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Unpaid leave and unexcused absence don't count as service.

How end-of-service is calculated in Kuwait

  • Monthly-paid workers get 15 days' wage for each of the first five years, then one month's wage for each year after (Article 51).
  • Uses your full wage: basic plus regular allowances, but not social or children's allowances.
  • A day's pay is the monthly wage divided by 26 working days, as used in Kuwaiti practice.
  • The indemnity can't be more than one and a half years' wage.
  • If you resign (Article 53): nothing under 3 years, half for 3–5 years, two thirds for 5–10 years, and the full amount after 10 years.
  • You get the full amount if your employer ends the contract, a fixed-term contract expires, or as a woman resigning within one year of marriage.
  • Dismissal under Article 41(a) removes it.

If you resign

ServiceWhat you get
Less than 3 yearsNo indemnity
3 to 5 yearsHalf
More than 5, less than 10 yearsTwo thirds
10 years or moreFull indemnity

Worked example

Wage KWD 1,000, 8 years, employer ended the contract15 days' wage per year (first 5 years): 5 years → KWD 2,884.615
1 month's wage per year (after 5 years): 3 years → KWD 3,000.000
Gratuity: KWD 5,884.615

Good to know

Daily, hourly and piece-rate workers use lower rates (10 days, then 15 days per year, capped at one year's wage). This calculator is for monthly-paid staff.

Questions people ask

How is indemnity calculated in Kuwait?

15 days' wage per year for the first five years and one month's wage per year after that, on your full wage, capped at 18 months.

Do I get indemnity if I resign in Kuwait?

Only after 3 years: half for 3–5 years, two thirds for 5–10 years, full after 10 years.

Why divide by 26?

Kuwaiti practice counts a month as 26 working days when turning the monthly wage into a daily wage.

Is the indemnity based on basic salary?

No. Kuwait uses your full wage, including regular allowances.

Compare the GCC

CountryRateSalary usedMinimum serviceIf you resignCap
Saudi Arabia½ month/yr (5 yrs), then 1 monthBasic + allowancesNoneReduced: none <2 yrs, ⅓, ⅔, full at 10None
UAE21 days/yr (5 yrs), then 30 daysBasic only1 yearNo cut24 months
Qatar3 weeks/yr (minimum)Basic only1 yearNo cutNone
Kuwait15 days/yr (5 yrs), then 1 monthBasic + allowancesNoneReduced: none <3 yrs, ½, ⅔, full at 1018 months
Bahrain½ month/yr (3 yrs), then 1 monthBasic onlyNoneNo cutNone
Oman1 month/yr (since Jul 2023)Basic onlyNoneNo cutNone

Official sources