Leaving a job in Kuwait? Under Article 51 of Labor Law No. 6 of 2010, your end-of-service indemnity is 15 days' pay per year for the first 5 years, then 30 days' pay per year, capped at 18 months' wage — with the daily wage calculated as monthly wage ÷ 26. If you resigned, Article 53 reduces the indemnity, so select how the employment ended.
How the formula works
Article 51 formula: 15 days' pay × first 5 years + 30 days' pay × each further year, where daily wage = monthly wage ÷ 26. The total is capped at 18 months' wage.
| Service at resignation | Share of full award (Art. 53) |
|---|
| Under 3 years | Nothing |
| 3–5 years | One-half |
| 5–10 years | Two-thirds |
| 10+ years | Full |
Worked example
A wage of KWD 1,500, from January 2018 to January 2026 (8.01 years), on contract completion: daily wage 1,500 ÷ 26 = 57.69 KWD; 57.69 × (15 × 5 + 30 × 3.01) = 9,528.71 KWD (under the 18-month cap of 27,000 KWD). The same service on resignation would pay two-thirds: 6,352.48 KWD.
Common mistakes
1. Dividing by 30 instead of 26. Kuwait's daily wage is monthly ÷ 26, not 30 — a small difference that compounds over years.
2. Forgetting the 18-month cap. Very long service stops accruing at 18 months' wage, however many years you worked.
Minimum 1 year of continuous service is required. Termination by the employer (or contract expiry) always pays the full calculated amount.
Tax: Kuwait levies no personal income tax, so your gratuity is paid in full. Gratuity applies to all private-sector employees regardless of nationality.
Gratuity FAQs
How is end-of-service indemnity calculated in Kuwait?
Under Article 51 of Labor Law No. 6 of 2010: 15 days' pay per year for the first 5 years, then 30 days' pay per year, capped at 18 months' wage. Daily wage = monthly wage ÷ 26. On resignation (Article 53): nothing under 3 years, half for 3–5 years, two-thirds for 5–10 years, full at 10+ years.
Does resigning reduce my indemnity in Kuwait?
Yes. Under Article 53, resignation pays nothing under 3 years of service, one-half for 3–5 years, two-thirds for 5–10 years, and the full award at 10+ years. Contract completion or termination by the employer always pays the full award.
When must my employer pay indemnity in Kuwait?
Within two weeks of contract end.
Sources & verification
Formula from: Kuwait MOSAL — Labor Law No. 6 of 2010, Articles 51–53.
Last verified: 23 October 2026. Estimate only — confirm your exact entitlement with HR or the labour authority.
When must your employer pay it? Within two weeks of contract end.
If your employer refuses to pay: Raise it with the Kuwait Ministry of Social Affairs and Labour (MOSAL / PAM). Keep your contract and salary slips.