How to calculate end-of-service indemnity in Kuwait
Last reviewed: 14 June 2026Checked against the official rules.How we verify
Kuwait's end-of-service indemnity is set by Labour Law No. 6 of 2010, Articles 51 and 53. The rate steps up after five years, there is a cap, and resigning from an indefinite contract reduces the amount. Here is how it works for a monthly-paid worker.
In short
Kuwait indemnity is 15 days' wage for each of your first five years and one month's wage for each year after, on your last wage, using a 26-day month. Resigning from an open-ended contract reduces it, and the total is capped at one and a half years' wage.
Key facts
- Rate
- 15 days/year for years 1-5, then 1 month/year
- Daily wage
- Monthly wage / 26
- Eligibility
- 1 year of continuous service
- Maximum
- 1.5 years' wage
- On resignation
- Reduced on open-ended contracts (Art. 53)
01Step 1 — Find your daily wage
The common convention uses a 26-day working month: divide your last monthly wage by 26 to get your daily wage. For KWD 1,000, that is 1,000 ÷ 26 = KWD 38.46 per day.
02Step 2 — Apply the two rates
A monthly-paid worker earns 15 days' wage for each of the first five years, and one full month's wage for each year beyond five, pro-rated for partial years.
03Step 3 — Check the cap and resignation rules
Total indemnity is capped at one and a half years' wage. If you resign from an indefinite contract (Article 53), you receive nothing under 3 years, half for 3 to 5 years, two thirds for 5 to 10 years, and the full amount at 10 years or more. Employer termination pays in full.
04Worked example — 8 years at KWD 1,000, termination
First five years: 15 × 5 = 75 days. Next three years: 30 × 3 = 90 days. Total 165 days × KWD 38.46 ≈ KWD 6,346. The cap (18 months = KWD 18,000) does not apply.
| Years of service | Indemnity |
|---|---|
| 1 year | KWD 577 |
| 3 years | KWD 1,731 |
| 5 years | KWD 2,885 |
| 8 years | KWD 6,346 |
| 10 years | KWD 8,654 |
Enter your salary and dates for your exact figure.
Frequently asked questions
Why divide by 26 and not 30?
The 26-working-day month is the standard private-sector convention in Kuwait. It is convention rather than a fixed statutory divisor, so some employers use 30; check your contract.
Does resignation reduce my indemnity?
On an indefinite contract, yes, per Article 53: nothing under 3 years, half for 3 to 5, two thirds for 5 to 10, and full at 10+. Employer termination and fixed-term completion pay in full.
Is there a maximum?
Yes, the total indemnity for a monthly-paid worker cannot exceed one and a half years' wage.
Guides for other countries
Based on Kuwait Labour Law No. 6 of 2010, Articles 51 and 53