How Kuwait gratuity is calculated
Your daily wage is your last monthly wage divided by 26. For each of the first 5 years you earn 15 days of wage; every year after that earns one full month. The total indemnity is capped at 18 months of wage. If your employer ends the contract you receive 100%. If you resign from an open-ended contract: under 3 years — nothing; 3 to 5 years — half; 5 to 10 years — two thirds; 10 years or more — the full amount.
Worked example
Monthly wage KWD 500, 6 years of service, resigned: daily wage = 500 ÷ 26 = KWD 19.231. First 5 years: 15 days × 5 × 19.231 = KWD 1,442.31. Year 6: one month = KWD 500. Full indemnity KWD 1,942.31. Resignation at 5–10 years pays two thirds: KWD 1,294.87.
Frequently asked questions
How is Kuwait indemnity calculated?
15 days of wage per year for the first 5 years (daily wage = monthly wage ÷ 26), then one month per year, capped at 18 months of wage.
Do I get indemnity if I resign before 3 years in Kuwait?
No. On an open-ended contract, resigning before completing 3 years means no indemnity. From 3–5 years you get half, 5–10 years two thirds, and after 10 years the full amount.
Is Kuwait indemnity on basic salary or total wage?
On your last wage as defined in Article 55 — basic salary plus regular allowances, commissions and recurring benefits.
What is the maximum Kuwait indemnity?
18 months of wage for monthly-paid workers (one year of wage for workers paid by day, week, hour or piece).
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