Kuwait Indemnity Calculator

Calculates end-of-service indemnity for private-sector expatriates under Article 51 of Kuwait Labour Law No. 6 of 2010, including the half / two-thirds reductions when you resign before ten years and the 18-month cap. Kuwaiti nationals are covered by PIFSS.

Last updated 19 October 2026

Total monthly remuneration including regular allowances.
Deducted from your service period. Leave at 0 if none.
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How Kuwait gratuity is calculated

Article 51 entitles a monthly-paid worker to 15 days' remuneration for each of the first five years and one month's remuneration for each subsequent year, provided the total does not exceed one and a half years' remuneration (18 months). Fractions of a year are paid pro-rata.

Following established Kuwaiti practice and court rulings, the daily rate for the 15-day tier is the monthly remuneration ÷ 26 (working days), while the later tier is simply one month's pay per year.

Article 53: if the worker resigns from an open-ended contract, the entitlement is:

Service on resignationEntitlement
Less than 3 yearsNothing
3 to under 5 yearsHalf
5 to under 10 yearsTwo-thirds
10 years or moreFull

Termination by the employer, expiry of a fixed-term contract, retirement, death, or resignation of a female worker due to marriage (within a year) all attract the full indemnity.

Formula

years 1–5: service years × 15 days (÷26) of salary
years after 5: service years × 1 month of salary
Cap: 18 months' salary
× resignation factor if resigned (see table above)

Worked example

Remuneration KWD 1,000, 7 years, terminated: years 1–5 = 5 × 15 × (1,000 ÷ 26) = 2,884.6; years 6–7 = 2 × 1,000 = 2,000. Total KWD 4,884.6. If resigned (5–10 yrs) × ⅔ = KWD 3,256.4.

Legal basis: Law No. 6 of 2010 (Private Sector Labour Law), Article 51.

Frequently asked questions

How is Kuwait indemnity calculated?

15 days' pay per year for the first five years (daily rate = monthly ÷ 26), then one month per year, capped at 18 months' pay, pro-rata for part years.

Why divide by 26 and not 30?

Kuwaiti labour courts calculate the daily wage on 26 working days a month, which gives a slightly higher daily rate than ÷30. Most employer calculations and the PAM guidance follow this.

What do I get if I resign after 4 years in Kuwait?

Half of the accrued indemnity. Example: KWD 800 salary, 4 years → 4 × 15 × 30.77 = 1,846 × ½ = KWD 923.

Is Kuwait indemnity based on basic or total salary?

On total remuneration — basic plus regular allowances such as housing and transport. Variable overtime and one-off bonuses are excluded.

What is the maximum indemnity?

18 months' remuneration. For KWD 1,500/month the maximum is KWD 27,000.

Do I get indemnity if I resign before 3 years?

No, unless the contract is fixed-term and expires, or the resignation is for a protected reason (e.g. marriage within one year for female workers).

Is annual leave balance added to the indemnity?

Unused annual leave is paid separately in the final settlement at the same daily rate; it is not part of the indemnity figure.

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This calculator is provided for general information only and does not constitute financial, tax, legal or employment advice. Rules change and individual contracts, free-zone regulations and court rulings can differ. Always verify with your employer, the relevant ministry or a licensed professional.