Kuwait Indemnity Calculator

حاسبة مكافأة نهاية الخدمة - الكويت

Calculate your end-of-service indemnity in Kuwait instantly. Free, accurate, and based on current Kuwait Labor Law.

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How to Calculate Your End of Service Indemnity

An 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.

✓ First 5 Years

15 days salary for each year of service

✓ After 5 Years

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

Indemnity Calculation by Years of Service

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)

💡 Understanding Your Calculation

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 Labor Law Indemnity Requirements

Legal Framework

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.

Who is Eligible?

  • All private sector employees in Kuwait
  • Workers with unlimited contracts
  • Limited contract employees upon completion
  • Employees terminated without cause
  • Workers who resign after 3+ years of service

Calculation Methodology

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.

Payment Timeline

  • Must be paid within 7 days of employment termination
  • Calculated from the last working day
  • Based on final basic salary amount
  • Includes any contractual salary increases
  • Excludes overtime and bonuses (unless contractually specified)

How Our Kuwait Gratuity Calculator Works

1

Enter Employment Dates

Input your exact start and end dates of employment in Kuwait. Our calculator automatically calculates your total service period.

2

Input Monthly Salary

Enter your current basic monthly salary in Kuwaiti Dinars (KWD). Use your base salary excluding allowances and bonuses.

3

Get Instant Results

Receive immediate calculations showing your total indemnity amount with a detailed breakdown of the computation.

Benefits of Using Our Indemnity Calculator

Accurate Kuwait Labor Law Compliance

Our calculator follows the exact provisions of Kuwait Labor Law No. 6 of 2010, ensuring precise indemnity calculations.

Instant Calculations

Get immediate results without waiting. Our real-time calculator provides instant feedback as you input your employment details.

📱

Mobile-Friendly Design

Access the calculator from any device - smartphone, tablet, or desktop. Optimized for Kuwait's mobile workforce.

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Secure & Private

Your employment data is processed locally in your browser. No personal information is stored or transmitted to our servers.

End-of-Service Benefits by Industry in Kuwait

Oil & Gas Sector

Kuwait's oil industry employees are subject to standard labor law indemnity calculations. Additional benefits may be provided through company policies.

Banking & Finance

Financial sector employees in Kuwait receive standard indemnity plus potential contractual bonuses. Some banks offer enhanced gratuity packages.

Healthcare & Education

Healthcare and education professionals follow standard Kuwait labor law calculations with possible institutional variations.

Kuwait Labor Law Indemnity Formula

Your Indemnity Calculation

Total Service
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Years
Daily Salary
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KWD
Total Indemnity
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KWD

Calculation Breakdown:

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.

Indemnity Calculator by Years

Quick Indemnity Calculator by Years

Calculate your end-of-service indemnity based on specific years of service. Simply select your years and enter your salary for instant results.

Your Indemnity for

Monthly Salary
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KWD
Total Indemnity
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KWD

Calculation Details:

💡 This quick calculator is perfect for comparing indemnity amounts for different years of service.

Indemnity Calculation for 1 Year

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.

How It Works

According to Kuwait Labor Law, the indemnity calculation for 1 year is straightforward: you receive 15 days of your basic monthly salary.

Calculation Formula:

Indemnity = (Monthly Salary ÷ 30 days) x 15 days

Example Calculations:

  • Salary 500 KWD: (500 ÷ 30) x 15 = 250 KWD
  • Salary 800 KWD: (800 ÷ 30) x 15 = 400 KWD
  • Salary 1,000 KWD: (1,000 ÷ 30) x 15 = 500 KWD
  • Salary 1,500 KWD: (1,500 ÷ 30) x 15 = 750 KWD
  • Salary 2,000 KWD: (2,000 ÷ 30) x 15 = 1,000 KWD

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.

Indemnity Calculation for 2 Years

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.

Calculation Details

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.

Calculation Formula:

Indemnity = (Monthly Salary ÷ 30 days) x 30 days = Monthly Salary x 1

Example Calculations:

  • Salary 600 KWD: 600 x 1 = 600 KWD (1 month)
  • Salary 900 KWD: 900 x 1 = 900 KWD (1 month)
  • Salary 1,200 KWD: 1,200 x 1 = 1,200 KWD (1 month)
  • Salary 2,000 KWD: 2,000 x 1 = 2,000 KWD (1 month)

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.

Indemnity Calculation for 3 Years

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.

Three-Year Calculation

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.

Calculation Formula:

Indemnity = (Monthly Salary ÷ 30 days) x 45 days = Monthly Salary x 1.5

Example Calculations:

  • Salary 700 KWD: 700 x 1.5 = 1,050 KWD (1.5 months)
  • Salary 1,000 KWD: 1,000 x 1.5 = 1,500 KWD (1.5 months)
  • Salary 1,300 KWD: 1,300 x 1.5 = 1,950 KWD (1.5 months)
  • Salary 1,800 KWD: 1,800 x 1.5 = 2,700 KWD (1.5 months)
Important: After completing 3 years of service, if you resign voluntarily, you become entitled to full indemnity payment under Kuwait Labor Law.

Indemnity Calculation for 4 Years

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.

Four-Year Indemnity

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.

Calculation Formula:

Indemnity = (Monthly Salary ÷ 30 days) x 60 days = Monthly Salary x 2

Example Calculations:

  • Salary 650 KWD: 650 x 2 = 1,300 KWD (2 months)
  • Salary 950 KWD: 950 x 2 = 1,900 KWD (2 months)
  • Salary 1,400 KWD: 1,400 x 2 = 2,800 KWD (2 months)
  • Salary 2,200 KWD: 2,200 x 2 = 4,400 KWD (2 months)

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.

Indemnity Calculation for 5 Years

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.

Five-Year Milestone

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.

Calculation Formula:

Indemnity = (Monthly Salary ÷ 30 days) x 75 days = Monthly Salary x 2.5

Example Calculations:

  • Salary 800 KWD: 800 x 2.5 = 2,000 KWD (2.5 months)
  • Salary 1,100 KWD: 1,100 x 2.5 = 2,750 KWD (2.5 months)
  • Salary 1,500 KWD: 1,500 x 2.5 = 3,750 KWD (2.5 months)
  • Salary 2,500 KWD: 2,500 x 2.5 = 6,250 KWD (2.5 months)
Important Change After 5 Years: The indemnity calculation for 5 years is the last time you receive 15 days per year. After completing 5 years, you'll receive 30 days (1 full month) for each additional year of service!

Indemnity Calculation for 6 Years

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.

Six-Year Enhanced Calculation

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.

Calculation Formula:

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

Example Calculations:

  • Salary 850 KWD: 850 x 3.5 = 2,975 KWD (3.5 months)
  • Salary 1,200 KWD: 1,200 x 3.5 = 4,200 KWD (3.5 months)
  • Salary 1,600 KWD: 1,600 x 3.5 = 5,600 KWD (3.5 months)
  • Salary 2,300 KWD: 2,300 x 3.5 = 8,050 KWD (3.5 months)

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.

Indemnity Calculation for 7 Years

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.

Seven-Year Calculation Breakdown

The indemnity calculation for 7 years includes 75 days for the first 5 years plus 60 days for years 6-7, totaling 135 days.

Calculation Formula:

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

Example Calculations:

  • Salary 900 KWD: 900 x 4.5 = 4,050 KWD (4.5 months)
  • Salary 1,250 KWD: 1,250 x 4.5 = 5,625 KWD (4.5 months)
  • Salary 1,700 KWD: 1,700 x 4.5 = 7,650 KWD (4.5 months)
  • Salary 2,400 KWD: 2,400 x 4.5 = 10,800 KWD (4.5 months)

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.

Indemnity Calculation for 8 Years

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.

Eight-Year Indemnity Structure

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).

Calculation Formula:

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

Example Calculations:

  • Salary 1,000 KWD: 1,000 x 5.5 = 5,500 KWD (5.5 months)
  • Salary 1,350 KWD: 1,350 x 5.5 = 7,425 KWD (5.5 months)
  • Salary 1,800 KWD: 1,800 x 5.5 = 9,900 KWD (5.5 months)
  • Salary 2,600 KWD: 2,600 x 5.5 = 14,300 KWD (5.5 months)

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.

Indemnity Calculation for 9 Years

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.

Nine-Year Benefit Calculation

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.

Calculation Formula:

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

Example Calculations:

  • Salary 1,050 KWD: 1,050 x 6.5 = 6,825 KWD (6.5 months)
  • Salary 1,400 KWD: 1,400 x 6.5 = 9,100 KWD (6.5 months)
  • Salary 1,900 KWD: 1,900 x 6.5 = 12,350 KWD (6.5 months)
  • Salary 2,800 KWD: 2,800 x 6.5 = 18,200 KWD (6.5 months)

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.

Indemnity Calculation for 10 Years

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.

Ten-Year Milestone Calculation

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.

Calculation Formula:

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

Example Calculations:

  • Salary 1,100 KWD: 1,100 x 7.5 = 8,250 KWD (7.5 months)
  • Salary 1,500 KWD: 1,500 x 7.5 = 11,250 KWD (7.5 months)
  • Salary 2,000 KWD: 2,000 x 7.5 = 15,000 KWD (7.5 months)
  • Salary 3,000 KWD: 3,000 x 7.5 = 22,500 KWD (7.5 months)
Decade Achievement: The indemnity calculation for 10 years provides three-quarters of a year's salary, making it a significant financial asset and reward for your decade-long commitment.

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.

Frequently Asked Questions About Kuwait Indemnity

What is an indemnity in Kuwait?

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.

How is end-of-service benefit calculated?

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.

How much is the indemnity calculation for 1 year of service?

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).

What is the indemnity calculation for 2 years?

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.

How to calculate indemnity for 3 years in Kuwait?

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).

What is the indemnity calculation for 4 years?

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.

How much is the indemnity calculation for 5 years?

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.

Does it include allowances?

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.

Can I use this calculator for part-time jobs?

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.

When do I receive my indemnity payment?

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.

What if I resign before completing one year?

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.

What is the indemnity calculation for 6 years?

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.

How to calculate indemnity for 7 years in Kuwait?

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.

What is the indemnity calculation for 8 years?

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.

How much is the indemnity calculation for 9 years?

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.

What is the indemnity calculation for 10 years?

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.

Do limited contract employees get indemnity?

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.

Is indemnity taxable in Kuwait?

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.

Can my employer refuse to pay indemnity?

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.

What documents do I need for indemnity calculation?

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.

How does indemnity work for salary increases?

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.

Can I calculate indemnity for multiple jobs?

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.

Kuwait Labor Law Resources and References

Official Government Sources

Key Legal Points

  • ✅ Indemnity is mandatory for all private sector employees
  • ✅ Payment must be made within 7 days of termination
  • ✅ Calculation based on final basic salary amount
  • ✅ Progressive structure rewards long-term service
  • ✅ Applies to both unlimited and limited contracts

Important Legal Notice

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.

Kuwait vs. Other GCC Countries: Indemnity Comparison

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.