Kuwait End of Service Indemnity Calculator (2026)
Kuwait end of service indemnity for monthly-paid staff = 15 days' pay for each of the first 5 years and one month's pay for each year after, capped at one and a half years' pay (Private Sector Labour Law No. 6 of 2010, Article 51). On resignation, Article 53 pays nothing under 3 years, half from 3 to 5 years, two thirds from 5 to 10 years, and the full amount after 10 years.
· Calculated with AiStaffo
The rules in Kuwait
| Law | Private Sector Labour Law No. 6 of 2010, Articles 51 and 53 |
|---|---|
| Wage used | Last pay including regular (periodic) allowances |
| Monthly-paid | 15 days' pay per year for the first 5 years; one month per year after; maximum 1.5 years' pay |
| Daily, hourly or piece-rate | 10 days' pay per year for the first 5 years; 15 days per year after; maximum 1 year's pay |
| Daily rate | Monthly pay ÷ 26 (common practice; some employers use ÷ 30) |
| Resignation (Art. 53) | Under 3 years: nothing. 3 to 5 years: half. 5 to 10 years: two thirds. 10 years or more: full |
| Full amount | Employer ends the contract, a fixed-term contract expires, or a woman resigns within one year of marriage |
Worked example
Monthly pay KWD 600 including allowances, 7 years and 6 months, contract ended by the employer. Daily rate 600 ÷ 26 = KWD 23.08.
First 5 years: 15 × 23.08 × 5 = KWD 1,730.77. Remaining 2.5 years: 600 × 2.5 = KWD 1,500. Total KWD 3,230.77. If the employee resigned, two thirds apply: KWD 2,153.85.
÷ 26 or ÷ 30?
The law speaks of "15 days' pay" without fixing the daily rate. Kuwaiti practice usually treats it as 15 working days (÷ 26); some employers use ÷ 30, which gives about 8% less on the first five years. The calculator uses ÷ 26 and lets you switch.
PIFSS and deductions
Employers may not deduct their social security (PIFSS) contributions from the indemnity. Loans and other amounts the employee owes can still be deducted.
For employers: gratuity is one line of what a role costs
Gratuity, leave, statutory contributions and notice periods all sit on top of salary. Routine back-office roles such as data entry, follow-ups, reconciliations and reporting can be handed to AI workers that carry none of these costs. Book a free automation audit and we will put your own figures on it.
Please note: this calculator follows the published law and common practice as checked on 21 October 2026. It is a guide, not legal advice. Contracts can give more than the legal minimum, and special cases (part-time work, free zones, disputes) can change the figure, so confirm the final amount with your HR team or a lawyer before paying or accepting a settlement.
Questions people ask
How is end of service indemnity calculated in Kuwait?
What do I get if I resign in Kuwait?
Is the indemnity on basic or total salary?
Is there a maximum indemnity in Kuwait?
Do women who resign after marriage get the full amount?
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