not receive the benefit and in which he is.
Gratuity Calculator Kuwait 2023
Gratuity in Kuwait is remuneration received for employees at the end of their service. Likewise, this liability is based on the total amount accumulated during the service time of the employee in the company. In this sense, employees must receive this benefit if they are not candidates to receive the benefit of the Social Security Law.
Employee eligibility for end of service benefits Kuwait
The Gratuity Calculator Kuwait states that employees must receive the end-of-service bonus for the following reasons:
- Death of employee
- Work inability
- For extended sick leave beyond the statutory time
- The bankruptcy of the business or if the company closed permanently
- If the employee terminates the contract because of her marriage in the years after the date on which she got married.
The base amount used by the gratuity calculator Kuwait
To know how to compute gratuity in Kuwait, you must take into account Article 62 of the Labor Law. In it, it establishes that the calculation of this stipend is based on the last salary received by the employee.
In contrast, if the worker receive daily wage, then the average will be established according to the time worked by days. This is according to the Kuwait gratuity calculator and based on the last 3 months of work done by the employee.
Days required to accrue gratuity for end of service benefits
The way to make Kuwait end of service calculation will depend on the accumulated time. Thus, it is 15 days of salary for the first 5 years of work plus 1 month for each year worked after that.
Effects of vacations taken without pay during the period of service
The leave time taken by the unpaid worker does not count when establishing the period of service in the company. This means that days of leave without pay are not cumulative for the benefit. In addition, the employer reduces service time by days of service as in the case of unpaid leave.
Reasons an employer can withhold the Kuwait labour law end of service benefits
Under Article 41 of the Labor Law of the country, the employer can terminate the contract without prior notice, compensation, or any benefit in the following cases:
- When an employee has caused great losses to the company due to a mistake made.
- In a case where the employee got the job by deceit.
- If the company received harmed because the worker exposed secrets that have to do with the establishment.
Compensation limit on how to calculate end of service in Kuwait
The end of service Kuwait payment is one and a half years, and no more, for workers who earn monthly wages. In addition, this benefit must not exceed the 1-year pay established for daily, weekly, or hourly wage employees.
Payment of gratuity according to the type of termination of the employment contract
If the termination of the contract is by the employer, then the employee receives remuneration according to Article 51. In the same way, if it is the employee resigns, the bonus will be according to Article 53 of the Labor Law. This is how to calculate the gratuity in Kuwait under these conditions.
Kuwait labor law end of service benefits
Taking into account the gratuity calculator Kuwait, the worker will receive full benefits for termination of the employment contract. Likewise, you must consider the following cases:
- In case of termination of the employment contract and its non-renewal
- If an employee terminates the contract because of her marriage one year after the date of marriage
- In the event that the contract ends due to the death of the employee or if he is unable to perform his duties.
- Also in case of illness where the worker exceeds the leave for this reason. However, a certified doctor must certify this situation.
- If the employer files for bankruptcy
- If the business has closed permanently
- In the event that a worker terminates the contract under Article 48.
- If the employer does not comply with the terms of the contract or other provisions of the law.
- If the employer or subordinates attacked the employee
- In the event that the medical arbitration committee of the Ministry of Health determines that the employment puts the health or safety of the worker at risk.
- If the employer or subordinates commit fraud regarding the working conditions agreed upon when signing the contract
- When the employer accuses the worker of some offense and a sentence proves his innocence and he is absorbed.
- If the employer or delegate performs an act against morality against the worker.
Indemnity calculation for 4 years Kuwait
According to the result of the gratuity calculator Kuwait, employees who receive daily wages must get compensation. Likewise, for workers who leave employment after 3 years, they will receive 10 days of annual salary. The worker gets 15 days of compensation in the first five years and it will increase by one month after five years.
An employee who resigns but does not comply with the statutory three years with the employer does not receive compensation. In contrast, if the employee completes 3 to 5 years and ends the contract, they will be able to receive half of the compensation. Likewise, if he turns 5 to 10 years old, he will be entitled to receive 2/3 of the compensation.
Furthermore, if the employee worked 10 years and resigns, must receive full payment, that will be 1 month for year of service. This is on Article 51 of the Labor Law in the private sector. Likewise, this should not extend beyond 18 months.