End-of-Service Benefit Calculator
Kuwait End-of-Service Gratuity Calculator
Free, accurate, and instant — based on Kuwait Private Sector Labour Law No. 6 of 2010, Articles 51–53
Kuwait End-of-Service Gratuity Calculator
Based on Kuwait Private Sector Labour Law No. 6 of 2010, Articles 51–53
Resignation Entitlement Tiers
| Years of Service | Entitlement |
|---|---|
| Less than 3 years | None |
| 3–5 years | 50% |
| 5–10 years | 67% |
| 10+ years | Full |
Applies only if you resign. Termination or contract expiry is always paid in full, regardless of years served.
Your result will include
Total gratuity in KWD
Instantly calculated, no sign-up
Year-by-year accrual table
See exactly how gratuity builds over time
Law citation & legal notes
Kuwait Private Sector Labour Law No. 6 of 2010, Articles 51–53
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How much indemnity do you get in Kuwait?
In Kuwait, end-of-service indemnity is 15 days’ wage for each of your first five years of service, then a full month’s wage for every year after that. The daily wage is your monthly wage ÷ 26. If you resign from an unlimited (open-ended) contract you may receive a reduced share — nothing under 3 years, half at 3–5 years, two-thirds at 5–10 years, and the full amount from 10 years. Termination, contract expiry, and resignation from a fixed-term contract are paid in full. The total is capped at 18 months’ wage. This is set by Private Sector Labour Law No. 6 of 2010, Article 51.
- Local term
- Indemnity (mukafaa)
- Years 1–5
- 15 days’ wage per year
- Year 6 onward
- 1 month’s wage per year
- Daily wage basis
- Monthly wage ÷ 26
- Maximum
- 18 months’ wage
- Minimum service
- None — accrues from day one
Last reviewed: July 2026
What is end-of-service indemnity in Kuwait?
End-of-service indemnity — locally called “indemnity” or mukafaa, and the same thing as gratuity or an end-of-service benefit elsewhere in the Gulf — is a lump sum your employer must pay when your employment ends in Kuwait. For Kuwait’s large expatriate workforce it is the main statutory leaving entitlement, while Kuwaiti nationals are additionally covered by the state social-insurance (PIFSS) pension system.
Indemnity is governed by Private Sector Labour Law No. 6 of 2010, Articles 51 to 53. Article 51 sets the rate — 15 days’ wage for each of the first five years, and one month’s wage for each year beyond five — caps the total at 18 months’ wage, and reduces the amount for employees who resign from an open-ended contract before completing ten years.
This calculator applies Article 51 exactly: it works out your daily wage on Kuwait’s 26-day month, applies the 15-day and one-month tiers to your service, prorates any partial year, applies any resignation reduction based on your contract type, and enforces the 18-month cap — so you get the figure your employer should pay.
How Kuwait indemnity is calculated
Kuwait uses a two-tier rate and a 26-day month. Follow these steps, or just use the calculator above.
- 1
Start from your monthly wage
Use your last monthly wage. Kuwait’s Article 55 defines wage broadly (basic plus contractual allowances), but many employers pay indemnity on basic salary only — check your contract, and enter the figure that matches how your employer calculates.
- 2
Work out your daily wage (÷ 26)
Daily wage = monthly wage ÷ 26. Kuwait’s statutory working month is 26 days — this is different from the UAE, Saudi Arabia, and Qatar, which divide by 30.
- 3
Apply 15 days for the first five years
For each of your first five years you earn 15 days of wage: 15 × daily wage × years (up to five).
- 4
Apply one month from year six
For every year beyond five you earn a full month (30 days): 30 × daily wage × the years above five. Partial years are prorated at the rate for that year.
- 5
Apply any resignation reduction, then the cap
If you resign from an unlimited contract, multiply by your tier fraction (½, ⅔, or full). Finally, cap the total at 18 months’ wage.
| Service period | Indemnity earned |
|---|---|
| Each of years 1–5 | 15 days’ wage per year |
| Each year from year 6 | 1 month’s (30 days’) wage per year |
| Daily wage basis | Monthly wage ÷ 26 |
| Overall cap | 18 months’ (1.5 years’) wage |
Rates shown are for monthly-paid employees. Resignation from an unlimited contract is reduced (nothing under 3 years, ½ at 3–5, ⅔ at 5–10, full at 10+); termination, contract expiry, and fixed-term resignation are paid in full — Article 51.
Kuwait indemnity calculation examples
Three worked examples using the Article 51 formula (daily wage = monthly wage ÷ 26). Your own figures will differ — run them in the calculator above.
3 years, contract ended by employer
- Monthly wage: KWD 600 → daily wage = 600 ÷ 26 = KWD 23.08
- 15 days × 3 years = 45 days
- 45 days × KWD 23.08 ≈ KWD 1,038
- Paid in full — termination is not reduced.
Indemnity≈ KWD 1,0387 years, termination (tier jump)
- Monthly wage: KWD 800 → daily wage = KWD 30.77
- Years 1–5: 15 × 5 = 75 days
- Years 6–7: 30 × 2 = 60 days → 135 days total
- 135 days × KWD 30.77 ≈ KWD 4,154
Indemnity≈ KWD 4,1544 years, resignation (unlimited contract)
- Monthly wage: KWD 700 → daily wage = KWD 26.92
- Full amount: 15 × 4 = 60 days → 60 × 26.92 ≈ KWD 1,615
- Resigning at 3–5 years pays half
- KWD 1,615 × ½ ≈ KWD 808
Indemnity≈ KWD 808
Who is eligible for indemnity in Kuwait?
Indemnity applies to private-sector employees under the Labour Law. Unusually for the Gulf, there is no one-year qualifying period — it accrues from your first day.
No minimum service period
Unlike the UAE, Saudi Arabia, and Qatar, Kuwait sets no one-year minimum. If your contract is ended by the employer, or your fixed-term contract expires, indemnity is due proportionally even for a few months of service.
Private-sector employees
Article 51 covers workers under Private Sector Labour Law No. 6 of 2010. Government and oil-sector employees, and domestic workers, fall under separate regimes.
Resignation has its own rules
Resigning from an unlimited contract before ten years reduces your indemnity on a sliding scale (see below). This is a resignation reduction, not a minimum-service bar — termination is not affected.
Kuwaiti nationals
Kuwaiti nationals are also covered by the Public Institution for Social Security (PIFSS) pension scheme, in addition to any indemnity.
Monthly-paid vs daily/piece workers
This calculator uses the monthly-paid rate (15 days, then one month). Workers paid by the day, hour, or piece accrue at a lower rate (10 days, then 15 days) with a one-year cap — check your pay basis.
Dismissal for gross misconduct
An employee lawfully dismissed under Article 41 for one of the listed serious reasons can lose entitlement to indemnity.
Resignation vs termination, and contract type
Termination and contract expiry: if your employer ends your contract, or your fixed-term contract reaches its natural end date, you receive your full indemnity — 15 days per year for the first five years and a month per year after that, from your very first day, with no reduction.
Resignation from an unlimited (open-ended) contract: this is where Kuwait reduces the amount, on a sliding scale set by Article 51. Resign before completing three years and no indemnity is due; complete 3–5 years and you receive half; 5–10 years pays two-thirds; and from ten years you receive the full amount, the same as if you had been terminated.
Resignation from a limited (fixed-term) contract: the Article 51 resignation reduction is written for unlimited contracts. A fixed-term contract that runs to its end date is paid in full, and this calculator treats a fixed-term resignation as paid in full. Note that ending a fixed-term contract early can carry other consequences (such as compensation to the employer), so check your contract terms.
The 18-month cap: however long you work, the total indemnity is capped at 18 months’ (one and a half years’) wage. In practice this only affects employees with very long service or high wages.
No minimum service — but watch the resignation rule: unlike its neighbours, Kuwait has no one-year qualifying period, so a terminated employee accrues from day one. The three-year threshold is specifically a resignation rule on unlimited contracts, not a general minimum.
Common Kuwait indemnity mistakes
Dividing the monthly wage by 30
Kuwait uses a 26-day working month. Dividing by 30 understates your daily wage and your indemnity — always use ÷ 26.
Assuming resignation always pays in full
On an unlimited contract, resigning before ten years reduces your indemnity (nothing under 3 years, half at 3–5, two-thirds at 5–10). Only termination and fixed-term expiry are always full.
Thinking there is a one-year minimum
There isn’t. If your employer ends the contract, indemnity accrues from your first day — the three-year rule only applies to resignation on an unlimited contract.
Forgetting the rate rises after five years
The first five years accrue 15 days each; every year after that accrues a full month (30 days). Missing the jump undercounts long service.
Being unsure whether allowances count
Article 55 defines wage broadly, but many employers pay indemnity on basic salary only. Confirm your employer’s basis before you rely on a figure.
Overlooking the 18-month cap
Very long or highly paid service is capped at 18 months’ wage — the calculator applies this automatically.
Tips for employees in Kuwait
- Check whether your contract is limited (fixed-term) or unlimited (open-ended) — it changes what you receive if you resign.
- Confirm the wage base your employer uses: basic only, or basic plus allowances (Article 55 allows the broader figure).
- Remember the daily wage is your monthly wage ÷ 26, not ÷ 30.
- Keep copies of your contract, joining date, and last working day so your service is counted correctly.
- If your final settlement looks wrong, you can file a complaint with the Public Authority of Manpower (PAM) or the labour courts.
Important legal notes
Governing law
Kuwait Private Sector Labour Law No. 6 of 2010, Article 51 (indemnity rate, resignation reduction, and 18-month cap) and Article 55 (definition of wage).
Wage base
Article 55 defines wage as the basic pay plus all elements stipulated in the contract or by-laws. In practice many employers calculate indemnity on basic salary only — confirm which basis applies to you.
Contract type matters
The resignation reduction in Article 51 is written for unlimited (open-ended) contracts. Termination and fixed-term expiry are paid in full.
Estimate, not legal advice
This tool gives an accurate estimate for guidance. Confirm your final figure with your employer, the Public Authority of Manpower, or a qualified lawyer before acting.
Frequently asked questions
How is indemnity calculated in Kuwait?
Indemnity is 15 days’ wage for each of the first five years of service, then a full month’s wage for every year after that. The daily wage is your monthly wage ÷ 26, and the total is capped at 18 months’ wage — Private Sector Labour Law No. 6 of 2010, Article 51.
Why is Kuwait indemnity divided by 26 and not 30?
Kuwait’s statutory working month is 26 days, so the daily wage used for indemnity is the monthly wage ÷ 26. This differs from the UAE, Saudi Arabia, and Qatar, which divide by 30.
Do I get indemnity if I resign in Kuwait?
It depends on your contract. On an unlimited (open-ended) contract, resigning pays nothing under 3 years, half at 3–5 years, two-thirds at 5–10 years, and the full amount from 10 years. Resignation from a fixed-term contract that reaches its end date, and any termination, are paid in full.
Is there a minimum service period for indemnity in Kuwait?
No. Unlike the UAE, Saudi Arabia, and Qatar, Kuwait has no one-year minimum — indemnity accrues proportionally from your first day if the employer ends the contract or a fixed-term contract expires. The three-year rule applies only to resignation on an unlimited contract.
Is Kuwait indemnity based on basic salary or total salary?
Article 55 defines wage broadly as basic pay plus contractual elements, which would include regular allowances. In practice many employers calculate indemnity on basic salary only, so confirm which basis your employer uses.
How many days of indemnity do I get per year in Kuwait?
15 days’ wage for each of the first five years, and a full month (30 days) for every year after that, for monthly-paid employees.
Is there a maximum indemnity in Kuwait?
Yes. The total indemnity is capped at 18 months’ (one and a half years’) wage — Article 51.
How much indemnity do I get after 10 years in Kuwait?
After ten years you receive your full indemnity even if you resign: 15 days per year for the first five years plus one month per year for years six to ten — 75 + 150 = 225 days of wage — subject to the 18-month cap.
When is indemnity paid in Kuwait?
Indemnity is due at the end of service, together with any other amounts owed to you on termination, such as untaken leave.