Kuwait Indemnity Calculator
Updated November 2026 · Free · No sign-up
Calculate Kuwait end-of-service indemnity — the private-sector law: 15 days’ pay per year for the first 5 years, one month per year after, capped at 18 months’ pay, with resignation fractions (half/two-thirds/full).
Quick answer: Kuwait indemnity: 15 days/year (first 5 years) + 26 days... one month/year beyond, total capped at 1.5 years’ remuneration. Resignation pays half (3-5 yrs service), two-thirds (5-10), full (10+). Termination by employer: always full.
The Structure
| Years | Accrual |
|---|---|
| First 5 | 15 days’ remuneration per year |
| Beyond 5 | One month per year |
| Cap | 18 months’ (1.5 years’) total remuneration |
Monthly-paid workers’ daily rate divides by 26 (working days). The base is FULL remuneration — salary plus regular allowances and commission averages (broader than Qatar/UAE’s basic-only), which materially lifts Kuwaiti indemnities.
The Resignation Fractions
| Under 3 years | Nothing on resignation |
| 3 - 5 years | Half the indemnity |
| 5 - 10 years | Two-thirds |
| 10+ years | Full |
Worked Example
KD 900, 8 years, resignation: accrual = 5 × (15/26 × 900 ≈ 519) + 3 × 900 = 2,596 + 2,700 = KD 5,296 → two-thirds = KD 3,531. The same 8 years terminated: the full 5,296 — the resign-vs-terminate gap is real money; many negotiate "termination by mutual agreement" wording for exactly this reason.
Edges
Women resigning within 6 months of marriage and workers resigning for retirement/disability keep FULL indemnity regardless of tenure; social-security-registered Kuwaitis net indemnity differently (employer PIFSS contributions offset). Claims: the labour courts after mandatory mediation — wage records and the 26-divisor computation decide. Compare: Qatar, Saudi, UAE.
Frequently Asked Questions
How is indemnity calculated in Kuwait?
15 days’ full remuneration per year for the first five years, one month per year after, capped at 18 months — daily rate = monthly ÷ 26.
What does resignation pay?
Under 3 years: nothing; 3-5: half; 5-10: two-thirds; 10+: full — employer termination always pays in full.
Is indemnity on basic or full salary?
Full remuneration including regular allowances and commission patterns — broader than UAE/Qatar’s basic-only bases.
Who keeps full indemnity despite resigning?
Women resigning within 6 months of marriage, and exits for retirement, disability, or death — the statutory exceptions.
What is the indemnity cap?
One and a half years’ remuneration total, however long the service.
✓ Formula verified • Last updated: November 3, 2026