1. Recommended Excel Worksheet Layout

Set up your Excel columns according to this schema for standard automated Kuwait Labor Law payroll processing:

Cell	Field Description	Example Value
A2	Employee Full Name	Ahmed Al-Mutawa
B2	Monthly Remuneration (KWD)	650
C2	Service Duration in Years (Decimal)	7.5
D2	Separation Reason ("Termination" or "Resignation")	"Resignation"

2. Master Gross Indemnity Formula (Cell E2)

This formula evaluates whether the employee has served 5 years or less, handles pro-rata partial years, and automatically caps the indemnity at 18 months' salary:

=MIN(B2*18, IF(C2<=5, C2*15*(B2/26), (5*15*(B2/26)) + ((C2-5)*30*(B2/26))))

B2/26 derives the official daily wage rate.
C2<=5 checks if service is within the 15-day rate tier.
MIN(B2*18, ...) strictly enforces the 18-month statutory cap.

3. Net Payout with Resignation Multiplier (Cell F2)

To adjust for voluntary resignation tiers under Article 51, use this nested IF function:

=IF(D2="Termination", E2, IF(C2<3, 0, IF(C2<5, E2*0.5, IF(C2<10, E2*(2/3), E2))))

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