Use this free Kuwait indemnity calculator to estimate your end of service indemnity under Kuwait Labour Law, including the reduced amounts if you resign.
Kuwait Labour Law · Article 51Kuwait End of Service Indemnity Calculator
Estimate for monthly-paid private-sector employees under Kuwait Labour Law No. 6 of 2010. Your contract may give more.
Our free Kuwait indemnity calculator estimates the end of service indemnity you will receive when you leave your job in Kuwait. Enter your last salary, your joining date, your last working day and how your job ended, and it applies the rules of Kuwait Labour Law, including the reduced amounts for resignation.
What Is End of Service Indemnity in Kuwait?
End of service indemnity is a lump-sum payment your employer must pay when your employment ends. It rewards you for your years of service and is paid on top of your final salary and your unused annual leave.
The rules come from Kuwait Labour Law No. 6 of 2010 for the private sector, mainly Articles 51 and 53. This calculator covers monthly-paid employees. Workers paid daily, weekly, hourly or by piece receive 10 days' pay per year for the first five years and 15 days per year after that, up to one year's pay.
How the Kuwait Indemnity Calculator Works
For monthly-paid employees, the law gives a fixed amount for each year of service. Partial years are counted pro-rata.
First 5 years
15 days' salary for each year of service.
After 5 years
One month's salary for each further year of service.
Maximum amount
The total cannot be more than 18 months' salary.
The formula
Indemnity = (Daily wage × 15 × first 5 years) + (Monthly salary × years after 5)
Kuwait Indemnity If You Resign
If you resign from an open-ended contract, Article 53 reduces your indemnity based on your length of service:
| Years of service | Share of indemnity |
|---|---|
| Less than 3 years | None |
| 3 to less than 5 years | Half (50%) |
| 5 to less than 10 years | Two-thirds (66.7%) |
| 10 years or more | Full (100%) |
- Full indemnity without reduction if your employer ends the contract, a fixed-term contract expires, or the contract is ended in line with the Labour Law.
- Marriage exception. A female employee who resigns within one year of her marriage receives the full indemnity.
Kuwait Indemnity Calculator Examples
Fatima
Salary KWD 600, 8 years of service. Her employer ended the contract.
- 5 yrs × 15 days KWD 1,730.769
- 3 yrs × 1 month KWD 1,800.000
- Share 100%
Ali
Salary KWD 600, 8 years of service. He resigned.
- Full indemnity KWD 3,530.769
- 5–10 years rule Two-thirds
- × 2/3 KWD 2,353.846
John
Salary KWD 600, resigned after 2 years. Under Article 53 he gets no indemnity. If his employer had ended the contract instead, he would have received KWD 692.308.
Kuwait Indemnity Quick Reference Table
Estimated full indemnity when the employer ends the contract, using salary ÷ 26:
| Monthly salary | 1 year | 3 years | 5 years | 10 years | 20 years |
|---|---|---|---|---|---|
| KWD 300 | 173 | 519 | 865 | 2,365 | 5,365 |
| KWD 500 | 288 | 865 | 1,442 | 3,942 | 8,942 |
| KWD 800 | 462 | 1,385 | 2,308 | 6,308 | 14,308 |
| KWD 1,200 | 692 | 2,077 | 3,462 | 9,462 | 21,462 |
| KWD 2,000 | 1,154 | 3,462 | 5,769 | 15,769 | 35,769 |
All amounts in KWD, rounded to the nearest dinar.
When You Can Lose Your Indemnity
Under Article 41(a), an employer can dismiss an employee without indemnity in only three cases:
- Serious loss. The employee made a mistake that caused the employer a large loss.
- Fraud. The employee got the job through fraud or deception.
- Disclosing secrets. The employee revealed work secrets that caused, or could have caused, real losses.
Other disciplinary grounds do not remove the indemnity. If a court finds a dismissal was arbitrary, the employee is owed the indemnity plus compensation.
How to Use the Kuwait Indemnity Calculator
- Enter your last monthly salary in KWD, including regular allowances.
- Select your joining date and last working day.
- Choose how your employment ended.
- Keep the daily wage method at ÷ 26 unless your employer uses ÷ 30.
- Press Calculate Indemnity to see your estimate and the full breakdown.
Plan What to Do With Your Indemnity
Once you know your indemnity amount, these tools can help you plan your next step. You can also browse all our financial calculators.
Kuwait Indemnity Calculator FAQs
How is indemnity calculated in Kuwait?
For monthly-paid employees, Kuwait Labour Law gives 15 days' salary for each of the first five years of service and one month's salary for each year after that, up to a maximum of 18 months' salary.
Do I get indemnity if I resign in Kuwait?
Yes, if you have at least 3 years of service on an open-ended contract. You get half the indemnity with 3 to 5 years, two-thirds with 5 to 10 years, and the full amount after 10 years. With less than 3 years you get nothing.
Is Kuwait indemnity based on basic or full salary?
It is based on your last salary, which includes basic pay plus regular allowances and benefits set by your contract. The social and children's allowances paid under Law No. 19 of 2000 are excluded.
What is the maximum indemnity in Kuwait?
For monthly-paid employees the indemnity cannot be more than 18 months' salary (one and a half years' pay).
Do I get indemnity if my contract ends or I am terminated?
Yes. If your employer ends the contract or a fixed-term contract expires, you receive the full indemnity for your whole period of service, including partial years.
Can I lose my indemnity in Kuwait?
Only in limited cases under Article 41(a): if your mistake caused the employer a serious loss, you got the job by fraud, or you disclosed work secrets. Other disciplinary dismissals do not remove the indemnity.
Disclaimer: This calculator and guide give an estimate for general information only and are not legal advice. Your final indemnity may differ based on your contract and circumstances. For an official answer, contact your employer or Kuwait's Public Authority for Manpower.