Interactive Tool
Kuwait End-of-service indemnity
Estimate based on Kuwait Labour Law No. 6 of 2010, Article 51. Actual amounts depend on contract terms, leave taken, unpaid wages, and other adjustments. Consult your employer's HR or a licensed labour lawyer for your specific situation.
Use this free calculator to estimate your Kuwait end-of-service indemnity. Enter your monthly remuneration (basic salary plus regular allowances) and length of service for an instant estimate based on Kuwait Labour Law No. 6 of 2010, Article 51.
How Kuwait end-of-service indemnity is calculated
Kuwait labour law provides an end-of-service indemnity to private-sector employees, calculated on remuneration (basic plus regular allowances).
Rules under Kuwait Labour Law No. 6 of 2010, Article 51
- Minimum 1 year of continuous service to qualify on termination
- Minimum 3 years to qualify on resignation (for monthly-paid workers)
- First 5 years: 15 days remuneration per year (monthly-paid)
- Years 5 and above: one-month remuneration per year
- Capped at 1.5 years of total remuneration
- Base is remuneration including regular allowances, not basic salary alone
- Resignation 3-5 years: 1/2 of indemnity
- Resignation 5-10 years: 2/3 of indemnity
- Resignation 10+ years: full indemnity
- Termination by employer or end of fixed-term contract: full indemnity
What counts as remuneration (basic salary plus regular allowances) in Kuwait?
Kuwait law uses "remuneration" - basic salary plus regular allowances paid for the worker's work. Overtime and one-off payments are excluded.
If your employment contract bundles a single salary figure with no separate basic/allowance breakdown, ask HR to confirm in writing how the remuneration (basic salary plus regular allowances) will be calculated for end-of-service purposes before you sign.
Worked example
A monthly-paid employee with remuneration of KWD 1,200 terminated by the employer after 7 years:
| Daily rate | KWD 1,200 / 30 = KWD 40/day |
| First 5 years | 5 × 15 × KWD 40 = KWD 3,000 |
| Remaining 2 years | 2 × KWD 1,200 = KWD 2,400 |
| Total indemnity | KWD 5,400 |
Below the 1.5-year cap (KWD 21,600), so no capping applies.
Frequently asked questions
Official source
For the full legal text, see: Kuwait Labour Law No. 6 of 2010, Article 51.
This page is general information, not legal advice. For your specific contract, consult a licensed labour lawyer or the relevant ministry.