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Calculating Annual Leave

Calculating Annual Leave in Kuwait

Workers in Kuwait are mostly not aware of calculating annual leave pay. Many are confused regarding the 26 days and the 30 days in the calculation formula. Salary / 26 working days x 30 leave days = annual leave pay. Most of the Companies are using this, as per Kuwait Labor Law; Section Three – Paid Annual Leaves, Articles 70 to 79.

Annual Leave Pay Formula

Total Salary = is the Amount that is written on your Contract that signed by both parties.

26 days = Number of working days in 1 Month

Days of Leave = is the number of days of your leave that approved and signed by your Employer. (30 days in 1 year)

(Article 70) The worker shall be entitled to a 30-day paid annual leave. However, the worker shall not be entitled to leave for the first year of work except after at least 9 months of service for the employer. Official holidays and sick leaves during the year shall not be counted as annual leave. The worker shall be entitled to leave for the fractions year in proportion with the period he spent in actual service, even the first year of service.

Kuwait Labor Law

The Salary is divided into the Number of Working days in 1 Month to get your Daily Salary Rate.

Your Daily Salary Rate will be multiplied to the Number of Leave Days, then you will get your Annual Leave Pay Rate.

Please refer to this example below from Arab Times Online.

Answer: As leave is for 30 working days, the annual leave salary would be worked out as follows. The salary for calculation: KD 350. This salary must be divided by 26 (working days in a month) = KD 350/26 = 13.461. As the annual leave is for 30 working days this figure must be multiplied by 30 = 13.461×30 = KD 403.846. You are therefore entitled to an annual leave pay of KD 403.846 and not KD 350 as you indicated.

Arab Times Online

Calculating Annual Leave

The Time Taking Your Annual Leave Pay

“This is only a Scenario”

A worker requested to go on vacation and his Employer approved his request. Then, the biggest problem just happened.

His Employer told him that he will get his Annual Leave Pay once he gets back again in Kuwait. Basically, this Employer will not be paying his hard-earned money until he will go back to work to his Company.

This is indeed against the Labor Law of Kuwait.

Article (71) The worker shall be paid for his annual leave before taking such leave.

Kuwait Labor Law

Is it CLEARLY stated that the Annual Leave Pay should be given to the Worker BEFORE going out from Kuwait to his Country of Origin for vacation leave.

My Point of View

Imagine, this Worker spends time working for 9 months to 1 year to the Company of the Employer, he is already entitled to the Annual Leave Pay from this period of service. The Employer should understand that most of the Workers in Kuwait don’t have enough savings to bring for their respected families. 90% of them are sending their salary each month to support their family. If they can’t able to get their Annual Leave Pay, that must be paid BEFORE their departure date, do you think this will be good for them?

Employers should understand their Workers in some important situations. This is the reason why lots of these Workers are resigning after taking their vacation leave. Do not blame all the Workers why they are resigning from these type of Companies/Employers. As I always writing here “Your Success is in the hands of your Workers. Treat them fair, pay them right and well; they will work hard more than what you expected”.

Mostly, our fellow Workers who are in the higher position are doing this unfair thing. These Company Admins, HR’s, Operations Managers, should understand this either. You should know that these Workers have their own families as well, same as you.

Let’s make this beautiful Country fair to all the people who are living and working here.

Taking Annual Leave Pay After Finishing The Contract

Article (73) Without prejudice to the provisions of Articles 70 and 71, the worker shall be entitled to a cash consideration for all his accumulated annual leaves upon the expiry of his contract.

Kuwait Labor Law

As stated in the Article number 73 of  Law No. 6 of the year 2010 “Promulgating the Law of Labor in the Private Sector”; Section Three – Paid Annual Leaves, the worker has the right to get the Annual Leave Pay upon the expiry of his contract.

Here in Kuwait, there are two types of Visa 18 Workers, the Locally hired (A Migrant Worker who got his release on their first Company and transferred to the other Company) and the Company of Origin Worker ( A person who is working his years of contract to the Employer who provided him a job from his Country of Origin to Kuwait). The contract of the Locally Hired is only 1 year, or can it can be 2 years if approved by the Worker. The contract of the Company of Origin Worker is 2 years as stated in the contract signed by the Worker from his main Country of Origin. There is a law in Kuwait that once a Company of Origin Worker completed his/her 3 years of service, he/she will be entitled to get his release from his current Company of Origin.

Under Article 73 of Section Three – Paid Annual Leaves, it is clearly stated that you should be entitled to get your Annual Leave Pay once you completed your signed contract.

I hope this article is clear enough to answer all your questions regarding the calculation of annual leave pay for all the Workers in Kuwait. I will be updating this post for more helpful information.

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