Kuwait Indemnity Calculator 2026

Kuwait Indemnity Guide 2026: End-of-Service Gratuity Explained

Your end-of-service indemnity — also called gratuity, end-of-service benefit (EOSB) or final settlement — is money your employer must pay you when your job in Kuwait ends. This guide explains, in plain language, how it is calculated, how resignation changes it, what else you are owed, and what to do if your employer does not pay.

⚖️ Legally reviewed by MOU Law Firm · Based on Kuwait Labour Law No. 6 of 2010 and Domestic Workers Law No. 68 of 2015 · Last reviewed October 2026 · Kuwait Upto Date

How to use the Kuwait indemnity calculator

1. Choose your sector and how the job ends (employer ends it, or you resign).
2. Enter your monthly salary — basic plus fixed allowances.
3. Pick your joining date and last working day.
4. Read your result, add other dues for your final settlement, or create an early settlement request letter.

What is end-of-service indemnity in Kuwait?

End-of-service indemnity (in Arabic: مكافأة نهاية الخدمة) is a one-time payment from your employer when your employment ends. It rewards your years of service and helps you through the move to a new job or back home. It is paid by the employer — it is not a government pension — and private-sector workers have the same right to it whether they are Kuwaiti or expatriate.

The legal basis

• Private sector: Kuwait Labour Law No. 6 of 2010. Article 51 sets the formula and the 18-month maximum, and Article 53 sets the reduced shares for workers who resign.
• Domestic workers: Law No. 68 of 2015 on Domestic Workers — one month’s salary for each year of service.
• Government employees: civil service rules, with Kuwaiti nationals covered by the PIFSS pension system (see below).

How Kuwait indemnity is calculated, step by step

Step 1 — Work out your daily wage

For the private sector, divide your monthly salary by 26 (the law counts 26 working days in a month).

Step 2 — Count the days you have earned

• First 5 years: 15 days’ pay for each year.
• After 5 years: 30 days’ pay for each additional year.
• Part years: counted in proportion — six extra months earn half a year’s days.

Step 3 — Multiply and apply the 18-month cap

The total can never be more than 18 months of your salary. You reach that ceiling after about 18 years of service.

Step 4 — Apply your share if you resign

If your employer ends the contract you receive the full amount. If you resign, you receive a share that depends on your years of service (see the table below).

Quick reference: indemnity by years of service

Calculated for a monthly salary of 500 KD, private sector. For your own salary, use the calculator above.

Resignation vs termination: how your share changes

Timing matters: if you are close to a milestone (3, 5 or 10 years), resigning a few weeks later can raise your indemnity a lot. The calculator shows when you reach your next milestone and how much more you would receive.

Domestic workers (Law 68/2015)

Housemaids, drivers, cooks and other domestic workers are covered by Law No. 68 of 2015, not the private-sector Labour Law. The rule is simpler: one month’s salary for every year of service, with part years counted in proportion. There is no 15/30-day tier, and the calculator applies the full amount whether the job ends by resignation or by the sponsor.

Government sector & Kuwaiti nationals

Government employees fall under civil service rules rather than Labour Law No. 6 of 2010. Kuwaiti nationals build up retirement benefits with the Public Institution for Social Security (PIFSS), while expatriate government employees receive end-of-service pay under the terms of their contract. This calculator is designed for the private sector and domestic workers; government staff should check their entitlement with their HR department.

What counts as salary for indemnity?

• Include: basic salary plus fixed allowances paid every month as part of your contract, such as housing and transport.
• Usually exclude: occasional payments such as overtime, one-off bonuses and reimbursements.
• Which month? Indemnity is based on your last salary, so a pay rise near the end of your service increases the indemnity for all your years.

Special situations: death, company closure, transfers and more

Death of an employee

The full indemnity is generally payable to the worker’s legal heirs, with no resignation reduction, together with the final month’s salary, unused leave and other dues. The family usually needs the death certificate, the employment contract and an official document naming the heirs (for expatriates, the embassy can help). Ask HR early whether the employer covers repatriation costs.

Permanent disability

If the worker can no longer work because of total disability, the full indemnity is generally payable. Work injuries may give the right to additional compensation, so keep all medical reports.

Company closure or bankruptcy

Your contract ends through no fault of your own, so your indemnity is calculated as if the employer ended the contract (100%). Workers’ dues are generally priority debts. Get your dues in writing before the company stops operating, keep your salary records, and complain to PAM quickly if you are not paid.

Company sold or merged

Contracts generally continue with the new owner and your service is counted without a break. If you are asked to sign a “new contract”, make sure it keeps your original joining date — or get your indemnity up to that date settled in writing first.

Transferring your residency to a new employer

Your old employer pays for your service with them, based on whether you resigned or were terminated; service with the new employer starts from zero. Get your final settlement in writing and paid before the transfer is completed.

Fixed-term contracts and renewals

A fixed-term contract that simply ends gives the full indemnity; if the employer ends it early without reason, you may also claim compensation. Repeated renewals with the same employer generally count as one continuous period, unless indemnity was paid at a renewal.

Dismissal

Ordinary dismissal (restructuring, redundancy, performance) still gives the full indemnity. Only serious misconduct under Article 41 removes it.

Notice period

Monthly-paid workers are entitled to 3 months’ notice (Article 44). Without notice, the employer owes salary for that period; if you leave without serving notice, it may be deducted from your settlement.

Unpaid leave and absence

Unpaid leave generally does not count as service. Under Article 42, unexplained absence for 7 days in a row, or 20 days in a year, lets the employer treat you as having resigned. Probation counts as service once you continue in the job.

Getting your indemnity early

Employers are not obliged to pay early, but many agree when asked in writing. Use the early settlement request letter to ask HR.

Your full final settlement

Indemnity is only one part of what you should receive when you leave. Your final settlement normally includes:

• End-of-service indemnity — calculated above.
• Unused annual leave — paid at your daily wage for the days you have not taken.
• Notice pay — if the contract is ended without the required notice (3 months for monthly-paid workers under Article 44).
• Unpaid salary — for days worked in your final month.
• Other contractual dues — such as an air ticket or bonus promised in your contract.
• Minus any loans or salary advances you owe the employer.

Add these in the final settlement section of the calculator to see your total.

What to do if your employer doesn’t pay your indemnity

1. Ask in writing. Email or write to HR requesting your final settlement, and keep a copy.
2. Collect your documents: employment contract, Civil ID, salary slips or bank statements, your resignation or termination letter, and any written messages about your dues.
3. File a complaint with the Public Authority for Manpower (PAM). PAM’s labour relations department will call both sides and try to settle the dispute.
4. Go to the labour court if PAM cannot settle it — the case is referred to the court, and labour cases are generally exempt from court fees. You can follow your case through the Ministry of Justice.