Kuwait Indemnity Calculator

For monthly-paid private-sector employees in Kuwait. Uses your last monthly salary.

KWD

Include housing, transport and other regular allowances.

More options

Days without pay are not counted as service.

Estimated entitlement
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Fill in your dates and salary – the result appears instantly.

§ Articles 51 and 53 (also 41)

Estimate only, based on the law as reviewed on 2026-10-11. Not legal advice – confirm with your employer or Public Authority for Manpower (PAM).

Rate
15 days/year (first 5 years), one month/year after
Minimum service
None if terminated; 3 years if you resign
Salary used
Full wage
Law
Articles 51 and 53 (also 41)

How it’s calculated

  1. Daily wage = last monthly salary ÷ 26 working days.
  2. Years 1–5: 15 days’ wage for each year.
  3. Every year after 5: one month’s wage (26 days).
  4. Part years count in proportion.
  5. The total cannot exceed 1.5 years’ wage (18 months).
  6. If you resigned from an indefinite contract (Article 53): under 3 years – nothing; 3–5 years – half; 5–10 years – two thirds; 10 years or more – the full amount.

Worked examples

4 years · KWD 450 a month
I resigned (indefinite contract)
KWD 519.231
12 years · KWD 900 a month
Employer terminated the contract
KWD 8,896.154

Legal reference

Legislation: Law No. 6 of 2010 on Labour in the Private Sector

Provisions: Articles 51 and 53 (also 41)

Official sources:

Last reviewed:

Good to know

  • Dividing by 26 working days is the established practice in Kuwait for converting a monthly salary to a daily wage for indemnity.
  • Daily, hourly and piece-rate workers have a lower rate (10 days per year for 5 years, then 15 days, capped at one year’s wage). This calculator covers monthly-paid workers.
  • Resignation reductions apply to indefinite (open-ended) contracts.
  • Under Article 41, a worker dismissed for serious misconduct loses the indemnity.
  • Some special cases (for example a female worker leaving after marriage) may qualify for the full indemnity – check with PAM.

Questions

How is indemnity calculated after 5 years in Kuwait?

The first five years earn 15 days each (75 days in total). Each year after that earns a full month’s salary.

Do I get indemnity if I resign after 2 years?

Not if you are on an indefinite contract. You need at least 3 years’ service to receive half the indemnity on resignation.

Why divide by 26 and not 30?

Kuwaiti practice treats a month as 26 working days when converting a monthly salary to a daily wage for indemnity.

Is there a maximum indemnity?

Yes. The indemnity cannot exceed one and a half years’ wage.

Same calculator in other GCC countries

This calculator gives an estimate based on our reading of the published law. It is not legal advice and is not affiliated with any government. Final amounts depend on your contract and records. Read the full disclaimer