Resignation Indemnity Rules in Kuwait

When you voluntarily resign in Kuwait, your indemnity is reduced based on how long you have worked. This is one of the most searched topics by expatriate employees planning to leave Kuwait.

Resignation vs Employer Termination

If your employer terminates your contract (without cause attributable to you), you receive 100% of your calculated indemnity. If you resign voluntarily, Kuwait Labor Law applies a sliding scale that rewards longer service.

Resignation Percentage Table

Years of ServiceIndemnity %Example (KD 500 salary, 4 yrs)
Less than 3 years0%KD 0
3 to less than 5 years50%~KD 1,154 (half)
5 to less than 10 years66.67%Two-thirds of total
10 years or more100%Full amount

Worked Example: Resigning After 4 Years

Salary: KD 400/month, Service: 4 years, Reason: Resignation

  1. Daily wage = 400 ÷ 26 = KD 15.385
  2. Indemnity days = 4 × 15 = 60 days (all within first 5-year bracket)
  3. Gross indemnity = 60 × 15.385 = KD 923.08
  4. Resignation at 4 years = 50% → Final payout: KD 461.54

If the same employee had been terminated by the employer, they would receive the full KD 923.08.

Should You Wait Before Resigning?

Many employees time their resignation to hit key milestones — especially the 3-year mark (first eligibility), 5-year mark (higher rate + 30-day formula kicks in for future years), and 10-year mark (full 100%). Use our calculator's comparison feature to see termination vs resignation side by side.

Compare Resignation vs Termination

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