End of Service Indemnity Calculator for Kuwait
Work out your Kuwait end of service indemnity under Labour Law No. 6 of 2010. The tool applies 15 days of wage for each of the first five years, a full month for each year after that, the resignation tiers for indefinite contracts and the one and a half year cap.
Kuwaiti End of Service Calculator
Kuwait Labour Law No. 6 of 2010, Articles 51 to 53
The basics
What is end of service indemnity in Kuwait?
In Kuwait the end of service payment is called the indemnity, and it is your right under Labour Law No. 6 of 2010, overseen by the Public Authority of Manpower. It is a lump sum your employer pays when your service ends, built from your wage and your length of service.
The rules reward longer service, but two features make Kuwait different from most of the Gulf. The daily wage uses a 26 day month rather than 30, and resignation from an open ended contract reduces the indemnity on a sliding scale. Understanding both before you decide to leave can change what you walk away with.
- 15 days of wage per year for the first five years
- One full month of wage per year after five years
- Daily wage is your monthly wage divided by 26
- Total capped at one and a half years of wage
- Labour Law No. 6 of 2010, Articles 51 to 53
- A 26 day working month sets the daily wage
- Resignation is reduced on open ended contracts
The formula
How the Kuwait indemnity is calculated
Two rates apply, using a working month of 26 days.
Your first five years
You earn 15 days of wage for each completed year in this band.
15 days of wage per yearEvery year after five
From year six onward the rate rises to one full month of wage for each year.
1 month of wage per yearYour daily wage is your monthly wage divided by 26. The total indemnity cannot exceed one and a half years of wage, which is 18 months of pay.
If you resign
How much of your indemnity you keep when you resign
On an open ended contract, resignation pays a rising share of the indemnity as your service grows.
Employer termination pays the full indemnity regardless of these tiers. Fixed term contracts follow different rules on early exit, so pick your contract type in the calculator.
Reason for leaving
How the reason for leaving changes your indemnity
Employer termination
If your employer ends the contract, you receive the full indemnity, subject only to the one and a half year cap.
Resignation on an open ended contract
Resigning pays a share of the indemnity based on your years of service, from nothing under three years up to the full amount at ten years.
Dismissal under Article 41
A lawful dismissal for gross misconduct under Article 41 removes the indemnity, where the employer proves the cause.
Know your rights
Your indemnity is a legal right in Kuwait
Under Labour Law No. 6 of 2010, your employer must pay your indemnity and final dues when your service ends. It is not optional, and a settlement that ignores the rates and caps in Articles 51 to 53 falls short of the law. Knowing the correct figure first protects your position.
If the indemnity is withheld or looks wrong, you can raise the matter with the Public Authority of Manpower, which handles private sector labour complaints and refers unresolved disputes to the courts. Keep your employment contract, your payslips and any resignation or termination letter, since these documents decide how much you are owed and which resignation tier applies.
Every figure here is tied to its article and shown as a full breakdown, so you can compare the result with your settlement and raise any difference with confidence.
Simple to use
Work out your Kuwaiti end of service in four steps
Enter your wage, including allowances
Use your last wage, including allowances, the figure that the Kuwait Labour Law bases the calculation on.
Add your dates
Enter your first and last working day. The tool measures your service to the exact day.
Choose the reason
Select how the job ended, since this can raise or remove part of the amount.
Read the breakdown
See your total plus a line by line breakdown and the exact rule that produced it.
Why trust this tool
Built for accuracy, not guesswork
End of service in Kuwait is a your money topic, so every figure here is tied to the law and shown in full.
Reviewed by a specialist
Formulas and legal references are checked by a GCC labour and HR specialist.
Tied to official law
The Kuwait Labour Law is the source, with links to the Public Authority of Manpower so you can verify it.
Full breakdown
You see how the figure is built, not just a single number, so you can check it.
Kept up to date
We revisit the rules when the law changes, so the calculation stays current.
Private by design
Your salary and dates stay in your browser. Nothing you enter is sent or stored.
Free and instant
No sign up and no fees. Get your result the moment you enter your details.
Worked example
A real example for Kuwait
How the numbers come together for a typical seven year service, ended by the employer.
An employee on a KWD 600.000 monthly wage who worked from January 2018 to December 2024, about seven years, receives the following under Kuwait Labour Law No. 6 of 2010, Articles 51 to 53.
| Part of the calculation | Amount |
|---|---|
| First 5 years at 15 days wage per year | KWD 1,730.770 |
| Years beyond 5 at one month wage per year | KWD 1,200.410 |
| Estimated total | KWD 2,931.180 |
Enter your own wage and dates in the calculator above for a figure based on your service.
Frequently asked questions
How is end of service indemnity calculated in Kuwait?
You earn 15 days of wage for each of the first five years, then one full month of wage for every year after five. The daily wage uses a 26 day month. The total is capped at one and a half years of wage.
How does resignation affect my Kuwait indemnity?
On an indefinite contract, resignation under three years pays nothing, three to five years pays one half, five to ten years pays two thirds, and ten years or more pays the full amount.
What is the maximum end of service indemnity in Kuwait?
The total indemnity cannot exceed one and a half years, which is 18 months of wage.
Why is the daily wage divided by 26 in Kuwait?
Kuwait treats a working month as 26 days for indemnity, so the daily wage is your monthly wage divided by 26 rather than 30.
Does the calculation change for fixed term contracts?
The base rates are the same, but the resignation reduction tiers apply to indefinite contracts. Fixed term contract rules can differ, so check your contract.
All six Gulf states
End of service calculators for every GCC country
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