Calculate your end-of-service indemnity in Kuwait instantly. Free, accurate, and based on current Kuwait Labor Law.
Calculate Now Calculate By YearAn indemnity (end-of-service benefit) is a mandatory payment that employers in Kuwait must provide to employees upon termination of their employment contract. This benefit is calculated based on your years of service and monthly salary, as stipulated by the Kuwait Labor Law.
The indemnity matters because it provides financial security for employees transitioning between jobs and serves as recognition for their years of dedicated service. In Kuwait, this benefit is protected by law and ensures workers receive fair compensation for their contribution to their employer's success.
15 days salary for each year of service
1 month salary for each additional year
Legal Reference: This calculator is based on the official Kuwait Labor Law. For complete legal details, please refer to the Ministry of Justice, Kuwait official documentation.
Reviewed by HR & Legal Expert
Quick reference guide showing how your end-of-service benefit increases with years of service. Based on a sample salary of 1,000 KWD per month.
| Years of Service | Calculation Formula | Total Days | Example Amount (1,000 KWD/month) |
|---|---|---|---|
| Indemnity calculation for 1 year | 15 days x 1 year | 15 days | 500 KWD (0.5 months) |
| Indemnity calculation for 2 years | 15 days x 2 years | 30 days | 1,000 KWD (1 month) |
| Indemnity calculation for 3 years | 15 days x 3 years | 45 days | 1,500 KWD (1.5 months) |
| Indemnity calculation for 4 years | 15 days x 4 years | 60 days | 2,000 KWD (2 months) |
| Indemnity calculation for 5 years | 15 days x 5 years | 75 days | 2,500 KWD (2.5 months) |
| Indemnity calculation for 6 years | (15 days x 5) + (30 days x 1) | 105 days | 3,500 KWD (3.5 months) |
| Indemnity calculation for 7 years | (15 days x 5) + (30 days x 2) | 135 days | 4,500 KWD (4.5 months) |
| Indemnity calculation for 8 years | (15 days x 5) + (30 days x 3) | 165 days | 5,500 KWD (5.5 months) |
| Indemnity calculation for 9 years | (15 days x 5) + (30 days x 4) | 195 days | 6,500 KWD (6.5 months) |
| Indemnity calculation for 10 years | (15 days x 5) + (30 days x 5) | 225 days | 7,500 KWD (7.5 months) |
Years 1-5 (Yellow rows): You receive 15 days of salary for each year worked. This is the standard rate for your first five years of service.
Years 6+ (Orange rows): After completing 5 years, you receive 30 days (1 full month) of salary for each additional year. Notice how your indemnity grows faster after year 5!
Kuwait's Private Sector Labor Law No. 6 of 2010 mandates that all employees are entitled to an end-of-service indemnity upon termination of their employment contract. This gratuity calculator ensures compliance with current Kuwaiti labor regulations.
The Kuwait indemnity calculation follows a progressive structure that rewards long-term service. Our end-of-service benefit calculator uses the exact formula specified in Kuwait Labor Law.
Input your exact start and end dates of employment in Kuwait. Our calculator automatically calculates your total service period.
Enter your current basic monthly salary in Kuwaiti Dinars (KWD). Use your base salary excluding allowances and bonuses.
Receive immediate calculations showing your total indemnity amount with a detailed breakdown of the computation.
Our calculator follows the exact provisions of Kuwait Labor Law No. 6 of 2010, ensuring precise indemnity calculations.
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Kuwait's oil industry employees are subject to standard labor law indemnity calculations. Additional benefits may be provided through company policies.
Financial sector employees in Kuwait receive standard indemnity plus potential contractual bonuses. Some banks offer enhanced gratuity packages.
Healthcare and education professionals follow standard Kuwait labor law calculations with possible institutional variations.
Disclaimer: This calculator is for informational purposes only. Results are estimates based on Kuwait Labor Law. Please consult the official Kuwait Labor Law or a legal advisor for definitive calculations, especially for complex employment situations.
Calculate your end-of-service indemnity based on specific years of service. Simply select your years and enter your salary for instant results.
💡 This quick calculator is perfect for comparing indemnity amounts for different years of service.
If you've completed one full year of service in Kuwait, you're entitled to receive an end-of-service indemnity payment. Understanding the indemnity calculation for 1 year is essential for employees completing their first year of employment.
According to Kuwait Labor Law, the indemnity calculation for 1 year is straightforward: you receive 15 days of your basic monthly salary.
Indemnity = (Monthly Salary ÷ 30 days) x 15 days
The indemnity calculation for 1 year equals exactly half of your monthly salary (0.5 months), making it easy to estimate your end-of-service benefit when planning your career moves in Kuwait.
After completing two years of service in Kuwait, your end-of-service indemnity doubles compared to one year. The indemnity calculation for 2 years provides employees with one full month of salary as their gratuity payment.
For the indemnity calculation for 2 years, you receive 30 days total (15 days per year x 2 years), which equals exactly one month of your basic salary.
Indemnity = (Monthly Salary ÷ 30 days) x 30 days = Monthly Salary x 1
The indemnity calculation for 2 years is particularly easy to remember as it equals exactly one month's salary, providing a clear benchmark for employees in their second year of employment.
Three years of service marks an important milestone in Kuwait employment. The indemnity calculation for 3 years provides employees with 1.5 months of salary, and after three years, employees gain additional rights under Kuwait Labor Law.
The indemnity calculation for 3 years gives you 45 days total (15 days per year x 3 years), equivalent to 1.5 months of your basic monthly salary.
Indemnity = (Monthly Salary ÷ 30 days) x 45 days = Monthly Salary x 1.5
With four years of dedicated service, your end-of-service benefit continues to grow. The indemnity calculation for 4 years provides two full months of salary, rewarding your commitment to your employer in Kuwait.
The indemnity calculation for 4 years totals 60 days (15 days per year x 4 years), which equals exactly 2 months of your basic monthly salary.
Indemnity = (Monthly Salary ÷ 30 days) x 60 days = Monthly Salary x 2
Understanding the indemnity calculation for 4 years helps you plan financially, as you'll receive exactly two months of salary when your employment ends after four years of service.
Five years represents a critical milestone in Kuwait's labor law. The indemnity calculation for 5 years marks the transition point where the calculation rate changes for subsequent years, making this an important benchmark for long-term employees.
The indemnity calculation for 5 years provides 75 days total (15 days per year x 5 years), equivalent to 2.5 months of your basic monthly salary.
Indemnity = (Monthly Salary ÷ 30 days) x 75 days = Monthly Salary x 2.5
Six years of service marks your entry into enhanced indemnity benefits. The indemnity calculation for 6 years shows the impact of Kuwait Labor Law's progressive structure, where your indemnity accelerates after five years.
The indemnity calculation for 6 years combines two different rates: 15 days per year for the first 5 years, plus 30 days for the 6th year.
First 5 years: (Monthly Salary ÷ 30) x 75 days
6th year: (Monthly Salary ÷ 30) x 30 days
Total: 105 days = 3.5 months of salary
The indemnity calculation for 6 years demonstrates how your benefits increase significantly once you pass the five-year mark, making long-term employment in Kuwait more rewarding.
Seven years of loyal service deserves substantial recognition. The indemnity calculation for 7 years continues the enhanced benefit structure, providing employees with 4.5 months of salary as their end-of-service benefit.
The indemnity calculation for 7 years includes 75 days for the first 5 years plus 60 days for years 6-7, totaling 135 days.
First 5 years: (Monthly Salary ÷ 30) x 75 days
Years 6-7: (Monthly Salary ÷ 30) x 60 days
Total: 135 days = 4.5 months of salary
Understanding the indemnity calculation for 7 years helps employees appreciate the value of staying with their employer, as the benefits grow substantially with each additional year after the fifth year.
Eight years of continuous employment demonstrates significant commitment. The indemnity calculation for 8 years reflects Kuwait Labor Law's appreciation for long-term employees, providing 5.5 months of salary as end-of-service benefits.
The indemnity calculation for 8 years totals 165 days: 75 days for years 1-5, plus 90 days for years 6-8 (30 days each).
First 5 years: (Monthly Salary ÷ 30) x 75 days
Years 6-8: (Monthly Salary ÷ 30) x 90 days
Total: 165 days = 5.5 months of salary
The indemnity calculation for 8 years showcases how substantial your end-of-service benefit becomes as you approach a decade of service, making it a significant financial cushion for career transitions.
Nine years of service places you among the most experienced employees. The indemnity calculation for 9 years provides 6.5 months of salary, representing a significant financial benefit that recognizes your long-term dedication.
The indemnity calculation for 9 years combines 75 days for the first 5 years with 120 days for years 6-9, totaling 195 days of salary.
First 5 years: (Monthly Salary ÷ 30) x 75 days
Years 6-9: (Monthly Salary ÷ 30) x 120 days
Total: 195 days = 6.5 months of salary
The indemnity calculation for 9 years demonstrates the substantial financial protection Kuwait Labor Law provides to long-serving employees, approaching nearly 7 months of salary as you near the decade mark.
A decade of service is a remarkable achievement. The indemnity calculation for 10 years provides the most substantial benefit yet - 7.5 months of salary - reflecting Kuwait's commitment to rewarding long-term employee loyalty.
The indemnity calculation for 10 years is straightforward: 75 days for the first 5 years plus 150 days for years 6-10, totaling an impressive 225 days.
First 5 years: (Monthly Salary ÷ 30) x 75 days
Years 6-10: (Monthly Salary ÷ 30) x 150 days
Total: 225 days = 7.5 months of salary
Understanding the indemnity calculation for 10 years helps employees plan for major life decisions, as this substantial benefit can serve as a financial foundation for career changes, entrepreneurship, or returning to your home country.
An indemnity (end-of-service benefit) in Kuwait is a mandatory payment employers must make to employees upon termination of their employment contract, calculated based on years of service and monthly salary according to Kuwait Labor Law. It serves as financial protection for workers and recognition of their service.
The calculation follows Kuwait Labor Law: For the first 5 years of service, you receive 15 days salary for each year. After 5 years, you receive 1 month salary for each additional year of service. The daily salary is calculated as monthly salary divided by 30 days.
For indemnity calculation for 1 year, you receive 15 days of your monthly salary. If your salary is 1,000 KWD per month, your daily rate is 33.333 KWD, and your indemnity would be 500 KWD (15 days x 33.333 KWD).
For indemnity calculation for 2 years, you receive 30 days total (15 days per year x 2 years). With a monthly salary of 1,000 KWD, this equals 1,000 KWD or exactly 1 month's salary.
The indemnity calculation for 3 years gives you 45 days total (15 days x 3 years). Based on a 1,000 KWD monthly salary, your indemnity would be 1,500 KWD (1.5 months of salary).
For indemnity calculation for 4 years of service, you receive 60 days of salary (15 days x 4 years). With 1,000 KWD monthly salary, this amounts to 2,000 KWD or 2 months' salary.
The indemnity calculation for 5 years is 75 days of salary (15 days per year x 5 years). For a 1,000 KWD monthly salary, you would receive 2,500 KWD, which equals 2.5 months of salary.
The basic salary is typically used for indemnity calculations. However, some allowances may be included depending on the employment contract and Kuwait Labor Law provisions. Transportation, housing, or other allowances may be included based on the contract terms. Consult with a legal advisor for specific cases.
This calculator is designed for full-time employment calculations. Part-time workers may have different calculation methods based on their actual working hours and contract terms. Please consult Kuwait Labor Law or a legal advisor for part-time employment indemnity calculations.
According to Kuwait Labor Law, employers must pay the end-of-service indemnity within 7 days of employment termination. If payment is delayed, employees can file a complaint with the Ministry of Social Affairs and Labor.
If you resign voluntarily before completing one full year of service, you are not entitled to any indemnity under Kuwait Labor Law. However, if you're terminated without cause, you may still be eligible for partial payment.
For indemnity calculation for 6 years, you get: First 5 years = 75 days (2.5 months), plus the 6th year = 30 days (1 month). Total: 105 days or 3.5 months salary. For 1,000 KWD salary, this equals 3,500 KWD.
The indemnity calculation for 7 years includes: First 5 years = 75 days, plus years 6-7 = 60 days (30 days each). Total: 135 days or 4.5 months. With 1,000 KWD monthly salary, you receive 4,500 KWD.
For indemnity calculation for 8 years: First 5 years = 75 days, plus 3 additional years = 90 days (30 days each year). Total: 165 days or 5.5 months salary, equaling 5,500 KWD for a 1,000 KWD salary.
The indemnity calculation for 9 years gives: First 5 years = 75 days, plus 4 additional years = 120 days. Total: 195 days or 6.5 months. For 1,000 KWD monthly salary, this equals 6,500 KWD in total indemnity.
For indemnity calculation for 10 years: First 5 years = 75 days (2.5 months), plus years 6-10 = 150 days (5 months). Total: 225 days or 7.5 months salary. With 1,000 KWD salary, you receive 7,500 KWD.
Yes, employees on limited contracts are entitled to full indemnity payment upon completion of their contract term or if terminated without cause before the contract expires.
Kuwait does not impose personal income tax on residents, so end-of-service indemnity payments are generally not taxable. However, tax obligations may vary for expatriates based on their home country's tax laws.
Employers cannot legally refuse to pay indemnity if you're entitled to it under Kuwait Labor Law. If an employer refuses payment, you can file a complaint with the labor authorities or pursue legal action.
You'll need your employment contract, salary certificates, and official employment termination letter. These documents help verify your service period and salary for accurate indemnity calculation.
Indemnity is calculated based on your final basic salary at the time of employment termination. Any salary increases during your employment will be reflected in the final calculation.
Each employment contract is calculated separately. If you've worked for multiple employers in Kuwait, you'll need to calculate indemnity for each position individually using their respective employment periods and salaries.
This Kuwait indemnity calculator provides estimates based on standard labor law provisions. Individual employment contracts may contain additional terms that affect indemnity calculations. For complex situations involving disciplinary actions, contract breaches, or disputes, consult with a qualified legal professional familiar with Kuwait Labor Law.
| Country | First 5 Years | After 5 Years | Minimum Service |
|---|---|---|---|
| Kuwait | 15 days per year | 30 days per year | 1 year |
| UAE | 21 days per year | 30 days per year | 1 year |
| Saudi Arabia | 15 days per year | 30 days per year | 2 years |
| Qatar | 21 days per year | 30 days per year | 1 year |
Note: This comparison shows standard provisions. Individual contracts and local amendments may vary. Kuwait's indemnity structure is competitive within the GCC region and provides solid protection for long-term employees.