Total remuneration, not just basic
Kuwait labour law defines indemnity on remuneration — the regular monthly package you earn, not a stripped-down basic figure unless that is genuinely all you receive. Courts look at payslips: if housing of 150 KWD appears every month for three years, it usually counts.
Typically included
- Basic salary
- Fixed housing allowance
- Fixed transport / food allowance
- Guaranteed shift or location premiums
Typically excluded
- Annual performance bonus (discretionary)
- Overtime and reimbursements
- One-time relocation payments
The 26-day divisor
Once you agree on the monthly figure, divide by 26 to get the daily rate — not 30. Example: 650 KWD total remuneration ÷ 26 = 25.00 KWD per indemnity day. Multiply that by your accrued days (15 per year for the first five, 30 after).
Salary examples at common Kuwait packages
| Package (KWD/mo) | Daily rate (÷26) | 7 yrs termination approx. |
|---|---|---|
| 350 | 13.46 | ~2,423 KWD |
| 500 | 19.23 | ~3,462 KWD |
| 750 | 28.85 | ~5,192 KWD |
| 1,000 | 38.46 | ~6,923 KWD |
Approximate gross indemnity before resignation adjustment or cap. Use the calculator for your exact dates.
What to do if payroll uses basic only
Request a written breakdown. Compare with your contract and last 12 payslips. If the gap is large, document everything before signing a release form — PAM complaints often turn on whether allowances were fixed and contractual.
Related guides
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