Kuwait Indemnity Calculator
Leaving a job in Kuwait? Find out what your end-of-service payout should be — before HR hands you a number. Free, instant, and based on Article 51 of the labour law.
Work Out Your Payout
Salary, dates, and whether you're resigning or being let go — that's all we need.
Four steps — that's the whole formula
Article 51 sounds complicated until you break it down. Here's how it actually works.
Figure out your daily wage
Kuwait law says divide your monthly salary by 26 — that's your daily rate. Not 30, not 31. A lot of companies get this wrong on purpose or by mistake.
Daily Rate = Monthly Salary ÷ 26Add up your service years
First five years count at 15 days each. Every year after that jumps to 30 days. Worked 7 years and 4 months? The four months get counted proportionally — they matter.
(Years ≤ 5 × 15 × Daily) + (Years > 5 × 30 × Daily)Check the 18-month ceiling
No matter how the math works out, you can't receive more than 18 months of your salary. High earners with long service often hit this cap.
Maximum = Monthly Salary × 18Resignation cuts apply
Walking away voluntarily? Your payout shrinks unless you've done 10+ years. Getting let go by the company? You usually keep the full amount.
Final = Gross × Resignation MultiplierPro-rata calculation: If you have worked partial years (e.g., 7 years and 4 months), the remaining months are calculated proportionally. Every fraction of a year counts toward your indemnity.
Why we built this calculator
A plain-English guide to the tool — and the law behind it.
If you've worked in Kuwait for any length of time, you've probably heard colleagues argue about indemnity at least once. Someone says the company owes them 18 months. Someone else insists it's only basic salary, not the full package. HR quotes one figure, WhatsApp groups quote another. It's confusing — and that's before you even get to the resignation penalties.
We built indemnitycalculatorkuwait.com because the math itself isn't that complicated, but getting a straight answer is. Article 51 of Law No. 6 of 2010 lays out a clear formula: 15 days' pay per year for your first five years, then 30 days per year after that. Your daily rate comes from dividing monthly salary by 26 — not 30, which is where a lot of employers slip up. There's also a hard cap at 18 months' salary, and if you're resigning rather than being terminated, a sliding scale kicks in that can cut your payout sharply.
This kuwait indemnity calculator runs the whole thing for you. Pick termination if the company ended your contract — you'll generally get the full calculated amount after one year of service. Pick resignation if you're leaving on your own, and the tool applies the right percentage: nothing under three years, half between three and five, two-thirds between five and ten, and full only after ten years. No spreadsheet, no guessing.
A lot of our users are expats — engineers in Salmiya, nurses in Jabriya, drivers, accountants, domestic workers. Kuwait doesn't tax personal income, so whatever you're owed lands in your pocket, but you still need to know the number before you book your flight home. The calculator shows results in KWD and converts to USD, INR, PHP, EGP, and a handful of other currencies people commonly send money to.
One thing worth saying upfront: this tool is for Kuwait only. Bahrain, Saudi, Qatar, and the UAE all have their own end-of-service rules. If you landed here searching for an indemnity calculator Bahrain, the formula over there is completely different. Stick to Kuwait-specific sources for Kuwait-specific payouts.
We keep the calculator updated as labour rules evolve — the 2026 version still follows the same Article 51 structure that's been in place for years. Nothing runs on our servers; your salary stays on your device. You can add unpaid leave days, unused annual leave, and see a visual breakdown of the first-five-years vs after-five-years portions.
Honestly, the best time to run the numbers is before your last day — not when you're already arguing with payroll. Scroll up, plug in your details, and walk into that meeting knowing what you should get. If you want the longer version with worked examples and Excel formulas, we've written those up in our blog too.
How the law actually calculates it
Article 51 isn't as scary as it sounds. Here's the short version.
How is Indemnity in Kuwait Calculated?
Kuwait splits your service into two buckets. First five years earn you 15 days' pay per year. Everything after that earns 30 days per year — basically a full month for each additional year. Your daily rate always comes from salary divided by 26, not calendar days.
- Years 1–5: 15 days × daily wage × years worked
- Year 6 onwards: 30 days × daily wage × extra years
- Partial months count pro-rata — 7 years 4 months isn't rounded down
- Total can't go above 18 months of your salary, no matter the math
Resignation vs Termination Rules
This is where people get caught out. Resigning on your own terms costs you — sometimes everything. Getting terminated (without misconduct) usually means the full amount.
- Employer terminates you: full indemnity after 1+ year
- You resign under 3 years: nothing
- Resign at 3–5 years: half
- Resign at 5–10 years: two-thirds
- Resign after 10 years: full amount — same as termination
Guides worth reading
View all articles →Detailed walkthrough with sample equations and payslip breakdowns.
EOSBEnd of Service Benefits ↗Eligibility, payout timeline, and how to claim your dues.
RESIGNATIONResignation Indemnity Rules ↗0%, 50%, 66.67% and 100% rules explained with examples.
BENCHMARK5 Years Indemnity Rule ↗Exact 75-day payout tables across different salary tiers.
DOMESTICDomestic Worker Indemnity ↗Housemaid, driver, and household staff EOSB rights.
SPREADSHEETExcel Formula & Template ↗Copy-paste IF formulas and 18-month cap logic for your sheets.
Questions we get asked a lot
Indemnity rules confuse everyone at first. Here are straight answers — no legal jargon where we can avoid it.
Quick answers
The stuff people usually search for first
Yes — it's not optional. Private-sector employers have to pay end-of-service indemnity when your contract ends, as long as you meet the service requirements. Article 51 of Law No. 6 of 2010 covers this. If they refuse, you can file with PAM (Public Authority for Manpower).
By Kuwait standards, 3,000 KWD a month is well above average — most expat workers earn considerably less. At that salary, your indemnity adds up fast. Someone terminated after 10 years could be looking at KWD 50,000 or more before the cap kicks in. Plug your own numbers into the calculator above to see where you land.
Divide your monthly salary by 26 to get your daily wage. Multiply by 15 for each year in your first five years of service, then by 30 for every year after that. Check if the total exceeds 18 months of salary — if it does, the cap applies. Resigning? You'll take a haircut depending on how long you've worked.
Easiest way: use the calculator on this page. Put in your salary, how long you've worked, and whether you're resigning or being terminated. It handles the 26-day divisor, the two tiers, the cap, and the resignation percentages in one go.
As of 2026, nothing major has changed on indemnity. It's still 15 days per year for the first five, 30 days after that, salary divided by 26, capped at 18 months. Resignation penalties are the same too. Always worth checking PAM's website if you're unsure about a recent circular.
It's the lump sum your employer owes you when you leave — sometimes called EOSB or gratuity. Think of it as a reward for your years of service, calculated from your salary and how long you worked. In Kuwait it's a legal right, not a bonus the company can choose to skip.
The longer you stay, the more you build up — but the rate doubles after year five. Resign early and you might get nothing or a fraction. Get terminated (without serious misconduct) and you typically get the full calculated amount. There's also a ceiling: no one gets more than 18 months of salary, no matter how many decades they worked.
Same as indemnity — they're the same thing in Kuwait. Daily rate = salary ÷ 26. First five years at 15 days each, then 30 days per year beyond that. Don't forget unused annual leave is separate (Article 70) and gets added to your final settlement on top of indemnity.
That's the payout when the company ends your contract, not you. After at least one year, you're usually entitled to 100% of what the formula calculates. The main exception is gross misconduct under Article 41 — in that case you might lose part or all of it.
More detail
Salary caps, leave days, Excel formulas, and edge cases
It's the money your employer pays you when you leave — your thank-you for the years you put in. Legally it's called indemnity or EOSB, and Article 51 sets the rules for how much you get based on salary and service length.
Two speeds: 15 days' pay per year for your first five years, then 30 days per year after that. Daily pay = monthly salary ÷ 26. There's a hard stop at 18 months' total salary — nobody gets more than that.
At exactly five years on a KWD 500 salary: 5 × 15 × (500÷26) = about KWD 1,442. If you resigned at that point you'd only get half (~KWD 721) because five years falls in the 3–5 year resignation bracket. Terminated? You'd get the full amount.
Depends how long you've been there. Under 3 years — nothing. 3 to 5 years — half. 5 to 10 — two-thirds. Over 10 years — full amount, same as if you'd been terminated. A lot of people don't realise resigning at year 4 costs them half their payout.
The law refers to "remuneration" which generally includes your full monthly salary package. While some employers use only basic salary, the legal interpretation covers all regular monthly compensation. Your daily rate is calculated as: Monthly Salary ÷ 26.
Yes. For employees paid on a monthly basis, the total indemnity cannot exceed 18 months' salary (1.5 years of your monthly remuneration), as per Article 51.
Partial years are calculated pro-rata. For example, if you worked 7 years and 4 months, the 4 months count as 4/12 of a year. You get the full 5-year first-tier amount, plus 2 years and 4 months at the second-tier rate.
For termination by the employer, you need at least 1 year of service to qualify. For resignation, you need at least 3 years of service to receive any indemnity payment.
Domestic workers (housemaids, drivers, etc.) are covered under a separate domestic labor law (Law No. 68 of 2015) which has its own indemnity provisions. The calculation may differ from the standard labor law.
Yes, under the law, any outstanding debts or loans owed to the employer can be legally deducted from your final indemnity payment.
Yes. Under Article 70 of the Kuwait Labor Law, you are entitled to payment for any accrued but unused annual leave days as part of your final settlement, calculated at your daily rate.
Unpaid leave days are deducted from your total service period. For example, if you took 30 unpaid leave days over your employment, those days are subtracted before calculating your service duration.
In Excel, you can use: =IF(Years<=5, Years*15*(Salary/26), 5*15*(Salary/26) + (Years-5)*30*(Salary/26)). Then apply the 18-month cap with =MIN(Result, Salary*18). For resignation, multiply by the appropriate fraction based on service years.
Kuwait does not have personal income tax, so your indemnity payment is received in full without any tax deductions.
Your employer is required to pay your end-of-service indemnity within 7 days from the end of your employment relationship. If delayed, you can file a complaint with the Ministry of Social Affairs and Labor.
This calculator is primarily designed for the private sector under Kuwait Labor Law No. 6 of 2010. Government and oil sector employees may have different indemnity structures governed by separate regulations.
Under Article 55, if you are terminated for gross misconduct (as defined in Article 41), you may lose your right to indemnity partially or entirely, depending on the circumstances.
Our calculator shows your indemnity in KWD (Kuwaiti Dinar) and automatically converts it to 12+ other currencies including USD, EUR, INR, PKR, PHP, EGP, BDT, AED, and SAR for your convenience.
We follow Article 51 to the letter — same formula PAM uses. That said, your contract might offer more than the legal minimum, or your case might have complications (misconduct, special sector rules). Use this as a solid starting point, then confirm with HR or a labour lawyer if the numbers don't match.
Yep — hit Share after calculating and you'll get a link with your inputs baked in. Handy for sending to a friend or keeping for your records.
Article 51 of Law No. 6 of 2010 specifies the formula for end-of-service indemnity: 15 days' remuneration per year for the first five years, and one month's remuneration per year thereafter. The article also sets out the reduced entitlements for employees who resign.
Part-time employees are entitled to indemnity proportional to their working hours. The calculation uses their actual part-time salary, and the same Article 51 formula applies.
You should have your employment contract, salary slips (especially the most recent), work permit/residency details, and any documentation of your start and end dates. These help verify your service period and salary for the calculation.
The Article 51 calculation is the legal minimum. Your employment contract may provide for a higher indemnity. You cannot receive less than the legal minimum, but you can negotiate for more.
In Kuwait, "indemnity" and "gratuity" (or "end-of-service benefits") refer to the same thing — the mandatory payment under Article 51. Some countries use different terminology, but in Kuwait's context, they are identical.
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