Kuwait Final Settlement Calculator

Add up every component of your end-of-service payout, each on the wage base its own article requires, per Kuwait Private Sector Labour Law No. 6 of 2010, Articles 51, 53 & 55

Last reviewed: 4 July 2026

Final settlement calculator

Based on Kuwait Private Sector Labour Law No. 6 of 2010, Articles 51, 53 & 55

Enter your details and press Calculate to see your result.

Quick answer

Your final settlement in Kuwait is your terminal service indemnity, plus the balance of unused annual leave, plus pay for any notice period you were not allowed to serve, plus salary still owed, less debts and loans. Article 55 puts every one of those on the same wage — basic pay plus the allowances and commissions you receive periodically. Two things surprise people: Article 53's resignation reduction applies to open-ended contracts only, so resigning from a fixed-term contract costs you nothing, and Law No. 6 of 2010 sets no deadline at all for paying a settlement.

Indemnity: 15 days/yr for 5 yrs, 1 month/yr after (Art. 51b)
Wage base: Basic + periodic allowances (Art. 55)
Indemnity daily wage: Monthly wage ÷ 26 (Art. 67)
Cap: 18 months' wage (Art. 51b)
Resignation cut: Open-ended contracts only (Art. 53)
Payment deadline: None in the statute

What goes into a Kuwaiti final settlement

Article 51 sets the indemnity and then, in its closing paragraph, does something the other Gulf statutes do not: it names what may be taken back out. “The amount of any debts or loans which may be due from the labourer shall be deducted from the terminal service indemnity.” The deduction attaches to the indemnity line specifically, not to the settlement at large.

Each line below is calculated by the same engine that powers the standalone Kuwait pages, so the indemnity figure here matches the Kuwait indemnity calculator exactly and the leave figure matches the leave salary page.

Component	Wage base	Daily divisor	Article
Terminal service indemnity	Basic + periodic allowances	÷ 26	Art. 51 & 55
Unused annual leave	Basic + periodic allowances	÷ 26	Art. 67 & 70
Pay in lieu of notice	Basic + periodic allowances	÷ 30	Art. 44(b)
Outstanding salary	Basic + periodic allowances	÷ 26	Art. 67
Debts and loans	Deducted from the indemnity	—	Art. 51

Kuwait Private Sector Labour Law No. 6 of 2010. Article 51(b) is the schedule for monthly-paid workers, which this calculator models; Article 51(a) sets a different, lower schedule for workers paid by day, week, piece or hour.

The contract-type trap in Article 53

Article 53 is the provision that decides whether a resignation costs you money, and almost every Kuwait calculator applies it to everyone. Read the words: the worker takes half the indemnity “if he terminates the unlimited period contract from his own part” with three to under five years of service, two-thirds at five to under ten, and the full amount at ten or more.

The reduction is written for one kind of contract. A worker on a fixed-term contract who resigns is not inside Article 53's schedule at all, so the full Article 51 indemnity stands. This is not a technicality — on a KWD 1,000 monthly wage after six years it is the difference between KWD 2,692.31 and KWD 4,038.46, and no page on the first results page for “kuwait indemnity calculator” asks which contract you are on.

Article 52 widens the gap further. It lists four situations where the indemnity is due in full regardless: the employer terminates, a fixed-term contract simply expires without renewal, the contract ends under Articles 48, 49 or 50, or a woman resigns because of her marriage within a year of it. Article 48 is the one worth knowing — it lets a worker leave without notice and keep the whole indemnity where the employer broke the contract or the law, assaulted them, or obtained the contract by fraud.

Same worker, 6 years, KWD 800 + 200	Indemnity	Why
Employer terminated	KWD 4,038.46	Art. 52(a) — full
Resigned, fixed-term contract	KWD 4,038.46	Outside Art. 53
Resigned, open-ended contract	KWD 2,692.31	Art. 53 — two-thirds at 6 yrs

105 days of indemnity at a daily wage of KWD 1,000 ÷ 26 = 38.46. The calculator above asks for contract type only when you select resignation, because that is the only time the answer changes anything.

One wage, and where the divisor changes

Article 55 defines the wage broadly: the basic salary plus every element stipulated in the contract or the employer's rules, and it expressly folds in “the allowances, remunerations, commissions, grants, donations or cash privileges received by the labourer periodically”. That definition governs the indemnity, notice pay and your outstanding salary alike, so Kuwait avoids the multi-base arithmetic that makes an Omani settlement so easy to get wrong.

The divisor is where care is needed. Article 67 says a labourer's dues “including his daily wage and leaves” are worked out “by dividing his salary into the number of the actual working days without calculating therein his weekly off days, although the off days are paid days”. Because the article names leaves, the indemnity, your leave balance and any outstanding salary all divide by 26 — one rest day in six leaves roughly 26 working days a month. Article 70 points the same way: Kuwait's 30 leave days exclude official holidays and sick days that fall inside the leave, so they are working days.

Notice pay is the exception, and deliberately so. Article 44(b) does not count days at all — the party in breach owes “a notice period amount equal to the labourer's salary for the same period”. A three-month notice is three months' salary, which is what dividing by 30 and multiplying by 90 days produces. Applying the ÷ 26 figure to a period the statute measures in months would overpay by about 15%.

Be aware that the wage base is contested in practice even though the statute is not. Many Kuwaiti employers pay indemnity on basic salary alone. Article 55 supports the broader figure, but check your contract and enter the wage your employer actually uses, so the number you get is the number you can argue about.

There is no seven-day deadline in Kuwait

Search for how long your employer has to pay you and you will be told, repeatedly, that Kuwait requires payment within seven days of your last working day. The statute does not say that anywhere.

The seven days come from Article 56, and Article 56 is about the ordinary wage cycle: monthly workers are paid at least once a month, others at least fortnightly, and “the payment of salaries shall not be delayed after the seventh day of the due date”. It fixes how late a regular pay run may be. It says nothing about the payout when employment ends.

This makes Kuwait the outlier of the four Gulf states with a settlement calculator here. Oman's Article 91 requires payment immediately on termination, Qatar's Article 67 by the end of the following day, and Bahrain's Article 40(b)(4) immediately unless you resigned. Kuwait fixes no date, so an unpaid settlement is pursued as a labour complaint to the Public Authority for Manpower rather than as a missed statutory deadline.

What this calculator does not include

Unpaid overtime is owed at settlement and is not included here, because it depends on how many hours you worked and what kind of day each fell on. Kuwait pays 125% on ordinary overtime, 150% on the weekly rest day and 200% on an official holiday, so an unpaid holiday shift is worth far more than a flat daily rate suggests.

Also outside these four components: any end-of-service benefit your contract grants above the statutory minimum, repatriation costs, and the Social Security offset in Article 51's final paragraph, under which an employer subscribing you to the social security scheme pays only the net difference between those contributions and the indemnity due.

Kuwait overtime calculator

How to calculate your final settlement in Kuwait

1
Enter your dates and wage
Joining date, last working day, monthly basic salary and the allowances you receive periodically.
2
Say how the job ended
If you resigned, the calculator asks whether your contract was open-ended, because Article 53 only reduces that case.
3
Add leave, notice and unpaid days
Annual-leave days already taken, notice days you were not allowed to serve, and any days worked but unpaid.
4
Subtract debts and loans
Enter advances or loans to be recovered, then read the itemised breakdown.

Worked example

6 years, KWD 800 basic + KWD 200 allowances, terminated by the employer

Wage under Article 55: 800 + 200 = KWD 1,000. Daily wage under Article 67: 1,000 ÷ 26 = KWD 38.46
Indemnity: 15 days × 5 years = 75 days, plus 30 days for year 6 = 105 days × 38.46 = KWD 4,038.46
Leave accrued 180 days, 150 taken, so 30 unused: 30 × 38.46 = KWD 1,153.85 (Art. 67 names leaves, so ÷ 26 applies)
Notice not served, three months (Art. 44): the salary for the same period = 3 × 1,000 = KWD 3,000
Outstanding salary, 10 days: 38.46 × 10 = KWD 384.62
Gross settlement KWD 8,576.93, less a KWD 500 advance under Article 51

Net settlementKWD 8,076.93

Frequently asked questions

What is included in a final settlement in Kuwait?

Your terminal service indemnity under Article 51, the cash value of unused annual leave under Article 70, pay in lieu of any notice period you were not allowed to serve under Article 44(b), and salary still owed for days worked. Debts and loans are then deducted — Article 51 attaches that deduction to the indemnity specifically.

Does resigning reduce my indemnity in Kuwait?

Only on an open-ended contract. Article 53 reduces the indemnity to half between three and five years of service, two-thirds between five and ten, and nothing below three, but it is written for a worker who ends “the unlimited period contract” himself. Resign from a fixed-term contract and Article 51 applies in full. Article 52 also preserves the full amount where you leave under Article 48 for the employer's breach.

How long does my employer have to pay my settlement in Kuwait?

Law No. 6 of 2010 sets no deadline. The seven-day figure quoted across the web comes from Article 56, which governs the ordinary wage cycle rather than the end-of-service payout. If your settlement is not paid, the route is a labour complaint to the Public Authority for Manpower, not a statutory date you can point to.

Is Kuwait indemnity calculated on basic salary or total salary?

Article 55 defines the wage as basic pay plus all contractual elements and expressly includes allowances, commissions and cash privileges received periodically, which supports the fuller figure. In practice many employers calculate on basic salary only, so confirm which basis yours uses and enter that number — the statute and the payslip do not always agree here.

Why is the indemnity divided by 26 and not 30?

Article 67 says a labourer's dues, including the daily wage and leaves, are found by dividing the salary by the number of actual working days, excluding weekly off days even though those days are paid. With one rest day in six that leaves about 26 working days a month. Because the article names leaves, the same ÷ 26 applies to your leave balance and to outstanding salary. Notice pay is the exception: Article 44(b) measures it as the salary for the notice period rather than as a number of days.

Is there a maximum indemnity in Kuwait?

Yes. Article 51(b) caps the total at one and a half years' wage for monthly-paid workers, which is 18 months. On a KWD 1,000 wage that is KWD 18,000, reached at about 23 years of service. Workers paid by day, week, piece or hour fall under Article 51(a), which uses a lower schedule and a one-year cap.

What happens to my indemnity if my fixed-term contract just expires?

You receive it in full. Article 52(b) lists the expiry of a limited contract without renewal among the cases where the indemnity is due in full, so letting a fixed-term contract run out is treated the same as being terminated, not as resigning.

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