Kuwait Indemnity (End of Service) Calculator Widget

Calculate the end-of-service indemnity a monthly-paid private-sector worker in Kuwait is owed under Article 51 of Law No. 6 of 2010 - fifteen days' wage for each of the first five years, a month for each later year, capped at eighteen months - with the resignation cuts of Article 53 and no deduction for social-insurance contributions.

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How it works

Article 51 of the Private Sector Labour Law, read here from the official text published by the Ministry of Justice, gives monthly-paid workers fifteen days' wage for each of the first five years of service and one month's wage for every year after that, with part years in proportion and a ceiling of one and a half years' wage. The wage is the last wage including contractual allowances (Articles 55 and 62). Since Law 85 of 2017, made retroactive by Law 17 of 2018, the employer may no longer subtract what it paid to the Public Institution for Social Security, so the worker receives the full amount. The indemnity is paid in full when the employer ends the contract, a fixed term expires, under Articles 48 to 50, or when a woman resigns within a year of marrying. A worker who resigns from an open-ended contract receives half from three years, two thirds from five and all of it from ten; below three years, nothing. Dismissal for the misconduct listed in Article 41(a) forfeits it. The Law never says how many days make a month for Article 51: the only method it states, in the weekly-rest article, divides salary by actual working days excluding rest days, so the widget shows working days as an editable assumption - 26 for a six-day week.

Calculation method

  • Years 1-5: 15 days x (monthly wage / working days) per year
  • Later years: 1 x monthly wage per year; part years pro rata
  • Cap: 18 x monthly wage; no deduction for PIFSS contributions
  • Resignation (open-ended): x 0 below 3 years, x 1/2 from 3, x 2/3 from 5, x 1 from 10

Worked examples

Eight years, contract ended by the employer

Inputs: Wage KWD 600; six-day week (26)

Result: KWD 3,530.769

75 x 600/26 + 3 x 600.

Resigned after seven years

Inputs: Same wage

Result: KWD 1,953.846

Two thirds of 2,930.769.

Twenty-four years

Inputs: Same wage

Result: KWD 10,800.000

Capped at 18 months.

A calculation aid, not legal advice. The labour courts decide disputed indemnities.

Limitations

  • Monthly-paid workers only; daily, weekly, hourly and piece-rate workers have a different formula (10 / 15 days, cap one year).
  • Government employees and domestic workers are under other laws.
  • No amendment after 2018 was found, but 2024-2026 could not be confirmed from an official index.

Where publishers use it

  • A Kuwait City recruitment firm comparing offers for expatriate engineers
  • An HR department settling a departing employee's indemnity
  • An Indian or Filipino community site answering 'how much indemnity after eight years in Kuwait?'
  • An Arabic legal blog explaining Article 53's resignation fractions

Questions

How is indemnity calculated in Kuwait?

For monthly-paid workers, 15 days' wage for each of the first five years and one month's wage for each later year, pro rata, up to 18 months' wage (Law 6/2010 Article 51). Eight years on KWD 600 with a six-day week is 75 days at 600/26 plus 3 months = KWD 3,530.769.

How much indemnity do I get if I resign in Kuwait?

From an open-ended contract: half from 3 to under 5 years of service, two thirds from 5 to under 10, the full amount from 10 years, and nothing below 3 years (Article 53).

Can the employer deduct social-insurance contributions from the indemnity?

No. Laws 85/2017 and 17/2018 amended Article 51 so the worker receives the full indemnity with no deduction for the employer's PIFSS share, retroactive to the start of Law 6/2010.

Is the indemnity on basic or total salary?

On the last wage, which Article 55 defines as the basic wage plus contractual allowances, recurring bonuses and cash benefits - excluding the national labour support and children's allowances paid by the state.

Why does the calculator ask for working days?

Article 51 counts days' wage but does not say how many days make a month. The Law's only stated method, in Article 67, divides salary by actual working days excluding weekly rest days: 26 for a six-day week, about 22 for a five-day week.

Rules and official sources

Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for Kuwait; when a rule changes, the widget changes with it.

RuleOfficial sourceIn force fromLast verifiedNext review
End-of-service indemnity (monthly-paid)
Monthly-paid workers: 15 days' wage for each of the first five years and one month's wage for each later year, part years pro rata, capped at one and a half years' wage, on the LAST wage (basic plus contractual allowances, Arts. 55, 62). Since Laws 85/2017 and 17/2018 (retroactive to the start of Law 6/2010) the employer may not deduct its social-insurance contributions. Workers' debts and loans are deducted. Daily, weekly, hourly and piece-rate workers have a different formula (10 / 15 days, cap one year) that this rule does not cover. The Law gives no figure for "a day's wage" in Art. 51; the only method it states is salary / actual working days excluding weekly rest days (Art. 67 para. 2, written for the rest-day article) - applying it here is an interpretation, so the widget shows the working days as an editable input (26 for a six-day week). No amendment of Arts. 41-53 or 64-73 after 2018 was found up to Feb 2024; 2024-2026 not confirmed. 		Private Sector Labour Law, Law No. 6 of 2010 (official text, Ministry of Justice)
Ministry of Justice, Kuwait - Arts. 51(b), 55, 62; Art. 51 last paragraph as amended by Laws 85/2017 and 17/2018		 Not stated on the source 7 Oct 2026 4 Feb 2027
Indemnity on resignation
Resignation from an open-ended contract: half the indemnity from 3 to under 5 years, two thirds from 5 to under 10, the full indemnity from 10 years; nothing below 3 years (the article grants nothing below three years). Full indemnity whatever the service when the employer ends the contract, a fixed term expires, under Arts. 48-50, or when a woman resigns within a year of marriage (Art. 52). Dismissal under Art. 41(a) forfeits it; Art. 41(b) dismissal keeps it. 7 consecutive or 20 separate days of unexcused absence can be treated as resignation (Art. 42). 		Private Sector Labour Law, Law No. 6 of 2010 (official text, Ministry of Justice)
Ministry of Justice, Kuwait - Arts. 52, 53, 41, 42		 Not stated on the source 7 Oct 2026 4 Feb 2027

Sources

  1. Private Sector Labour Law, Law No. 6 of 2010 (official text, Ministry of Justice) - Ministry of Justice, Kuwait . Arts. 51(b), 55, 62; Art. 51 last paragraph as amended by Laws 85/2017 and 17/2018. Verified 2026-10-07.

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A2Z Tools Kuwait Indemnity (End of Service) Calculator
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