How Kuwait indemnity is calculated
Article 51 of the Kuwait private sector Labour Law (No. 6 of 2010) sets the end of service indemnity from your last wage:
- 15 days' wage for each of the first five years.
- One month's wage for each year after five years.
- Part years are paid in proportion.
- The total cannot be more than 18 months' wage (one and a half years).
A day's wage is the monthly wage ÷ 26, the method used by Kuwaiti courts for monthly-paid staff. The wage is your last wage, including allowances you receive every month.
If you resign (Article 53)
| Service when you resign | Share of the indemnity |
|---|---|
| Under 3 years | Nothing |
| 3 to under 5 years | Half |
| 5 to under 10 years | Two thirds |
| 10 years or more | Full |
Article 52 pays the full amount when the employer ends the contract, when a fixed-term contract expires, and when a woman resigns within one year of marriage. Dismissal for serious misconduct can lose it.
Worked examples (wage KWD 400)
| Service | Employer ended it | You resigned |
|---|---|---|
| 2 years | KWD 461.538 | KWD 0 |
| 3 years | KWD 692.308 | KWD 346.154 |
| 5 years | KWD 1,153.846 | KWD 769.231 |
| 7 years | KWD 1,953.846 | KWD 1,302.564 |
| 10 years | KWD 3,153.846 | KWD 3,153.846 |
| 20 years | KWD 7,153.846 | KWD 7,153.846 |
| 30 years | KWD 7,200 | KWD 7,200 |
Example for 7 years: KWD 400 ÷ 26 = KWD 15.385 a day. 5 × 15 days = 75 days = KWD 1,153.846, plus 2 × KWD 400 = KWD 800. Total KWD 1,953.846.
More for Kuwait
Add leave and notice with the Kuwait final settlement calculator, or compare countries in the GCC gratuity comparison.
Sources
- Kuwait Private Sector Labour Law No. 6 of 2010
- Public Authority for Manpower (PAM)