Kuwait End-of-Service Indemnity Calculator
Work out end-of-service indemnity under Kuwait Labor Law — 15 days’ pay per year for the first five years, a month per year after that, with the resignation rules applied. Free, no signup needed.
Calculate the indemnity
The last drawn monthly remuneration.
Fill in the salary and dates to see the indemnity.
How end-of-service indemnity works in Kuwait
Article 51 of Kuwait Labor Law (Law No. 6 of 2010) entitles monthly-paid private-sector workers to 15 days’ remuneration for each of the first five years of service, and one month’s remuneration for every year after that. Fractions of a year count pro-rata, and the daily rate is the monthly salary divided by 26 — the working-month convention applied by Kuwaiti courts.
The total is capped at one and a half years’ remuneration (18 months). The full amount is due when the employer ends the employment, the contract term expires, or service ends due to death or disability.
A worker on an unlimited contract who resigns receives a share that depends on service length — nothing before 3 years, half from 3 to 5 years, two-thirds from 5 to 10 years, and the full indemnity from 10 years. Dismissal for gross misconduct under Article 41 can forfeit the indemnity.
Worked example
An employee on 650 KWD a month is terminated after 7 years. Daily wage: 650 ÷ 26 = 25 KWD. First five years: 5 × 15 × 25 = 1,875 KWD. Years six and seven: 2 × 650 = 1,300 KWD. Indemnity: about 3,175 KWD. Had they resigned instead, the 5–10 year tier applies: two-thirds, about 2,117 KWD.
Resigning? Service length sets the share
- Under 3 yearsno indemnity
- 3 – 5 yearshalf the indemnity
- 5 – 10 yearstwo-thirds
- 10 years or morefull indemnity
Frequently asked questions
How is end-of-service indemnity calculated in Kuwait?
Monthly-paid workers earn 15 days’ pay per year for the first five years of service and one month’s pay for each year after, based on the last salary with a daily rate of the monthly wage ÷ 26. Fractions of a year count pro-rata, and the total is capped at 18 months’ pay.
Do I get indemnity if I resign?
On an unlimited contract: nothing before 3 years of service, half from 3 to 5 years, two-thirds from 5 to 10 years, and the full amount from 10 years.
Which salary is the indemnity based on?
The last remuneration. For monthly-paid workers the daily rate used is the monthly salary divided by 26 working days.
Is there a maximum indemnity?
Yes — Article 51 caps the total at one and a half years’ remuneration (18 months of salary).
When is indemnity lost entirely?
Resigning before completing 3 years of service pays nothing, and dismissal for gross misconduct under Article 41 can forfeit the indemnity.
This calculator is general guidance based on Kuwait Labor Law No. 6 of 2010 (Articles 51–53) for monthly-paid private-sector workers. It is not legal advice — for specific cases, consult the Public Authority of Manpower or a legal professional.
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