1. Salary of ten days for each year of service for the first five years and salary of fifteen days for each year of service for the subsequent years provided that the total of benefit should not exceed the salary of one year, for the workers that receive daily, weekly, partially or hourly salaries.

2. Salary of fifteen days for each year of service for the first five years and salary of one month for each year of service for the subsequent years provided that the total of benefit should not exceed salary of one year and half, for the workers that receive monthly salaries.

3. The employee is entitled to receive full end of service's benefit in case the term of the contract ends without being renewed; or in case the contract is terminated by the employer; as well as in cases under which the employment contract is terminated under the provisions of Articles (48, 49, and 50) of the Law no. (6) of 2010 on the 'Employment in the Civil Sector'.

4. The employee is entitled to receive 50% of the end of service's benefit if he terminates open employment contract himself after he completes a service period of 3 years and less than 5 years. In case the employee completes a service period of 5 years and less than 10 years, he shall have two third of the end of service's benefits. If the employee spent a service period of 10 years, he shall be entitled to full end of service's benefits.

5. The end of service's benefit is calculated on the basis of the last salary received by the employee inclusive of the basic wage and all the benefits that he usually gets as, bonuses, rewards, commissions, grants, or donations periodically received. Hence, these allowances received periodically by the employee including housing and transportation allowances shall be deemed from his salary, excluding any allowances that may the worker receive as compensation for any expenditures incurred due to work.

6. Amounts paid for end of service's benefit shall not be accepted for any employee still on duty.

7. The employee is not entitled to receive the end of service benefits for the periods of absence or special leaves with no pay.

8. The application of the above rules when calculating the end of service's benefit shall have no prejudice to any rights or merits set in the work contract or set up in accordance with the applicable rules in any body, institution or employer. However, such rules shall be submitted to Tax Department for its prior approval.

9. These provisions shall be applicable as of the date of publication of the Law no. (6) of 2010 on Employment in the Civil Sector in the Official Gazette on 21/2/2010.

Second: Special and exceptional cases relating to the end of service's benefit shall be separately treated after consulting the Tax Department in this regard.

Example:

Computation of end of service benefits which companies are obliged to pay to their employees receiving monthly salaries.

An employee starts his work on 01/01/2011, the contract stipulates the following:

• The salary shall be paid at the end of each month

• Basic salary KD 500

• Housing allowance KD 200

• Transportation allowance KD 100

The salary has been increased in 2014 to KD 550; in 2017 it became KD 600.

It is required to calculate the provision for end of service indemnity on 30/6/2018 in the following cases:

1. Employee's termination at this date

2. Employee's voluntary resignation

A. In case of Employee's termination:

* The First year ended 31/12/2011

The monthly salary in full concept according to the provision of Article 52 of the Law no. (6) of 2010 = (500 + 200+100) = KD 800

* The Second fiscal year ended 31/12/2012

* The Third year ended 31/12/2013

* The Fourth fiscal year ended 31/12/2014

The monthly salary = (550 + 200+100) = KD 850

* The Fifth fiscal year ended 31/12/2015

* The Sixth fiscal year ended 31/12/2016

The end of service's benefit provision charged for the year = one month salary in accordance with the law's provision = KD 850

* The Seventh fiscal year ended 31/12/2017

The monthly salary = (600 + 200+100) = KD 900

The end of service's benefit shall be calculated as follows:

The end of service's benefit provision due of Seventh Year (salary for month) = 900

Amount charged for the year = (the value of due provision for the year + the provision differences for the previous years resulting from the salary increase during the year) = (900+194) = KD 1094

* The period ended at 30/6/2018

The end of service's benefit for year = salary for month according to law.

It is noted that in case the employee has been terminated, he shall be entitled to receive the end of service's benefit of KD 4,846 and that the above mentioned provision charged for the years shall not be considered unless on actual payment.

2- Employee's voluntary resignation

The following must take into account:

1. In case the employee resigned during the first three years from 2011 until before 31/12/2013, he shall not receive end of service's benefit.

2. In case the employee resigned after the first three years and before the end of five years (during the years from 1/1/2011 till before 31/12/2015), he shall receive 50% from the accounted end of service's benefit.

3. In case the employee resigned after first five years in his work and before the end of ten years (during the years from 1/1/2016 till before 31/12/2020), he shall receive two third of the accounted end of service's benefit.

4. In case the employee resigned after ten years of work (from 1/1/2021); he shall receive full of the accounted end of service's benefit.

The Tax inspector may verify the correctness of the Incorporated Body computation of the end of service benefits through this brief method:

1. Employee's termination:

The last monthly salary that the worker has received according to the provisions of Article 52 of Law no. (6) of 2010 = (600 + 200+100) = KD 900

Years 2011/2015

Years 2016/2017

End of service benefits = KD 900 × 2 years × 1 month for each year = KD 1,800

The period from 1/1/2018 till 30/6/2018

End of service benefits = KD 900 × 1 month for each year × 6/12 = KD 450

Total end of service benefits due to the employee on 30/6/2007 = KD 4,846

Note:

For allowances received by the employee and which are not included in the salary, those are allowances that are payable to the employee as compensation for the incurred expenditures due to work for example:

1. Travel allowance that is paid for the messengers are not be included within the salary items.

2. Telephone allowance that is paid for telephone marketers are not included within the salary elements.