How is end of service indemnity calculated in Kuwait?
| Service | Full indemnity |
|---|---|
| Each of the first 5 years | 15 days’ wage (wage ÷ 26 × 15) |
| Each year after the fifth | One month’s wage |
| Maximum | One and a half years’ wage (18 months) |
It is based on your last full wage (not just basic), the daily wage is the monthly wage ÷ 26 working days, and part years count pro rata. Example: a wage of KWD 1,000 for 7 years = (5 × 15 ÷ 26 × 1,000) + (2 × 1,000) = KWD 4,884.62.
What do I get if I resign?
| Service | Share of the indemnity |
|---|---|
| Less than 3 years | Nothing |
| 3 to under 5 years | Half |
| 5 to under 10 years | Two thirds |
| 10 years or more | Full |
You receive the full indemnity if the employer ends the contract, a fixed-term contract expires without renewal, or a female employee resigns within a year of her marriage.
Frequently Asked Questions
Is it based on basic or total salary?
On your last full wage. Kuwaiti law defines the wage as everything the worker regularly receives for their work, so basic plus fixed allowances, unlike the UAE and Qatar, which use the basic wage only.
Why divide by 26, not 30?
Kuwaiti courts count a month as 26 working days for monthly-paid workers (the law itself sets no number), so 15 days’ wage = monthly wage × 15 ÷ 26. Calculators that divide by 30 give a lower figure.
I resigned after two and a half years. Do I get anything?
No. On resignation the law requires at least 3 years of service for any share of the indemnity.
I’m paid daily or by the piece.
This calculator is for monthly pay. Daily and piece-rate workers have lower rates in the law (10 days per year for the first 5 years and 15 days after, capped at one year’s wage), so check with the Public Authority for Manpower.
I work in another Gulf country.
We also have calculators for Saudi Arabia, the UAE and Qatar; each country has its own law.