Navigating the end of your employment in Kuwait can be a stressful time. Amid planning your next career move, the single biggest question for many private-sector employees, especially expatriates, is: “How much is my end-of-service indemnity?” The calculation seems shrouded in complex legal rules, and it’s easy to feel uncertain whether you’re receiving your full, rightful payment.

You’ve worked hard for your money. You deserve to get every dinar you are owed.

This is where our guide and calculator come in. We’ve created the most comprehensive and easy-to-use Kuwait Indemnity Calculator available online. This guide will not only walk you through how to use it but will also empower you with a clear understanding of your rights under Kuwait’s Private Sector Labor Law (Law No. 6 of 2010).¹

Key Features: Why Our Kuwait Indemnity Calculator is Your Best Choice

We designed our calculator to be more than just a simple tool. It’s a reliable resource built to give you confidence and clarity.

• Updated for 2025: Our calculator is fully compliant with the latest amendments to the Kuwaiti Labor Law, including the crucial changes from Law No. 85 of 2017, ensuring your estimate is based on current regulations.³
  
• Legally Accurate Formulas: The calculations are not guesswork. They are built directly upon the formulas outlined in Article 51 of the labor law, ensuring a precise estimate of your gross indemnity.¹
  
• User-Friendly Interface: No legal jargon or confusing fields. Just four simple inputs—your start and end dates, your salary, and any unpaid leave to get an instant, clear result.³
  
• Customizable for Your Scenario: The calculator provides the essential gross indemnity figure, which you can then easily adjust for your specific situation, whether it’s a resignation or a termination by your employer.

How to Use the Kuwait Indemnity Calculator: A 4-Step Guide

Getting your indemnity estimate is simple. Follow these four steps for an accurate result.

Step 1: Enter Your Service Dates

Input your official Start Date and End Date of employment. The calculator will automatically determine the total years, months, and days of your service period. Remember, your notice period counts towards your total service.⁸

Step 2: Input Your Correct Monthly Salary (This is Crucial!)

This is the most important step. Do not enter only your basic salary. According to Article 55 of the Kuwaiti Labor Law, your indemnity must be calculated on your last total remuneration.⁸

Your total remuneration includes:

• Your Basic Salary
• All regular, recurring allowances (Housing, Transport, Phone, etc.) ⁹
• Any other periodic cash benefits or bonuses you receive ⁸

In simple terms, enter the total monthly salary that is transferred to your bank account. Using only your basic salary is an illegal practice by some companies that can cut your rightful payment in half.⁹

Step 3: Add Any Unpaid Leave

If you have taken any leave without pay during your service, enter the total number of days in the Unpaid Leave Days field. The law states that periods of unpaid leave are not counted towards your service period, so including them ensures your calculation is precise.⁸

Step 4: Click “Calculate”

The calculator will instantly provide your estimated Total Gross Indemnity in Kuwaiti Dinar. This is the foundational amount you are owed before considering the reason for your departure.

Understanding Your Result: Resignation vs. Termination

The amount you see on the calculator is your gross indemnity. The final amount you are legally entitled to receive depends on whether you resigned or were terminated. This is governed by Article 53 of the law.¹³

Case 1: Termination by Employer

If your employer terminates your contract (and not for a serious violation under Article 41), you are entitled to 100% of the calculated indemnity amount.⁶

Case 2: Resignation by Employee

If you resign, the percentage of the indemnity you receive depends on your total length of service. Use this table to find your entitlement:

Your Length of Service When You Resign	Percentage of Total Indemnity You Receive
Less than 3 years	0% (No indemnity) 14
3 years to less than 5 years	50% (Half of the calculated amount) 17
5 years to less than 10 years	66.67% (Two-thirds of the calculated amount) 8
10 years or more	100% (The full calculated amount) 14

The Legal Nitty-Gritty: How the Calculation Works

For those who want to understand the mechanics behind the calculator, here is how the law breaks it down for monthly-paid employees:

1. The Two-Tier System: Your service is split into two periods.
   • For each of your first five years of service, you get 15 days’ pay.¹
   • For every year after the fifth year, you get a full month’s pay (30 days).¹
     
2. The 26-Day Month: To calculate a “day’s pay,” your total monthly remuneration is divided by 26. This is based on Article 67 of the law, which defines the standard work week as 6 days (48 hours), even if your company gives you a 2-day weekend.¹⁸
   
3. Pro-Rata for Partial Years: The law ensures you are paid for every day of service. The calculator automatically calculates the indemnity for partial years, months, and days on a pro-rata basis.¹⁹

Frequently Asked Questions (FAQ)

Q: What if my employer’s calculation is much lower than the calculator’s?

A: First, ensure you have used your total remuneration and not just your basic salary. If the amount is still incorrect, you have the right to file a complaint with the Public Authority for Manpower (PAM) or the Ministry of Social Affairs and Labor.1

Q: Is there a time limit to claim my indemnity?

A: Yes. You must file a claim for your labor dues within one year of your employment termination date. After this period, you may lose your right to claim.1

Q: What about my unused annual leave?

A: Your payment for unused paid leave is a separate entitlement. It is paid in addition to your indemnity and is not part of this calculation.1

Q: Is there a maximum limit on the indemnity payout?

A: Yes. For monthly-paid employees, the total indemnity amount cannot exceed the equivalent of one and a half years’ (18 months) remuneration.17

Q: Can my employer deduct the social security payments they made for me?

A: No. A key update to the law in 2017 (Law No. 85) made it illegal for employers to deduct their social security contributions from your final indemnity payment.4 You are entitled to the full amount.

Q: Does this apply to domestic workers on Visa 20?

A: No. Domestic workers are covered by a separate law (Domestic Labor Law of 2015). Their indemnity is simpler: one month’s salary for each year of service, claimable for service from 2017 onwards.20

Conclusion: Empower Yourself with Knowledge

Calculating your end-of-service indemnity shouldn’t be a mystery. By understanding the key principles—calculating on your total salary and knowing how resignation vs. termination affects your payout—you can approach your final settlement with confidence.

Use our Kuwait Indemnity Calculator as your first step to ensure you are being compensated fairly for your years of hard work.

Disclaimer: This article and the calculator are for informational purposes only and do not constitute legal advice. They are designed to provide an accurate estimate based on the Kuwaiti Labor Law. Your final indemnity may vary based on your specific contract and circumstances. For any official dispute or a binding calculation, it is strongly recommended to consult with a legal expert or the Public Authority for Manpower.³