Are you leaving a job in Kuwait? & Looking for a simple way to calculate your indemnity ?
You need to know your Labor indemnity rights! Many employees in Kuwait don’t know the full amount of their end-of-service benefits. Leaving behind significant sums of money simply due to a lack of information. Don’t let this happen to you!
I have made an Indemnity Calculator for Kuwait, they will help you How to Calculate End-of-Service Benefits as per Kuwait Labor Law.
Indemnitycalculator.com, simplifies this process, & easy-to-use which helps you to calculate your indemnity based on a few essential details and get what’s yours. Let’s get started!
Kuwait Indemnity Calculator
📊 Kuwait Indemnity Calculator
Get an Accurate Estimate of Your End-of-Service Benefits for Kuwait
📊 Kuwait Indemnity Calculator
Get an Accurate Estimate of Your End-of-Service Benefits for Kuwait
👉 Read This : How Kuwait’s Indemnity Cap Rule Works : What Every Worker Should Know
Key Features: Why This Indemnity Calculator Is Your Best Choice
We built our calculator with one goal in mind: to make your end-of-service calculation clear, accurate, and stress-free.
It’s not just another online tool—it’s designed as a trusted resource to help you understand your rights with confidence.
✨Updated for 2025: Our calculator reflects the current Kuwait Private Sector Labor Law (Law No. 6 of 2010, with updates including Law No. 85 of 2017). That means the results you see are based on the law as it stands today.
⚖️ Legally Accurate
Formulas: Every formula used in this tool is grounded in Article 51 of the
labor law. That includes the 15 days per year for the first 5 years and 30 days
per year for service beyond 5 years, plus the 18-month indemnity cap. Nothing
here is guesswork.
👍 Simple and User-Friendly:
Forget about complicated legal jargon. With just a few fields—your service
dates, monthly salary, unpaid leave, and unused leave—you get an instant
result.
⚙️ Customizable for Real Scenarios: Whether you’re resigning or being terminated, the calculator automatically adjusts your indemnity entitlement based on the rules set out in Article 53.
How to Use the Kuwait Indemnity Calculator
Here’s how to use it:
Step 1: Go to Kuwait labor indemnity calculation tool above
Step 2: Fill in the Details: Enter your date of service, monthly salary and leave days.
Step 3: Click the “Calculate indemnity" button Instantly will get two results:
Before Cap Rules → Your full entitlement without the 18-month limit.
After Cap Rules → The legally payable indemnity after applying the 18-month maximum and resignation rules.
Tips for Accuracy: Double-check your inputs to ensure you receive an accurate assessment and a reliable estimate of your labor indemnity entitlement.
What Is Labor Indemnity?
Labor indemnity, also called end-of-service benefits or gratuity pay, is an important part of Kuwait’s labor laws. It ensures that employees get fair compensation when they leave their job, whether they resign or are terminated.
This payment recognizes the time and effort you have given to your job and helps provide financial support as you move forward.
Who is entitled to indemnity?
In Kuwait, all private sector employees, whether Kuwaiti nationals or expatriates, are entitled to termination indemnity under the country’s labor laws.
This means if you are working in the private
sector with a valid employment visa, you have the right to receive compensation
when your job ends, regardless of whether you resigned or were terminated.
Employers in Kuwait are legally required to provide this
payment. Unfortunately, some may attempt to avoid their obligations, but this
is against the law. Importantly, contributions made by employers and employees
to the social security system are separate and must not be deducted from the
indemnity amount.
Calculating indemnity can seem complex because it involves multiple factors like the number of years you’ve worked, your basic salary, and specific rules based on how long you’ve been employed.
In this guide, we’ll explain these components in detail, helping you understand exactly how your labor indemnity is calculated and ensuring you claim what you’re owed.
Key Components of Labor Indemnity Calculation
Understanding how labor indemnity is calculated is essential to ensure you receive the full amount you are entitled to. Let’s break it down into simple steps.
The Legal Nitty-Gritty: How the Calculation Works
First 5 Years → 15 days’ salary per year.
Beyond 5 Years → 30 days’ salary per year.
Daily Wage → Salary ÷ 26 (law assumes a 6-day workweek).
Partial Years Count → Service is calculated down to the exact month and day.
Cap Rule → Maximum indemnity cannot exceed 18 months’ salary.
Resignation vs. Termination: The reason for leaving your job affects the indemnity calculation.
Your gross indemnity changes depending on how your service ends:
Case 1: Termination by Employer
You are entitled to 100% of the calculated indemnity (subject to the cap).
Case 2: Resignation by Employee
Less than 3 years → 0%
3 to < 5 years → 50%
5 to < 10 years → 66.67%
10+ years → 100%
When Are You Eligible?
Length of Employment: If you work less than 5 years and resign, you may get part of the indemnity. If you work more than 5 years, you’re entitled to full indemnity in most cases.
Terminated by Employer: If your employer ends your contract, you’re entitled to the full amount of indemnity.
Resignation: If you resign before 5 years, you may get a reduced amount. After 5 years, you are entitled to full indemnity even if you resign.
Worker’s Death or
Disability: If a worker passes away or becomes permanently disabled, the
full indemnity is paid to them or their family.
Employer’s Bankruptcy
or Closure: If the company shuts down or goes bankrupt, employees are
entitled to indemnity.
Extended Sick Leave:
If an employee cannot return to work after using up all their sick leave, they
can claim indemnity.
Marriage for Female
Employees: Female employees who leave their job within one year of getting
married can claim full indemnity.
Employer Misconduct:
If an employer breaks the terms of the contract, the employee can leave and
claim full indemnity.
Knowing these rules helps you protect your rights and ensures you don’t miss out on the money you’ve earned!
Kuwait Indemnity Legalities As Per Labor Law
The Kuwait Indemnity calculator is for estimation purposes only, please be aware of the indemnity legal framework in Kuwait.
Kuwaiti Labor Law: Read the relevant articles of the “Kuwaiti labor law” to know your rights and employer’s obligations. This includes notice period formalities and report details.
Legal Notes: Different employment situations (fixed term contracts, part-time work etc.) have different legal notes regarding indemnity. For example indemnity calculation is different for female employee compared to other employees.
Dispute Resolution: In case of disputes or problems between employer and employee try to resolve it amicably with your employer. If that doesn’t work, you can go for mediation through labor union or file a complaint with Ministry of Social Affairs and Labor.
Legal Advice: In case of complex situations or need expert opinion, don’t hesitate to consult a lawyer or legal expert who specializes in labor law. They can provide legal services and personalized advice on your case.
How you get Max Indemnity for Service: Tips and Tricks
Here are some proactive steps to get your full indemnity:
Know Your Contract (Company Contract): Read your employment contract for any indemnity related clauses. This includes termination of employment and any other benefits or allowances you are entitled to.
Keep Records (Communication Records): Keep record of your employment history, salary slips and any other relevant documents including communication with your employer.
Negotiate (if possible): In some cases you can negotiate your indemnity with your employer especially if you are leaving on good terms.
Stay Informed: Keep yourself updated with any changes in labor laws or regulations that may affect your indemnity. You can consult a lawyer or refer to official government sources for the latest information.
Remember: Knowledge is power! By knowing your rights and being proactive you can get your full labor indemnity in Kuwait. Use our Kuwait Indemnity Calculator as a starting point and don’t hesitate to seek professional advice when needed.
are Kuwaiti or expat, knowing the Kuwaiti labor law, your company contract and the factors that affect indemnity calculation is the key to get your maximum entitlement.
Conclusion
Labor indemnity calculation in Kuwait is a critical aspect of ensuring employees receive fair compensation upon leaving their employment. Understanding the nuances of this calculation is essential for both employers and employees to ensure compliance with Kuwaiti labor law.
Furthermore, Changes in Labor law and Regulations may impact on the actual calculation by your HR/Company .
We strongly recommended to consulting the Legal expert or labor
authority to obtain an accurate and personalized assessment of your labor
indemnity entitlement. The information provided here is not intended to create
an attorney-client relationship, and no legal services or advice are being
offered through this tool.
By using this labor indemnity calculation tool, you acknowledge and agree that the results are estimates and may not reflect the actual indemnity you are entitled to under Kuwaiti labor law. You should always seek professional legal advice when dealing with labor-related matters.
Frequently Asked Questions (FAQ)
1. What is indemnity in Kuwait?
It’s your end-of-service benefit, calculated under Article 51 of the labor law.
2. Does this apply to government jobs?
No. This tool is for private sector employees only.
3. Is my basic salary enough for calculation?
No. You must use your total salary including allowances, as required by Article 55.
4. What if I resign before 3 years?
You don’t qualify for indemnity.
5. What is the indemnity cap?
The maximum payout is 18 months’ salary.
6. Can employers deduct social security contributions?
No. It is illegal for employers to reduce indemnity by their contributions.
7. Do unused leave days increase indemnity?
Yes. Cash for unused leave is added on top of your indemnity.
8. How is unpaid leave handled?
Unpaid leave days are deducted from your service period.
9. Is indemnity taxable in Kuwait?
No. Kuwait does not tax salaries or indemnity payments.
10. What if my employer’s calculation is lower?
You can file a complaint with the Public Authority for Manpower (PAM) within one year of contract termination.
Disclaimer
Kuwait Labor Indemnity Calculator provided on this website is intended for general informational purposes only. It is designed to give you an estimate of potential indemnity based on Kuwaiti labor law. Please be aware that the actual indemnity you may be entitled to can vary significantly based on individual circumstances, employment contracts, and applicable regulations.
Kuwait Indemnity Calculator is an estimate and should not be considered as a substitute for legal advice or consultation with a qualified attorney. Labor indemnity calculations can be complex and may require a detailed review of your specific employment history and contract terms.