How to use this calculator
- Enter your last monthly wage in KWD. Kuwait's indemnity is based on your last remuneration, which includes regularly paid allowances — not basic salary alone.
- Enter your years and extra months of service.
- Choose termination or resignation, then click Calculate. The resignation scale only applies to indefinite (open-ended) contracts.
Formula — how it is calculated
Article 51 of Labour Law No. 6 of 2010 gives monthly-paid workers 15 days' wage for each of the first five years of service and one month's wage for each year after that. Fractions of a year are paid in proportion. Kuwait practice treats the working month as 26 days, so the daily wage is your monthly wage divided by 26 — using 30, as some generic Gulf calculators do, understates a Kuwait indemnity by roughly 13%. The total indemnity is capped at 18 months' wage (one and a half years' remuneration). Workers paid by the day, week or piece follow a lower scale (10 days, then 15 days, capped at one year) which this calculator does not cover.
If the employer ends the contract — or a fixed-term contract expires — the full accrued indemnity is payable (Article 52). If you resign from an indefinite contract, Article 53 scales it: under 3 years, nothing; 3 to under 5 years, one half; 5 to under 10 years, two thirds; 10 years or more, the full amount. The law also gives a woman who ends her contract because of marriage within the specified period a fuller entitlement — a special case to confirm with the Public Authority for Manpower (PAM). Oil-sector employees are under a different, older law (No. 28 of 1969) with higher rates; this calculator is for the private sector under Law 6/2010.
Worked example
Omar's monthly wage is KWD 1,000 and he has served 7 years. His daily wage is 1,000 ÷ 26 = KWD 38.46. The first five years earn 5 × 15 = 75 days; the next two earn 2 × 30 = 60 days; total 135 days. 135 × 38.46 = KWD 5,192.31, well below the 18-month cap of KWD 18,000. If his employer ends the contract, he receives the full KWD 5,192.31. If Omar resigns from an indefinite contract at 7 years, Article 53 pays two thirds: KWD 3,461.54. Both figures appear when you try the defaults above.
Frequently asked questions
Why does Kuwait divide the salary by 26 and not 30?
Kuwait treats a month as 26 working days when converting a monthly wage to a daily wage for indemnity. Dividing by 30 — correct for the UAE, Saudi Arabia and Qatar — would understate a Kuwaiti indemnity.
How much indemnity do I get if I resign in Kuwait after 4 years?
On an indefinite contract, resignation at 3 to under 5 years pays one half of the accrued indemnity under Article 53. Under 3 years, resignation pays nothing.
What is the maximum indemnity in Kuwait?
For monthly-paid workers the indemnity is capped at 18 months' wage — one and a half years of remuneration — however long the service.
Is Kuwait indemnity based on basic salary or total wage?
On the last remuneration, which includes regularly paid allowances. That is broader than the basic-salary-only basis used in the UAE, Qatar and Oman.
Does this calculator cover the oil sector or domestic workers?
No. Oil-sector staff follow Law No. 28 of 1969 and domestic workers follow Law No. 68 of 2015. This calculator applies the private-sector Labour Law No. 6 of 2010 for monthly-paid employees.