Do I lose my entire end-of-service gratuity if I resign?

No, unless your service is under 3 years on an indefinite-term contract. After 3 years, you start earning a rising percentage of the gratuity. Source: Labor Law No. 6/2010, Article 53.

How much am I owed if I resign after 6 years of service?

You are entitled to two-thirds (66.7%) of the gratuity calculated under Article 51, because your service falls in the 5-to-under-10-year tier. Source: Labor Law No. 6/2010, Article 53.

Do these tiers also apply to fixed-term contracts?

The Article 53 reduction is specifically tied to resignation from an indefinite-term contract. Ending a fixed-term contract has different rules related to the remaining contract period — seek legal advice for specific cases.

Is service counted from the first day of work?

Yes, it is counted from the actual start date until the end of the contractual relationship, and includes the probation period unless the contract states otherwise.

End-of-Service Gratuity on Resignation: What Are You Actually Owed?

The legal basis — Article 53

Many workers hesitate to resign, assuming they’ll forfeit their entire end-of-service gratuity. That is not accurate for most cases. When an employee resigns from an indefinite-term contract, Article 53 of Labor Law No. 6 of 2010 reduces the gratuity otherwise calculated under Article 51, based on years of service at the resignation date.

The four tiers

The legislative idea is that a worker who leaves voluntarily after a relatively short period has not yet built the "job stability" that would entitle them to the full gratuity, while someone with 10+ years is treated, on resignation, the same as someone whose service ended for another reason.

Under 3 years of service: nothing.
3 to under 5 years: 50% of the calculated gratuity.
5 to under 10 years: two-thirds (66.7%) of the calculated gratuity.
10 or more years: 100% — the full gratuity. Source: Labor Law No. 6/2010, Article 53.

Worked examples (basic salary KD 500 in all cases)

Resign after 2.5 years: under the 3-year threshold — no gratuity at all.

Resign after 4 years: base gratuity (Art. 51) = 60 days × (500 ÷ 26) ≈ KD 1,154; tier = 50% — actual payout ≈ KD 577.

Resign after 7 years: base gratuity ≈ KD 2,442 (75 days for the first 5 years plus 2 full months); tier = 66.7% — actual payout ≈ KD 1,629.

Resign after 12 years: base gratuity ≈ KD 4,942 (75 days plus 7 full months); tier = 100% — actual payout ≈ KD 4,942, no reduction.

Things to watch

The reduction applies only to voluntary resignation from an indefinite-term contract — arbitrary dismissal or fixed-term contract expiry are treated differently.
The overall 18-month cap from Article 51 still applies even after the resignation percentage is calculated.
Timing matters — the tier is set by actual service length on your last working day, so delaying a resignation by a few months can move you into a higher tier.

Calculate your own number

Use the free end-of-service calculator to apply these rules to your own salary and dates.

Open the calculator

Common questions

Do I lose my entire end-of-service gratuity if I resign?: No, unless your service is under 3 years on an indefinite-term contract. After 3 years, you start earning a rising percentage of the gratuity. Source: Labor Law No. 6/2010, Article 53.
How much am I owed if I resign after 6 years of service?: You are entitled to two-thirds (66.7%) of the gratuity calculated under Article 51, because your service falls in the 5-to-under-10-year tier. Source: Labor Law No. 6/2010, Article 53.
Do these tiers also apply to fixed-term contracts?: The Article 53 reduction is specifically tied to resignation from an indefinite-term contract. Ending a fixed-term contract has different rules related to the remaining contract period — seek legal advice for specific cases.
Is service counted from the first day of work?: Yes, it is counted from the actual start date until the end of the contractual relationship, and includes the probation period unless the contract states otherwise.

Sources

Kuwait Labor Law No. 6 of 2010, Article 53 — resignation gratuity reduction tiers
Kuwait Labor Law No. 6 of 2010, Article 51 — base gratuity formula

This guide provides general information, not legal advice. For advice specific to your situation, consult the Public Authority for Manpower (PAM), the Ministry of Interior, or a licensed lawyer.