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● Free HR tool · Private Sector Labour Law 6/2010

Kuwait Indemnity Calculator 2026

Looking for an indemnity calculator Kuwait employees and HR teams can trust? This one follows Articles 51 to 53 of Private Sector Labour Law No. 6 of 2010 and applies the resignation reductions and the 18-month cap automatically.

  • 15 days then 1 month per year
  • Resignation reductions built in
  • 18-month cap applied

Last updated October 2026 · Reviewed against current labor law

Calculate indemnity

Pick a country, enter your salary and dates of service.

How did employment end?
KWD
Last total wage including regular allowances.

How indemnity is calculated in Kuwait: for monthly-paid employees, pay 15 days of wages for each of the first 5 years and one month of wages for each year after that, capped at 18 months of wages. Employees who resign receive nothing under 3 years, half for 3 to 5 years, two thirds for 5 to 10 years and the full amount after 10 years.

Indemnity calculator Kuwait 2026 showing 15 days per year for the first 5 years and 1 month per year after
How the indemnity calculator Kuwait page works out end of service indemnity.

Kuwait indemnity formula

Indemnity = (Wage / 26 × 15 × first 5 years) + (Wage × years after 5)

The wage is the last total monthly wage including regular allowances. The daily rate is commonly taken as the monthly wage divided by 26, following court practice. Confirm the divisor with your employer or a legal adviser for a final settlement.

Worked example

Monthly wage of KWD 900 and 8 years of service, ended by the employer. First 5 years: 900 / 26 × 15 × 5 = KWD 2,596.154. Next 3 years: 3 × 900 = KWD 2,700. Total: KWD 5,296.154. On resignation the employee would receive two thirds: KWD 3,530.769.

Resignation reductions in Kuwait

Years of serviceEmployee resignsEmployer ends contract
Less than 3 yearsNo indemnityFull indemnity
3 to 5 yearsHalfFull indemnity
5 to 10 yearsTwo thirdsFull indemnity
10 years or moreFull indemnityFull indemnity

A female employee who resigns within 1 year of marriage receives the full indemnity. Since 2017, employers can no longer deduct their PIFSS social security contributions from the indemnity.

How to use the Kuwait indemnity calculator

  1. Choose how employment ended. Pick contract ended or terminated, or resigned. Resignation reduces indemnity for service under 10 years.
  2. Enter the monthly wage. Use the last total wage, including regular allowances such as housing and transport.
  3. Enter the joining date and last working day. The indemnity calculator Kuwait tool counts years and partial years for you.
  4. Click Calculate. You see the indemnity amount, the formula, the split between the first 5 years and later years, and any resignation reduction.

Who is covered by Kuwait end of service indemnity

  • Private sector employees covered by Labour Law No. 6 of 2010, including expatriate workers.
  • Not covered: government sector employees, and domestic workers, who fall under a separate domestic labor law.
  • Kuwaiti nationals are also enrolled with the Public Institution for Social Security (PIFSS). Check how your indemnity and PIFSS benefits interact with your employer.

Resignation example

Monthly wage of KWD 1,200 and 4 years 6 months of service, employee resigns. Full indemnity is 1,200 / 26 × 15 × 4.5 = KWD 3,115.38. With 3 to 5 years of service the employee receives half, so the Kuwait indemnity calculator shows KWD 1,557.69.

Is end of service indemnity taxed in Kuwait?

Kuwait does not levy personal income tax, so end of service indemnity is not taxed. Employers can pay more than the statutory amount under the employment contract or company policy. This end of service calculator Kuwait page shows the legal minimum.

Sources

This indemnity calculator Kuwait page is based on the following sources, reviewed in October 2026:

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    Frequently asked questions

    Is this indemnity calculator Kuwait tool free?

    Yes. The calculator is free. You share your name, work email and phone number once and can then calculate as many times as you like.

    Is Kuwait indemnity taxable?

    No. Kuwait does not tax personal income, so end of service indemnity is paid in full.

    How is end of service indemnity calculated in Kuwait?

    15 days of wages for each of the first 5 years and one month of wages for each year after that, capped at 18 months of wages, for monthly-paid employees.

    Do I get indemnity if I resign in Kuwait?

    Only after 3 years. You receive half for 3 to 5 years, two thirds for 5 to 10 years and the full indemnity after 10 years.

    Is Kuwait indemnity based on basic or total salary?

    It is generally based on the last total wage, including regular allowances.

    Can my employer deduct social security from my indemnity?

    No. Since 2017, the law stops employers deducting their PIFSS contributions from end of service indemnity.