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Calculate your estimated Kuwait end-of-service indemnity online. Enter your monthly wage, employment dates, sector and reason for leaving to get an instant estimate and a detailed calculation breakdown.
Get an estimated end-of-service benefit in Kuwaiti Dinar (KWD)
Kuwait end-of-service indemnity, also called gratuity or terminal service indemnity, is a payment that may be due to an employee when the employment relationship ends. For monthly-paid private-sector workers, the main calculation is governed by Kuwait Labour Law No. 6 of 2010.
The amount depends on several factors, including the employee's last applicable wage, total period of service, employment sector and the way the employment relationship ended.
For monthly-paid private-sector employees, Article 51 provides 15 days' remuneration for every year during the first five years and one month's remuneration for every year after the first five years, subject to the statutory maximum. :contentReference[oaicite:2]{index=2}
For a monthly-paid private-sector employee, the calculation has two stages.
The employee receives the equivalent of 15 days' wage for every year of service during the first five years.
For every year after the first five years, the entitlement is equivalent to one month's wage.
A fraction of a year is calculated proportionally. Therefore, months and days of service can affect the final estimate rather than simply rounding the service period down to the nearest full year.
| Service Period | Indemnity Rate | Example Based on KWD 1,000 Wage |
|---|---|---|
| First year | 15 days' wage | KWD 500 |
| First 5 years | 15 days' wage per year | KWD 2,500 maximum for 5 years |
| 6th year onward | 1 month's wage per year | KWD 1,000 per additional year |
| Maximum | 18 months' wage | KWD 18,000 maximum on KWD 1,000 wage |
Article 51 states that monthly-paid employees receive 15 days' remuneration for each of the first five years and one month's remuneration for each subsequent year, with the total indemnity not exceeding one and a half years' wage. :contentReference[oaicite:3]{index=3}
Resignation can affect the amount payable in an unlimited/indefinite contract. Therefore, simply calculating the accrued indemnity is not always enough.
| Service Period | Unlimited Contract Resignation |
|---|---|
| Less than 3 years | No indemnity under the Article 53 resignation scale |
| 3 years to less than 5 years | 50% of accrued indemnity |
| 5 years to less than 10 years | Two-thirds of accrued indemnity |
| 10 years or more | 100% of accrued indemnity |
Article 52 provides for full indemnity in specified situations such as employer termination and expiry of a fixed-term contract without renewal. Article 53 addresses reductions where a worker terminates an unlimited contract voluntarily. :contentReference[oaicite:4]{index=4}
Monthly wage: KWD 1,000
First five years:
KWD 1,000 × 0.5 × 5 = KWD 2,500
Estimated accrued indemnity: KWD 2,500
Monthly wage: KWD 1,000
First five years: KWD 2,500
Additional two years: KWD 2,000
Total accrued indemnity: KWD 4,500
Monthly wage: KWD 1,000
First five years: KWD 2,500
Next five years: KWD 5,000
Total: KWD 7,500
Kuwait does not use exactly the same indemnity formula for every employment sector. The oil sector has a separate statutory regime, so users should select the correct sector before relying on the calculator result.
| Rule | Private Sector | Oil Sector |
|---|---|---|
| Applicable Law | Labour Law No. 6 of 2010 | Law No. 28 of 1969 |
| First 5 Years | 15 days' wage per year | 30 days' wage per year |
| After 5 Years | 1 month's wage per year | 45 days' wage per year |
| Private/Oil Cap | 18 months' wage | Different statutory regime; no equivalent private-sector 18-month cap |
| Resignation | Specific reductions may apply to unlimited contracts | Different rules apply |
Because oil-sector employment is governed by a different law, employees should not automatically use the private-sector formula for an oil-sector employment relationship. :contentReference[oaicite:5]{index=5}
For the most accurate estimate, enter your applicable total monthly wage, rather than automatically entering only your basic salary.
Regularly paid allowances and other wage components may form part of the relevant wage depending on their nature and the circumstances of the employment relationship. Current legal summaries also distinguish the wage basis from a basic-salary-only calculation. :contentReference[oaicite:6]{index=6}
Basic salary: KWD 600
Regular housing allowance: KWD 150
Regular other allowance: KWD 100
Potential wage basis: KWD 850
The exact wage components that legally count should be confirmed for your particular employment circumstances.
Kuwait's indemnity calculation gives credit for a fraction of a year. Using actual employment dates allows the calculator to estimate years, months and remaining days of service rather than forcing the user to enter only whole years.
For example, an employee who has worked for 6 years and 6 months should not automatically be treated as having only six complete years. The fractional period can contribute proportionally to the indemnity.
| Feature | Included |
|---|---|
| Monthly salary calculation | Yes |
| Employment start date | Yes |
| Employment end date | Yes |
| Automatic service calculation | Yes |
| Private sector | Yes |
| Oil sector estimate | Yes |
| Unlimited contract resignation adjustment | Yes |
| Fixed-term contract | Yes |
| 18-month private-sector cap | Yes |
| Instant calculation | Yes |
| Page refresh required | No |