Monthly Gratuity Accrual for Kuwait

The application calculates the accrual of gratuity on a monthly basis. This is the amount that an employee is entitled to, if they're terminated at the end of that month and if they're eligible for payment. The monthly gratuity accrual calculation is done through

Here are the details that the monthly gratuity accrual considers to calculate the gratuity:

• Date of termination: The current pay period end date is taken as the date of termination.

• Length of service: All types of paid leave are considered in calculating the length of service. Unpaid leave isn't included.

• Base salary: The base salary for gratuity payment is calculated through the salary formula that you selected at the legal employer level.

• Termination initiator: The calculation assumes the employer as the termination initiator, and the employee is entitled to the full amount.

• Probation: If the employee is on probation, the accrual amount is zero.

• Company type: The entitlement is based on the company type and is captured on Kuwaiti Legal Employer Details.

  Note: If you're looking for information on Kuwaiti Legal Employer Details, refer to the section on Legal Entity HCM Information for Legal Employers and Payroll Statutory Units in the document Oracle Fusion HRMS (Kuwait): HR Implementation and Functional Considerations on My Oracle Support (MOS).

• Entitlement:

  • Government and Private Company: An employee is entitled to half a month's salary for the first 5 years and 1 month's salary for each additional year.

  • Oil Company: An employee is entitled to 1 month's salary for the first 5 years and 1.5 month's salary for each additional year.

• Maximum Limit: The total amount accrued must not be greater than 1.5 times the annual salary.