Kuwait indemnity rules: how end-of-service pay works
Everything that decides your end-of-service indemnity in Kuwait — accrual, the resignation ladder, the cap — in plain English, with the article behind each rule. Want the number? The indemnity calculator does the maths.
How the indemnity accrues (Article 51)
Kuwait's end-of-service benefit — locally, "indemnity" — is set by Article 51 of Labour Law No. 6 of 2010. For a monthly-paid worker it builds up in two stages: half a month's wage for each of the first five years, then a full month's wage for each year beyond five. The law expresses these as a "15-day wage" and a "one-month wage" — and since 15 days is half a 30-day month, the cleaner way to read it is half-month then full-month.
The wage it's based on
The indemnity is calculated on your last total remuneration — basic pay plus regular allowances — not basic alone. That makes it closer to the Saudi approach than to the UAE's basic-only base.
The 18-month cap
However long you serve, total indemnity can't exceed 18 months (1.5 years) of wage. On the half-month/full-month schedule, you reach the cap at around 23 years of service.
The resignation ladder
If you resign from an indefinite contract, your indemnity is scaled by how long you stayed:
| Service | You receive |
|---|---|
| Under 3 years | Nothing |
| 3 to 5 years | Half (½) |
| 5 to 10 years | Two thirds (⅔) |
| 10 years or more | The full indemnity |
Termination by the employer pays the full indemnity regardless of tenure — even below three years. And a fixed-term contract that runs to its natural end pays in full.
Worked examples
Take a worker on KWD 600 a month:
| Scenario | Calculation | Indemnity |
|---|---|---|
| Terminated, 8 years | (½ × 5 + 3) × 600 | KWD 3,300 |
| Resigned, 8 years (⅔) | 3,300 × ⅔ | KWD 2,200 |
| Resigned, 4 years (½) | (½ × 4) × 600 × ½ | KWD 600 |
| Resigned, 2 years | under 3 years | KWD 0 |
A note on the source
Kuwait's official labour-law texts are published as scanned documents, and we couldn't machine-read the statute directly. The figures here rest on the law's well-attested wording — the 15-day/one-month schedule, the 18-month cap, and the resignation fractions — cross-checked across multiple sources. We'll refine this further if a clean copy of the statute becomes available.
When to get advice
This is a confident, law-based estimate, but contracts and individual circumstances vary. For a binding figure, confirm with the Public Authority for Manpower or a qualified advisor.
Based on Kuwait Labour Law (Law No. 6 of 2010), Article 51 — last verified 14 June 2026.
Frequently asked
How is indemnity calculated in Kuwait?
For monthly-paid workers, half a month's wage for each of the first five years, then a full month's wage for each year after, capped at 18 months — on your last total remuneration (Article 51).
What do I get if I resign?
It depends on your service: nothing under three years, half from three to five, two thirds from five to ten, and the full indemnity at ten years or more. Employer termination always pays in full.
Is the indemnity on basic or total salary?
On your last total remuneration — basic plus regular allowances, not basic alone.
Is there a maximum?
Yes — total indemnity is capped at 18 months (1.5 years) of wage, however long you served.
Do expats get indemnity in Kuwait?
Yes. Article 51 covers all private-sector employees, Kuwaiti and non-Kuwaiti alike.