Kuwait End of Service Indemnity Calculator
Kuwait End of Service Indemnity Calculator
The end-of-service indemnity under Kuwait’s Private Sector Labour Law No. 6 of 2010: 15 days’ pay a year for five years, a month’s pay a year after, capped at 18 months — and the share you keep if you resign.
Kuwait end-of-service indemnity
Remuneration KWD 1,000 a month (an example), 7 years and 6 months, contract ended by the employer, 26-day month
The indemnity under Articles 51 and 53
- W
- the last monthly remuneration (basic plus contractual allowances)
- D
- days in a month for a day’s pay: 26 in common Kuwait practice, or 30
- S
- years of service, part years in proportion
- R
- 1 unless you resigned: then 0 under 3 years, ½ from 3 to 5, ⅔ over 5 and under 10, 1 from 10
Worked example
Remuneration KWD 1,000 a month (an example), 7 years and 6 months, contract ended by the employer, 26-day month
Service: 7 + 6 ÷ 12 = 7.50 years
First five years: 15 ÷ 26 × 5 = 2.8846 months' pay
The other 2.50 years: 2.50 months' pay
Indemnity = 1,000 × 5.3846 = KWD 5,384.62
Had you resigned (over five, under ten years): two thirds, KWD 3,589.74
Remuneration of 1,000 a month (an example), 26-day month
| Years | Employer ends or contract expires | You resign | Share on resignation |
|---|---|---|---|
| 2 | $1,154 | $0 | none |
| 3 | $1,731 | $865 | half |
| 5 | $2,885 | $1,442 | half |
| 6 | $3,885 | $2,590 | two thirds |
| 9 | $6,885 | $4,590 | two thirds |
| 10 | $7,885 | $7,885 | full |
| 15 | $12,885 | $12,885 | full |
| 25 | $18,000 | $18,000 | full |
How Kuwait’s end-of-service indemnity works
Article 51 of Kuwait’s Private Sector Labour Law No. 6 of 2010 gives a monthly-paid worker an end-of-service indemnity of 15 days’ remuneration for each of the first five years of service and a month’s remuneration for each year after, with part years in proportion and a ceiling of a year and a half’s remuneration. It is calculated on the last remuneration, which Article 55 defines as the basic pay plus the allowances fixed by the contract, not bonuses or expense allowances. Workers paid by the day, hour or piece earn 10 days a year for five years and 15 days after, capped at a year’s pay; this page does not calculate that case.
On the example, 7 years and 6 months at KWD 1,000 a month earns 5.38 months’ pay: KWD 5,384.62. If your employer turns 15 days into a fraction of a month with a 30-day month instead of 26 working days, the same service gives KWD 5,000.00. The law does not settle the divisor clearly, so check your employer’s figure.
Resignation. Article 53 reduces the indemnity when a worker resigns from an open-ended contract: nothing under three years, half from three to five years, two thirds over five and under ten years, and the full amount from ten years. English translations of the law differ on exactly five years; this page follows the reading that five years is still half. Article 52 keeps the full indemnity in some cases, among them a woman who resigns within a year of marriage. A worker dismissed for the serious misconduct listed in the law can lose the indemnity.
Recent changes. We looked for an amendment to Articles 51 to 53, including reports of changes to the indemnity on resignation in 2024 and 2025, and found no law or decree making one as of September 2026. Pages claiming a 2025 update cite no instrument. Kuwaiti nationals in the private sector are insured with the Public Institution for Social Security, which has its own rules alongside the indemnity.
For Saudi Arabia use the Saudi end-of-service calculator; for the UAE the UAE gratuity calculator. Choose KWD in the currency menu for dinars. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How is indemnity calculated in Kuwait?
15 days’ remuneration for each of the first five years and a month’s remuneration for each year after, part years in proportion, capped at 18 months’ pay. 7 years 6 months at KWD 1,000 a month gives KWD 5,384.62 with a 26-day month.
How much indemnity do I get if I resign in Kuwait?
Nothing under three years, half from three to five years, two thirds for more than five and under ten, and the full indemnity from ten years (Article 53).
Did Kuwait change the indemnity rules in 2025?
We found no amendment to Articles 51 to 53 in force as of September 2026. The formula and the resignation shares are those of Law No. 6 of 2010.
Is the indemnity on basic salary only?
The law uses the remuneration: basic pay plus the allowances fixed in the contract. Bonuses and allowances that cover work expenses are left out. Some employers use basic only; check your contract.
Related calculators
References
- State of Kuwait. Law No. 6 of 2010 on Labour in the Private Sector, Articles 51 (indemnity), 52 (full indemnity cases), 53 (resignation) and 55 (remuneration). Public Authority for Manpower, English translation, https://www.manpower.gov.kw/docs/LaborLaw/Labor_Law_Eng.pdf
- Arab Times Legal Clinic. Calculation of indemnity under the Kuwait Labour Law (the 26-day working month), 2016.
- Paul Hastings LLP. Kuwait employment law updates (no amendment to the end-of-service indemnity reported).