How Kuwait Indemnity is Calculated
Kuwait's Labour Law (Law No. 6 of 2010), Article 51, provides for an end of service indemnity for all workers in the private sector. A key distinction from UAE and Saudi is that Kuwait uses a 26-day working month to calculate the daily rate.
The Formula
- Day rate = Basic monthly salary ÷ 26
- First 5 years: 15 days' pay per year
- Each year beyond 5: 30 days' pay per year
- Apply 50% reduction for resignations under 10 years
Resignation Rules
| Service Period | Terminated | Resigned |
|---|---|---|
| Under 1 year | No indemnity | No indemnity |
| 1–10 years | Full indemnity | 50% of indemnity |
| 10+ years | Full indemnity | Full indemnity |
Frequently Asked Questions
Kuwait labour law specifically designates 26 as the number of working days in a month. This is different from UAE (30 days) and Saudi Arabia (monthly salary basis). Using 26 days results in a slightly higher daily rate than dividing by 30.
Domestic workers (housemaids, drivers, etc.) in Kuwait are covered under a separate law — Law No. 68 of 2015 for Domestic Workers. The indemnity rules differ. This calculator applies to private sector employees under Law No. 6 of 2010.