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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.

The rules in Kuwait

LawPrivate Sector Labour Law No. 6 of 2010, Articles 51 and 53
Wage usedLast pay including regular (periodic) allowances
Monthly-paid15 days' pay per year for the first 5 years; one month per year after; maximum 1.5 years' pay
Daily, hourly or piece-rate10 days' pay per year for the first 5 years; 15 days per year after; maximum 1 year's pay
Daily rateMonthly 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 amountEmployer 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?
For monthly-paid staff: 15 days' pay for each of the first five years and one month's pay for each later year, capped at one and a half years' pay.
What do I get if I resign in Kuwait?
Nothing under three years, half the indemnity between three and five years, two thirds between five and ten years, and the full amount after ten years.
Is the indemnity on basic or total salary?
On the last pay including regular allowances.
Is there a maximum indemnity in Kuwait?
Yes: one and a half years' pay for monthly-paid staff and one year's pay for daily-paid staff.
Do women who resign after marriage get the full amount?
Yes, if they resign within one year of marriage.

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