Finance

Kuwait End-of-Service Gratuity (Indemnity) Calculator

Calculate your Kuwait end-of-service gratuity precisely under Articles 51 and 53 of Labor Law No. 6 of 2010 — 15 days per year for the first 5 years and a full month after, with the 1.5-year cap and the resignation reduction applied automatically.

Last monthly wage (including fixed allowances) Includes basic wage plus any fixed, recurring allowances — unlike the UAE, which calculates on basic wage only.

Start date

End date (or expected date)

Reason for termination

Enter your details and press "Calculate" to see your result here.

About this calculator

What the result means

Article 51 of Kuwait Labor Law No. 6 of 2010 grants an end-of-service gratuity: 15 days' wage for each of the first 5 years, then a full month's wage for each subsequent year, based on the last wage including fixed allowances, capped at 1.5 years' (18 months') wage for monthly-paid employees. The key difference from the UAE and Qatar: Article 53 still applies a graduated reduction on resignation: nothing for under 3 years of service, half the gratuity from 3 to under 5 years, two-thirds from 5 to under 10 years, and the full amount for 10+ years. This reduction never applies if the employer ends the contract for reasons other than disciplinary cause — in that case, the full gratuity is paid regardless of years of service.

Recommendation

Before submitting your resignation, calculate precisely how close you are to the nearest tier threshold (3, 5, or 10 years) — the difference between resigning just before versus just after that point by a few weeks could double your gratuity or forfeit it entirely. Make sure to use the wage including fixed allowances, not the basic wage alone, in the calculation. If you're paid daily, weekly, or by piece-rate, the legal cap differs (1 full year's wage instead of 1.5 years) — don't rely on this calculator's result in that case without manual adjustment.

Frequently asked questions

Are allowances included in the gratuity calculation in Kuwait?

Yes, unlike the UAE which calculates on basic wage only, Kuwait's wage basis includes fixed, recurring allowances when calculating the gratuity.

I resigned after 2 years — am I entitled to any gratuity?

No. Under Article 53, resigning before completing 3 years of service is not entitled to any end-of-service gratuity at all in Kuwait.

Is there a difference in the gratuity cap between monthly and daily wages?

Yes. The cap for monthly-paid employees is 1.5 years' (18 months') wage, while the cap for daily, weekly, piece-rate, or hourly-paid workers is only 1 full year's (12 months') wage — this calculator is designed for monthly-paid employees.

Does employer termination get the same resignation reduction?

No. Article 53's reduction applies exclusively to employee resignation. If the employer ends the contract for non-disciplinary reasons (like downsizing or project completion), the employee is entitled to the full gratuity regardless of years of service.

Are overtime pay or commissions included in the calculation?

No. The gratuity is calculated on the basic wage plus fixed, regular allowances only, excluding overtime pay, commissions, or non-recurring bonuses that vary from month to month.