A single-page cheat sheet for employees and HR teams. Bookmark this when reviewing a settlement letter or preparing a PAM complaint — every rule below comes from Kuwait Labour Law No. 6 of 2010 and common administrative practice in 2026.
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.
Eligibility rules
Minimum 1 year continuous service for indemnity (private sector, monthly paid)
Applies on termination, resignation (with tiers), contract expiry, or death (paid to heirs)
Unpaid leave days may reduce total service length
Calculation rules
Years 1–5
15 days' pay per year
Year 6+
30 days' pay per year
Daily rate
Monthly remuneration ÷ 26
Maximum cap
18 months' salary (monthly-paid workers)
Resignation rules (open-ended contract)
Service length
You receive
< 3 years
0%
3 – under 5 years
50%
5 – under 10 years
66.67%
10+ years
100%
Payment rules
Employer should settle within ~15 days of contract end
Unused annual leave (Article 70) is paid separately