Private sector workers in Kuwait are owed an end of service indemnity under Articles 51 to 53 of Labour Law No. 6 of 2010.
The formula
- 15 days' wage for each of the first five years.
- One month's wage for each year after five years.
- Part years paid in proportion.
- Capped at 18 months' wage.
A day's wage is the monthly wage divided by 26, the method Kuwaiti courts use for monthly-paid staff. So 15 days is about 0.58 of a month.
Example
Wage KWD 500 and 8 years of service. A day is KWD 19.231. First five years: 75 days = KWD 1,442.308. Next three years: 3 × KWD 500 = KWD 1,500. Total KWD 2,942.308.
If you resign
Article 53 reduces the indemnity: nothing under 3 years, half from 3 to under 5 years, two thirds from 5 to under 10 years, and the full amount after 10 years. In the example, resigning after 8 years gives two thirds: KWD 1,961.538.
The full amount is paid when the employer ends the contract, when a fixed-term contract ends, and when a woman resigns within one year of marriage (Article 52).
Which wage counts
Your last wage, including allowances paid regularly each month.
Leave and notice
Annual leave is 30 working days a year, and unused leave is paid in cash when you leave. Notice is at least three months for monthly-paid staff. The Kuwait final settlement calculator adds these to the indemnity.
For the indemnity on its own, use the Kuwait indemnity calculator.
Sources
- Kuwait Private Sector Labour Law No. 6 of 2010
- Public Authority for Manpower (PAM)
Want the exact figure for your case?
Open the Kuwait indemnity calculator