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Kuwait End of Service Indemnity Calculator 2026
Kuwait’s indemnity (ta’weed nihayat al-khidma) follows Articles 51–53 of Law No. 6 of 2010. Two things separate this calculator from the rest: it uses the total-remuneration wage basis Article 55 actually requires (not basic-only), and it labels the ÷26 divisor as convention — because the law never states it.
Calculate your Kuwait indemnity ESTIMATE ONLY
How it works: monthly-paid workers earn 15 days’ wage/yr (yrs 1–5), then 1 month’s wage/yr; daily-paid earn 10 days/yr then 15 days/yr. Days convert to months at the ÷26 payroll convention. Caps: 18 months’ wages (monthly-paid), 12 months (daily-paid). Resignation tiers (Art. 53, unlimited contracts): <3y = 0, 3–<5y = ½, 5–<10y = ⅔, 10+y = full.
TEST CASES (hand-verified 2026-10-09): monthly (500,7y4m,term)->2608.97; resigned->1739.32; (500,2y,resigned)->0; (1000,4y,term)->2307.69; (2000,25y)->capped 36000.00
The formula: Article 51
| Worker class | Years 1–5 | Year 6+ | Cap |
|---|---|---|---|
| Monthly-paid (Art. 51(b)) | 15 days’ wage/yr | 1 month’s wage/yr | 1.5 years’ wages (18 months) |
| Daily/weekly/piece/hourly (Art. 51(a)) | 10 days’ wage/yr | 15 days’ wage/yr | 1 year’s wage (12 months) |
The wage-basis dispute
Article 55 defines “wage” as basic salary plus all contract elements, allowances, commissions, grants and periodic cash privileges. Nearly every online calculator ignores this and uses basic salary only — which can nearly halve the figure for workers with large allowances. This calculator follows the statute (total remuneration) and flags the dispute: real PAM/court practice in contested cases is not publicly documented, so confirm with a Kuwaiti labor lawyer if your employer insists on basic-only.
Resignation tiers: Article 53
| Service at resignation (unlimited contract) | You receive |
|---|---|
| Less than 3 years | Nothing (0%) |
| 3 to under 5 years | Half (½) |
| 5 to under 10 years | Two-thirds (⅔) |
| 10 years or more | Full amount (100%) |
Full indemnity (Article 52) applies when the employer terminates, a fixed-term contract expires unrenewed, or a female worker resigns within a year of marriage.
Worked example
Monthly wage (total): KD 500 · Service: 7 years 4 months · Terminated by employer
- Years 1–5: 75 days = 75 ÷ 26 = 2.8846 months × 500 = KD 1,442.31
- Years 6–7.33: 2.3333 months × 500 = KD 1,166.67
- Total = KD 2,608.97 (cap = 18 × 500 = KD 9,000 — not hit)
- Had this worker resigned instead (unlimited contract, 7.33 yrs → two-thirds): KD 1,739.32
Frequently asked questions
How do I calculate Kuwait end-of-service indemnity?
For monthly-paid workers: 15 days’ wage per year for the first 5 years, then one full month’s wage per year after. Convert days to months using the common ÷26 divisor (a payroll convention, not statutory text), multiply by your monthly wage, and cap the result at 1.5 years’ wages (18 months).
Should I use basic salary or total salary for Kuwait indemnity?
Article 55 defines wage as basic salary plus all contract elements, allowances, commissions and periodic cash privileges — a total-remuneration basis. Most calculators use basic only, which understates the statutory figure. Real PAM/court practice in disputes is not publicly documented, so the page flags the dispute.
What is the ÷26 divisor in Kuwait indemnity?
Monthly salary ÷ 26 is a widely used payroll convention for the daily wage in Kuwait. It does not appear in Law No. 6 of 2010 — websites claiming it is “as per the labor law” are wrong about its source, though the convention itself is standard practice.
How does resignation affect Kuwait indemnity?
On unlimited contracts, Article 53 applies tiers: under 3 years = nothing; 3 to under 5 years = half; 5 to under 10 years = two-thirds; 10+ years = full. Termination by the employer, fixed-term expiry, and a woman resigning within a year of marriage all pay the full amount.
Is there really no minimum service for Kuwait indemnity?
The statute sets no minimum service threshold for termination cases — several secondary sites claim one year, but no primary basis was found for it. It is likely confused with the UAE/Qatar one-year rules.
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