Kuwait Indemnity Calculator 2026
Calculate your end of service indemnity under Kuwait Private Sector Labour Law. Enter your basic salary and total years of service to get your exact entitlement.
Kuwait Indemnity — How It's Calculated
Kuwait Private Sector Labour Law (Law No. 6 of 2010) sets out end of service indemnity for all private sector employees. The formula depends on total years served and whether you resigned or were terminated:
| Scenario | Years of Service | Rate |
|---|---|---|
| Terminated by employer | First 5 years | 15 days salary per year |
| Beyond 5 years | 1 month salary per year | |
| Resigned | Less than 3 years | No entitlement |
| Resigned | 3–less than 5 years | 1/3 of full indemnity |
| Resigned | 5–less than 10 years | 2/3 of full indemnity |
| Resigned | 10 years or more | Full indemnity |
Like UAE and Saudi Arabia, Kuwait indemnity is calculated on basic salary only. Housing allowance and other benefits are excluded from the calculation base.
Kuwait Indemnity Calculation Examples
| Basic Salary (KWD) | Years | Reason | Indemnity |
|---|---|---|---|
| KWD 400 | 4 years | Terminated | KWD 800 (15d × 4yr) |
| KWD 400 | 4 years | Resigned | KWD 267 (1/3 of 800) |
| KWD 400 | 7 years | Terminated | KWD 1,900 (15d×5 + 1mo×2) |
| KWD 600 | 10 years | Resigned | KWD 3,500 (full) |
What Happens at End of Service in Kuwait
When your employment ends in Kuwait, your employer must settle all dues on your last day or within a reasonable period. This includes indemnity, any outstanding leave balance, and remaining salary.
Kuwait also has a unique Public Institution for Social Security (PIFSS) system — some employers contribute to PIFSS on behalf of expatriate employees, which can affect indemnity calculations. If your employer participated in PIFSS, check whether this affects your individual entitlement.
For disputes, the Kuwait Ministry of Social Affairs and Labour handles employment complaints. Most expat communities in Kuwait have informal networks where you can get guidance on the process.
Put Your Indemnity to Work
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