Kuwait Court of Cassation principle number 771

Salary, for insured persons in the private and oil sectors, is the wage pursuant to the provisions of the Private Sector Labour Law. - The retirement pension prescribed for Kuwaiti workers in the private and oil sectors for which the Social Insurance Institution is liable. What is meant thereby. Its calculation on the basis of the wage under the Labour Law. - The meaning of wage under the Private Sector Labour Law. Overtime pay falls outside the scope of the wage on the basis of which the retirement pension is calculated. This is not affected by the employer being bound with its workers by a pension, gratuity or savings scheme that includes overtime pay. Rationale thereof. - The more favourable benefit is an independent right of the worker that must be fulfilled upon termination of service; it differs from wages and is not considered an element thereof. It is not included in the wage on the basis of which the retirement pension is calculated.