End of Service Benefits in Kuwait (EOSB)

End-of-service benefits — commonly called indemnity or gratuity — are a mandatory payout every private sector employee in Kuwait receives when employment ends. This guide explains who qualifies, what is included, and how much you can expect.

What Are End of Service Benefits?

Under Kuwait Labor Law No. 6 of 2010, Article 51, every worker who completes at least one year of continuous service is entitled to an indemnity payment when the employment contract ends — whether by employer termination, contract expiry, or resignation (with reduced amounts for early resignation).

EOSB is separate from your monthly salary, annual leave balance, and any other allowances. It is calculated based on your last drawn basic salary and total years of service.

Who Is Eligible?

  • Private sector employees under Law No. 6 of 2010
  • Domestic workers (housemaids, drivers, nannies) under the domestic labor law
  • Employees with at least 1 year of continuous service
  • Both Kuwaiti nationals and expatriate workers

Oil sector and certain government employees may follow different regulations. Use our calculator and select the appropriate sector for accurate results.

How EOSB Is Calculated

Years 1–5

15 days of pay per year (daily wage = salary ÷ 26)

After Year 5

30 days of pay per year (equivalent to one full month)

The legal maximum is 18 months of salary. Unused annual leave days are typically paid separately on top of indemnity.

When Do You Receive Payment?

Employers must settle all end-of-service dues — including indemnity, unused leave, and outstanding salary — within 15 days of the contract end date. If your employer delays payment, you can file a complaint with the Public Authority for Manpower (PAM).

Calculate Your EOSB Now

Use our free Kuwait indemnity calculator for an instant, accurate breakdown.

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