Indemnity Calculation After 18 Years in Kuwait

After enough years, the math stops growing. Article 51 caps monthly-paid workers at 18 months of salary — no matter how many indemnity days you technically accrued. Here is when that cap kicks in and what long-service employees actually receive.

Last reviewed: Checked against Law No. 6 of 2010, Article 51

Written for employees and HR teams in Kuwait. Not legal advice — confirm disputed amounts with PAM or a licensed lawyer.

LEGAL CAP

The 18-month salary maximum

For employees paid monthly, total indemnity cannot exceed 18 times your monthly remuneration (one and a half years). If the day-count formula gives more than that, your employer pays the cap instead.

Maximum indemnity = Monthly Salary × 18

When does the cap apply?

Roughly speaking, very high salaries or very long service push you into the cap zone. On a 600 KWD salary, the raw formula exceeds 10,800 KWD only after about 18–19 years of service (depending on partial months). Senior managers who stayed with one Kuwait company for two decades often hit this ceiling.

Example: 18 years at 1,000 KWD/month

  1. First 5 yrs: 75 days × (1000 ÷ 26) = 2,884.62 KWD
  2. Next 13 yrs: 390 days × 38.462 = 15,000.00 KWD
  3. Raw total ≈ 17,884.62 KWD
  4. Cap = 1,000 × 18 = 18,000 KWD — not exceeded yet at exactly 18 years

Add a few more years or a higher salary and the cap becomes the final number on your settlement letter.

Resignation still matters before the cap

Even when capped, resignation percentages apply to the amount before the cap is checked — unless you have 10+ years and resign with full entitlement. Use the calculator to see termination vs resignation side by side for your exact dates.

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