Leave Salary Calculation in Kuwait

Leave Salary Calculation in Kuwait
Leave Salary Calculation in Kuwait

According to the Kuwaiti Labor Law currently in effect in 2024, the employee receives a leave salary based on his monthly salary, the number of actual working days, and the number of annual leave days that he did not take. The employer must provide this salary to the employee so that he does not expose himself to any of the penalties for violating the Labor Law.

Leave Salary Calculation in Kuwait

Leave salary in Kuwait is calculated based on the number of actual working days of the employee during the month. If the weekly holiday is two days, it is calculated based on dividing the monthly salary by 22 days, while it is calculated based on dividing the monthly salary by 26 days if the weekly holiday is one day, according to the current labor law.

How to calculate leave salary in Kuwait

The following table shows how to calculate leave salary in Kuwait:

Number of weekends How to calculate leave salary
1 day
  • Daily salary = monthly salary value ÷ 26 days
  • leave salary = Daily salary × Number of leave days
2 days
  • Daily salary = monthly salary value ÷ 22 days
  • leave salary = Daily salary × Number of leave days

Example for Leave Salary Calculation in Kuwait

The following table shows several examples of calculating leave salary in Kuwait:

Example Leave Salary Calculation
Ahmed has 10 Leave days according to the Kuwaiti labor law, and his monthly salary is 9,000 KWD. How much Leave Salary is he entitled to if his weekly holiday is two days?
  • Daily salary = 9,000 KWD ÷ 22 days = 409.09 KWD / Day
  • leave salary = 409.09 KWD / Day × 10 days = 4,090.9 KWD
Masoud has 12 Leave days according to the Kuwaiti labor law, and his monthly salary is 2,000 KWD. How much Leave Salary is he entitled to if his weekly holiday is two days?
  • Daily salary = 2,000 KWD ÷ 22 days = 90.91 KWD / Day
  • leave salary = 90.91 KWD / Day × 12 days = 1,090.92 KWD
Ahmed has 5 Leave days according to the Kuwaiti labor law, and his monthly salary is 2,500 KWD. How much Leave Salary is he entitled to if his weekly holiday is 1 day?
  • Daily salary = 2,500 KWD ÷ 26 days = 96.15 KWD / Day
  • leave salary = 96.15 KWD / Day × 5 days = 480.75 KWD
Ahmed has 20 Leave days according to the Kuwaiti labor law, and his monthly salary is 3,000 KWD. How much Leave Salary is he entitled to if his weekly holiday is 1 day?
  • Daily salary = 3,000 KWD ÷ 26 days = 115.38 KWD / Day
  • leave salary = 115.38 KWD / Day × 20 days = 12,307.6 KWD

Leave salary eligibility in Kuwait

The current Kuwaiti Labor Law stipulates that an employee is entitled to a leave salary based on the number of annual leave days that he did not take during the year. The calculation of this salary varies based on the number of leave days remaining for the employee in addition to the number of actual working days during the month.

Leave Salary Calculation in Kuwait Labor Law

The following table shows the provisions of the Labor Law related to calculating leave salary in Kuwait: [1]

Article number Article text
Article No. 70 The labourer shall have the right to a paid annual leave of thirty days. However, a labourer shall be entitled to a leave for the first year only after the completion of at least nine months in the service of his employer. Official holidays and sick leave days penetrating the leave shall not be counted in the annual leave. The labourer shall have the right to leave for the fractions of the year in proportional to the period spent in work, even if during the first year of service.
Article No. 71 The labourer shall have the right to be paid his due salary for the annual leave in advance before obtaining his leave.
Article No. 72 The employer shall have the right to determine the annual leave date, and may grant it partially upon securing the consent of the labourer after the expiry of the first fourteen days thereof. The labourer shall have the right to accumulate his leaves on condition that they shall not exceed the leaves of two years. Also, the labourer may obtain the leave in one time upon the approval of the employer. Moreover, annual leaves may be accumulated by the mutual agreement of both parties for more than two years.
Article No. 73 Without prejudice to the provisions of the above Articles 70 & 71, the labourer shall have the right to receive a cash equivalent against his accumulated annual leave days upon the expiry of the contract.
Article No. 74 Without prejudice to the provisions of the above Article 72, the labourer shall not have the right to assign his annual leave, with or without compensation. The employer shall have the right to reimburse from the labourer any salary paid by him against the leave if it is proven that he is working during his leave with another employer.
Article No. 75 The employer may give the labourer a paid leave for education in order to obtain a higher qualification in the field of his work, provided that the labourer shall be obliged to work for the employer a period equal to the education leave period which shall not exceed 5 years period. If the labourer is in breach of this condition, he shall be obliged to reimburse the salaries received by him during the leave period in proportion to the remaining period to be spent by the labourer in the work.
Article No. 76 The labourer who completes two continuous years in the service of his employer shall be entitled to a paid leave of 21 days for performing Haj rituals, provided that he should not have previously performed the Haj.
Article No. 77 The labourer shall have the right to a leave with full pay of three days upon the death of a first or second grade relative. A female Muslim labourer whose husband expires shall be entitled to a fully paid leave of four months and ten days as from the date of death for the period of waiting (iddat), provided that she shall not practice any work with a third party for the entire leave period. The conditions for granting such leave shall be organized by a decision from the Minister. Also, a non-Muslim female labourer whose husband passes away shall be entitled to be paid a full leave salary of 21 days.
Article No. 78 The employer shall have the right to grant the labourer a fully paid leave for attending Labour Periodic Conferences & Social Gatherings. The Minister shall issue a decision on the conditions, rules & regulations organizing this kind of leave.
Article No. 79 The employer may grant the labourer, upon his request, a special leave without pay in addition to the abovementioned other leaves.

Conclusion

Leave salary is calculated based on 3 basic factors: the employee’s monthly salary in the private sector, the number of annual leave days that the employee did not take, and the number of actual working days for the employee. Some employees work 22 days per month while others work 26 days per month.

Questions & Answers

Why does the value of leave salary differ from one employee to another?

The value of leave salary differs from one employee to another based on several factors, most notably: the value of the employee's monthly salary, and the number of actual working days.

What is the maximum value of leave salary in Kuwait?

The Kuwaiti Labor Law has not specified the maximum value of leave salary in Kuwait.

When does an employee get leave salary in Kuwait?

The employee gets leave salary in Kuwait at the end of service or upon requesting it according to the provisions of the law.

Is leave salary in Kuwait the same as end-of-service gratuity?

No, leave salary is different from end-of-service gratuity.

Can an employee be deprived of leave salary in Kuwait?

Yes, an employee can be deprived of leave salary in Kuwait in some cases stipulated by law.

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