GulfDues / Kuwait indemnity calculator
Kuwait end of service indemnity calculator
Your indemnity under the Kuwait Private Sector Labour Law: 15 days of wage a year for the first 5 years, a month a year after - and what you keep if you resign.
Your estimate
How it is worked out
Day's wage = monthly wage ÷ 26. First 5 years: 15 days × day's wage × years. After 5 years: one month's wage for each year. The total is at most 18 months of wage. On resignation the share of Article 53 is applied.
Example: wage KWD 400, 7 years, the employer ends it: 400 ÷ 26 = 15.385 a day; 15 × 15.385 × 5 = KWD 1,153.85; plus 2 × 400 = KWD 800; total KWD 1,953.85. If you resigned: two thirds = KWD 1,302.56.
Sources (checked October 2026): Kuwait Labour Law Articles 51-53 (summary) · Teamed: Kuwait end-of-service indemnity · Lockton: Law 85 of 2017. Laws change - the ministry or a court gives the final figure.
Questions
How is end-of-service indemnity calculated in Kuwait?
Under Article 51 of the Private Sector Labour Law (Law 6/2010), a monthly-paid worker gets 15 days of wage for each of the first 5 years and one month of wage for each year after that. The total cannot be more than 18 months of wage. Part years count pro rata.
Which salary is used - basic or total?
The last total wage: basic plus the regular allowances you are paid every month (housing, transport). One-off bonuses and expense refunds are not included.
What if I resign?
From an open (unlimited) contract: nothing under 3 years, half between 3 and 5 years, two thirds between 5 and 10 years, and all of it from 10 years (Article 53). If the employer ends the contract you get all of it.
Why divide by 26?
Kuwaiti courts work out a day's wage as the monthly wage ÷ 26 working days. Some employers use 30 days - choose it on the form to compare.
Can my employer deduct social security from it?
No. Since Law 85 of 2017 the employer may not take its PIFSS contributions out of the indemnity.