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Kuwait end-of-service indemnity calculator
Estimate what you are owed when your job in Kuwait ends, based on Labour Law No. 6 of 2010. Enter your salary and dates below for an itemized breakdown.
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The 26-day daily wage
A 26-day working month. Kuwaiti payroll practice divides your monthly salary by 26 (not 30 or the calendar days in the month) to get a daily wage. That daily wage is used both for the indemnity formula and for any unused-leave payout.
Article 51: the base formula
For workers on a fixed monthly salary: 15 days’ wage for each of the first 5 years of service, then a full month’s salary for each year beyond that. Fractional years are pro-rated — for example, half a year in a tier counts as half that tier’s rate. For workers paid daily, weekly, hourly, or by the piece: 10 days’ wage for each of the first 5 years, then 15 days’ wage for each year beyond that. Fractions of a year are pro-rated the same way.
The cap
However long your service, the base indemnity cannot exceed 18 months’ salary for monthly-paid workers, or 12 months’ salary for non-monthly-paid workers. Very long tenures hit this ceiling.
If you resign
Resigning voluntarily reduces your share of the base indemnity, on a sliding scale by years of service: nothing under 3 years, half between 3 and 5 years, two-thirds between 5 and 10 years, and the full amount from 10 years onward. Being terminated by your employer, having a fixed-term contract expire, or leaving due to death or permanent disability all pay 100% regardless of tenure.
Dismissal for cause
A lawful Article 41 dismissal for a serious offence — fraud in obtaining the job, disclosing trade secrets, assault, and similar grave conduct — forfeits the indemnity entirely. An unfair dismissal dressed up as an Article 41 case is a different, disputed situation that this calculator does not attempt to resolve.
Related guides
Common questions
- How is end of service calculated in Kuwait?
- Under Labour Law No. 6 of 2010, monthly-paid workers earn 15 days’ wage per year for the first 5 years of service and a full month’s salary per year after that, capped at 18 months’ salary in total. Workers paid daily, weekly, hourly, or by the piece earn 10 days’ wage per year for the first 5 years and 15 days’ wage per year after that, capped at 12 months’ salary. The result is then adjusted by how the job ended — full entitlement for termination by the employer, contract expiry, or death/disability, a sliding scale for resignation, and zero for a lawful dismissal for cause.
- Is the working month 26 or 30 days for this calculation?
- Kuwaiti payroll practice and PAM-aligned calculators use a 26-day working month to convert a monthly salary into a daily wage, and that daily rate is what feeds the indemnity and leave-payout formulas. It is not the 30 (or 28/29/31) calendar days in the month.
- What do I get if I resign?
- Resigning voluntarily reduces your indemnity on a tier based on your years of service: 0% under 3 years, 50% from 3 to under 5 years, two-thirds (66.67%) from 5 to under 10 years, and 100% from 10 years onward. Unused annual leave is still paid out in full regardless of this tier.
- What is the cap on end-of-service indemnity?
- The base indemnity cannot exceed 18 months’ salary for workers paid a fixed monthly salary, or 12 months’ salary for workers paid daily, weekly, hourly, or by the piece. Even with very long service, the calculation stops adding at that ceiling.
- Does dismissal for cause remove my indemnity?
- Yes. A lawful dismissal for cause under Article 41 — for a serious offence such as fraud, disclosing trade secrets, or assault — forfeits the end-of-service indemnity entirely. This is different from an ordinary termination by the employer, which still pays the full indemnity.
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