Kuwait's private-sector Labour Law gives workers an end-of-service indemnity that grows faster after five years, and it cuts the amount sharply for people who resign early from an open-ended contract. This calculator applies Articles 51 and 53 of Law No. 6 of 2010 for monthly-paid workers, including the 18-month cap.
Figures checked by Muhammad Ahmad against Kuwait Private Sector Labour Law No. 6 of 2010 (Public Authority for Manpower). Prices and rules change, so confirm with the official source before relying on them. How we check the math
How it works
Daily remuneration = monthly remuneration ÷ 26. For each of the first five years you earn 15 days of it.
For each year after the fifth you earn one month's remuneration. Part-years count in proportion. The total can't exceed 18 months' remuneration.
If you resign from an open-ended contract, Article 53 pays a share of that full amount: nothing under 3 years, half from 3 to 5 years, two thirds from 5 to 10 years, and all of it from 10 years. If the employer ends the contract, or a fixed-term contract runs its course, the full amount is due. Dismissal for gross misconduct under Article 41 can forfeit it.
Remuneration here means your full pay, basic plus regular allowances, not basic alone. Daily- and hourly-paid workers have lower rates (10 and 15 days) and a 12-month cap, which this calculator doesn't cover.
A worked example
On KWD 600 a month with 7 years of service, daily remuneration is KWD 23.077. The first five years earn 15 days each, KWD 1,730.769, and the two later years a month each, KWD 1,200: KWD 2,930.769 in full. If the employer ends the contract, that is what's due. Resigning at 7 years pays two thirds, KWD 1,953.846.
Questions people ask
How is end-of-service indemnity calculated in Kuwait?
For monthly-paid workers, 15 days' remuneration (monthly ÷ 26 × 15) for each of the first five years and one month's remuneration for each year after, capped at 18 months' pay.
Do I get indemnity if I resign in Kuwait?
From an open-ended contract: nothing under 3 years, half from 3 to 5, two thirds from 5 to 10 and the full amount from 10 years.
Is Kuwait indemnity based on basic salary?
It's based on remuneration, which includes regular fixed allowances as well as basic salary, unlike Qatar and the UAE, which use basic only.
What is the maximum indemnity in Kuwait?
18 months' remuneration for monthly-paid workers. It's reached after about 20 years of service.
Why do some calculators give a higher figure?
Some value each year after the fifth as 30 × monthly ÷ 26, which is about 15% more than the one month's remuneration the law sets. This calculator uses one month.