Kuwait Indemnity Calculator

How Kuwait indemnity is calculated

Under Kuwait Labour Law No. 6 of 2010 (Articles 51–53), end-of-service indemnity uses the same two-tier structure as several Gulf neighbours: 15 days of basic salary per year for the first 5 years, and 30 days per year (a full month) after that. The total is capped at 18 months' basic salary.

Years of service	Rate
1–5 years	15 days' basic salary per year
6+ years	30 days' basic salary per year beyond year 5
Cap	18 months' basic salary

Why the daily rate divides by 26, not 30

This is the detail that trips up people moving from the UAE or Saudi, where the daily rate is basic salary ÷ 30. Kuwait treats a working month as 26 days, so your daily wage for indemnity purposes is basic salary ÷ 26 — a small difference that adds up over a full career.

Resignation and this calculator's honest limit

Kuwait's law does reduce indemnity for employees who resign before reaching certain tenure milestones. In researching this calculator, we found real disagreement across otherwise-reliable sources about exactly where those milestones sit and what fraction applies at each stage. Rather than encode a rule we're not confident is current, this calculator shows the full termination-basis amount — treat that as the ceiling if you're resigning early, and get your exact figure confirmed by Kuwait's Public Authority for Manpower (PAM) or your HR team.

What we can say with confidence: termination by the employer (without cause) generally entitles you to the full amount regardless of tenure, once probation is complete.

FAQ

Are allowances included in the calculation?

Generally no — regular monthly allowances (accommodation, transport, food, mobile) and variable bonuses are excluded. Use your basic salary line only.

How soon should indemnity be paid?

Employers typically have around 7 days after the contract ends to pay all final dues, including indemnity.