Domestic worker (housemaid, nanny, driver, cook)? A different law applies — Law No. 68 of 2015, with its own formula. Use the domestic worker end-of-service calculator.
How end-of-service indemnity is calculated in Kuwait
The rate depends on how you are paid. These figures come directly from Article 51 of Law No. 6 of 2010.
| Worker type | First 5 years | Each year after year 5 | Maximum |
|---|---|---|---|
| Monthly-paid | 15 days' wage per year (½ month) | 1 month's wage per year | 1.5 years' wage |
| Daily / weekly / hourly / piece-rate | 10 days' wage per year | 15 days' wage per year | 1 year's wage |
Which salary is used?
Under Article 55, the "wage" is your basic salary plus any allowances, commissions, grants or cash privileges you received on a regular basis. The government social allowance and children's allowance paid to Kuwaiti nationals under Law No. 19 of 2000 are not included.
How much of it you actually receive
Full indemnity — Article 52
When the employer terminates you, a fixed-term contract expires without renewal, the contract ends under Articles 48–50, or a female worker resigns due to marriage within one year.
Resignation — Article 53
On an open-ended contract: under 3 yrs → nothing, 3–5 yrs → ½, 5–10 yrs → ⅔, 10 yrs+ → full.
Forfeited — Article 41(a)
Dismissal for gross misconduct (fraud to get the job, leaking secrets, causing gross loss) means no indemnity is due.
Paid separately
Unused annual-leave pay, unpaid wages and notice-period pay are settled on their own and are not part of the indemnity figure above.
Worked example
A monthly employee on KWD 600 with 8 years of service, terminated by the employer:
- First 5 years: ½ month × 5 = 2.5 months
- Years 6–8: 1 month × 3 = 3 months
- Total = 5.5 months × KWD 600 = KWD 3,300.000 (well under the 18-month cap of KWD 10,800).
Frequently asked questions
Common questions about Kuwait private-sector end-of-service indemnity.
How is end-of-service indemnity calculated in Kuwait?
For monthly-paid workers, Article 51 grants 15 days' wage (half a month) for each of the first five years of service and one month's wage for every year after that, capped at 1.5 years' total wage. Day, week, piece or hour-paid workers get 10 days' wage per year for the first five years and 15 days per year thereafter, capped at one year's wage.
What is the maximum end-of-service indemnity?
The total is capped at 1.5 years' wage for monthly-paid workers and at one year's wage for day, week, piece or hour-paid workers.
Do I get indemnity if I resign?
On an open-ended contract, Article 53 gives a resigning worker nothing under 3 years of service, one-half from 3 to under 5 years, two-thirds from 5 to under 10 years, and the full indemnity at 10 years or more.
Is indemnity based on basic salary or total salary?
Article 55 defines the wage as the basic salary plus allowances, commissions, grants and cash privileges received periodically. The government social allowance and children's allowance for Kuwaiti nationals (Law 19 of 2000) are excluded.
Can I lose my indemnity if I am dismissed?
Only dismissal for gross misconduct under Article 41(a) — fraud to obtain the job, disclosing company secrets, or causing a gross loss — forfeits the indemnity. Lesser-misconduct dismissals under Article 41(b) still keep it.
Legal basis
This calculator implements Kuwait Labour Law No. 6 of 2010 concerning labour in the private sector: Article 51 (indemnity formula), Article 52 (full-entitlement cases), Article 53 (resignation scale), Article 41 (forfeiture on gross misconduct) and Article 55 (definition of wage).
Disclaimer: This is an independent educational tool and is not affiliated with, or endorsed by, the Public Authority for Manpower or any government body in Kuwait. Results are estimates and do not constitute legal advice. For an official calculation, consult the Public Authority for Manpower or a qualified lawyer.