Interactive Tool

Kuwait End-of-service indemnity

Kuwait labour law uses "remuneration" - basic salary plus regular allowances paid for work. Excludes overtime and one-off payments.

Reason for leaving

Kuwait reduces the indemnity on resignation: 1/2 for 3-5 years, 2/3 for 5-10 years, full after 10. Below 3 years on resignation: nothing.

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.

Worked examples: Kuwait end-of-service indemnity

Precomputed grid using the Kuwait Labour Law No. 6 of 2010, Article 51 formula. Read the row for your monthly remuneration and the column for your years of service. Use the interactive calculator above for cases in between.

Kuwait End-of-service indemnity worked examples: gratuity by monthly monthly remuneration and years of service, calculated under Kuwait Labour Law No. 6 of 2010, Article 51.
Monthly remuneration (KWD)1 year2 years3 years5 years10 years15 years
TerminationResignationTerminationResignationTerminationResignationTerminationResignationTerminationResignationTerminationResignation
KWD 500KWD 250.000-KWD 500.000-KWD 750.000KWD 375.000KWD 1,250.000KWD 833.333KWD 3,750.000KWD 3,750.000KWD 6,250.000KWD 6,250.000
KWD 1,000KWD 500.000-KWD 1,000.000-KWD 1,500.000KWD 750.000KWD 2,500.000KWD 1,666.667KWD 7,500.000KWD 7,500.000KWD 12,500.000KWD 12,500.000
KWD 2,000KWD 1,000.000-KWD 2,000.000-KWD 3,000.000KWD 1,500.000KWD 5,000.000KWD 3,333.333KWD 15,000.000KWD 15,000.000KWD 25,000.000KWD 25,000.000
KWD 4,000KWD 2,000.000-KWD 4,000.000-KWD 6,000.000KWD 3,000.000KWD 10,000.000KWD 6,666.667KWD 30,000.000KWD 30,000.000KWD 50,000.000KWD 50,000.000

Rounded to the 3rd decimal. General information only; check the current text of the Kuwait Labour Law No. 6 of 2010, Article 51 and consult a labour-law adviser for your actual case.

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 rateKWD 1,200 / 30 = KWD 40/day
First 5 years5 × 15 × KWD 40 = KWD 3,000
Remaining 2 years2 × KWD 1,200 = KWD 2,400
Total indemnityKWD 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.

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