The formula in Article 51
For workers paid monthly, Article 51 of Law No. 6 of 2010 sets the indemnity at 15 days’ remuneration for each of the first five years of service and one month’s remuneration for each year after that. Fractions of a year count in proportion. The total is capped at one and a half years’ remuneration (18 months).
The indemnity is calculated on your last remuneration – the salary you were actually receiving, not only the basic salary.
Why the daily wage is your salary divided by 26
Kuwaiti practice treats a working month as 26 days when converting a monthly salary into a daily wage for indemnity. So “15 days” for each of the first five years means 15 ÷ 26 of a month’s salary – a little more than half a month. From the sixth year, each year earns a full month’s salary.
Example: a monthly salary of KWD 520 gives a daily wage of KWD 20 (520 ÷ 26).
Daily wage: KWD 20.000 (monthly ÷ 26)
- 4 yrs × 15 days/yrKWD 1,200.000
- Estimated entitlementKWD 1,200.000
Daily wage: KWD 34.615 (monthly ÷ 26)
- 5 yrs × 15 days/yrKWD 2,596.154
- 7 yrs × 26 days/yrKWD 6,300.000
- Estimated entitlementKWD 8,896.154
What happens if you resign (Article 53)
For indefinite (open-ended) contracts, a worker who resigns receives only part of the indemnity, depending on service:
| Service when resigning | Share of the indemnity |
|---|---|
| Less than 3 years | Nothing |
| 3 to less than 5 years | Half |
| 5 to less than 10 years | Two thirds |
| 10 years or more | The full indemnity |
Daily wage: KWD 20.000 (monthly ÷ 26)
- 4 yrs × 15 days/yrKWD 1,200.000
- Total before adjustmentsKWD 1,200.000
- Resignation share: half× 0.5
- Estimated entitlementKWD 600.000
These reductions apply to resignation from an indefinite contract. When a fixed-term contract simply expires, or the employer ends the contract, the full indemnity is due.
When the indemnity can be lost
Article 41 allows an employer to dismiss a worker for serious misconduct listed in the law without notice or indemnity. Ordinary termination by the employer does not reduce the indemnity.
Daily, hourly and piece-rate workers
Workers paid by the day, hour or piece have a lower scale: 10 days’ wage for each of the first five years, then 15 days per year, capped at one year’s wage. Our calculator covers monthly-paid workers, who are the large majority.
Domestic workers and government employees
- Domestic workers (Article 20 visas) are covered by Law No. 68 of 2015, which gives one month’s wage for each year of service at the end of the contract.
- Non-Kuwaitis in ministries and government bodies follow their contracts and Civil Service Commission rules; Kuwaitis are covered by the social security pension system (PIFSS).
Before you resign: three things to check
- How close are you to 3, 5 or 10 years? Crossing a threshold changes your share from nothing to half, from half to two thirds, or to the full amount.
- Is your contract indefinite or fixed-term? The reductions apply to resignations from indefinite contracts.
- Is the salary used for the calculation your full current salary?
Disputes are handled by the Public Authority for Manpower (PAM), which also offers complaint services online.
Calculate your Kuwait indemnity →
Questions
How much indemnity for 5 years in Kuwait?
75 days of wage (5 × 15 days), with the daily wage being your monthly salary ÷ 26 – roughly 2.9 months’ salary if the employer ends the contract.
Is there a maximum indemnity in Kuwait?
Yes – one and a half years’ remuneration (18 months).
I resign after 2 years. Do I get anything?
Not on an indefinite contract – the minimum for a resignation share is 3 years.