End-of-service calculator
A clearer estimate of your Kuwait indemnity. Start with your wage and service dates, then see how each part is calculated.
How this estimate works
For private-sector employment under Law No. 6 of 2010. This model does not assess other employment regimes or more favourable contractual benefits.
Wage basis
Articles 55 and 62 guide the wage components and averaging. Enter qualifying recurring remuneration; exclude repayment of actual work expenses and avoid double counting.
Monthly calculation
The model uses monthly qualifying wage ÷ 26 for the first-five-year daily rate. Article 51 does not itself prescribe a universal divisor of 26. Each year beyond five adds one monthly qualifying wage; the cap is 18 monthly wages.
Dates and partial years
Completed calendar anniversaries count as full years. Remaining days are divided by days in the next anniversary year. A 29 February anniversary is treated as 28 February in a non-leap year. These are disclosed calculation conventions, not certified statutory day-count rules.
Resignation
For an indefinite contract, ordinary resignation or the selected Article 42 scenario uses 0% below 3 years, 50% from 3 to under 5, two-thirds from 5 to under 10, and 100% at 10 years. The cap is applied before this percentage.
Separate settlement items
Unused annual leave compensation is shown separately using the balance you enter. Notice compensation, unpaid wages, loans and other balances are not added or deducted. Interrupted service, competing contractual benefits and disputed termination grounds need separate review.
Confirmed service exclusions
The single input represents unique, legally confirmed non-counting days. The model subtracts it once from gross elapsed days, then measures that reduced calendar period from the original start date for proportional amounts and service thresholds. It does not infer excluded periods or deduct paid leave, rest days, holidays or annual leave. This is a disclosed calculation convention, not a universal legal deduction rule.
Actual unused leave balance
Article 73 addresses payment for accumulated leave when the contract ends. The supplied Law 85/2017 replaces Article 70 with at least 30 paid working days and a six-month first-year threshold. This tool uses your actual balance, not an accrual estimate. Article 72 allows longer accumulation by mutual agreement; no absolute two-year cash-payout cap is imposed. The monthly daily rate remains the disclosed wage ÷ 26 assumption.
Calculator questions, answered
How is end-of-service indemnity calculated in Kuwait?
For the monthly-paid private-sector scenario, Article 51 describes 15 days’ wage per year for the first five years and one monthly wage per later year, subject to an 18-month wage cap and proportionate partial years. This calculator uses monthly qualifying wage ÷ 26 for its daily rate; that divisor and its anniversary-based day count are disclosed assumptions. Other pay arrangements need reviewed wage bases. PIFSS coverage requires a separate assessment: the displayed ordinary reference is not a certified employer-payable amount.
Original-text and separate amendment references: Article 51 · Law 85/2017 · Law 17/2018
Does ordinary resignation affect entitlement?
For an indefinite contract, the Article 53 scenario applies 0% below three years, 50% from three to under five, two-thirds from five to under ten, and 100% at ten years. This calculator applies that percentage to the capped reference using qualifying service. Fixed-term endings, disputed grounds and insured cases need individual review; the same formula does not determine every case.
Original-text and separate amendment references: Article 53
Are qualifying allowances included?
The wage basis may include qualifying recurring remuneration and eligible variable benefits, as described in Articles 55 and 62. Enter reviewed wage components, exclude reimbursement of actual work expenses, and do not count the same benefit twice. Variable and piece-rate averages need the relevant reference period; the calculator does not decide whether a disputed allowance qualifies.
Original-text and separate amendment references: Article 55 · Article 62
Is unused annual leave paid separately?
Yes, the calculator displays unused-leave compensation as a separate estimate using the actual remaining balance you enter, multiplied by the daily wage shown. Article 73 addresses compensation for accumulated leave on termination. This tool does not estimate accrual or certify the balance. Its combined figure covers indemnity and this leave estimate only, not a complete final settlement.
Original-text and separate amendment references: Article 73 · Law 85/2017
Are unpaid leave and absence days excluded from service?
Not automatically. Article 79 permits special unpaid leave but does not itself establish a universal service-exclusion rule. Enter only unique days already legally confirmed as non-counting service. The calculator deducts that total once; overlapping periods must be counted once in your records. Do not include paid leave, weekly rest days or public holidays. The reduced-calendar-period method and its effect on thresholds are explained above.
Original-text and separate amendment references: Article 79
Calculation basis and sources
Editorial calculation notes linked to historical source texts and separate amendments. This is not a certified current consolidation of Kuwaiti law.
Original 2010 provisions
- Article 37Original PDF · page 12 ↗
- Article 41Original PDF · page 13, 14 ↗
- Article 42Original PDF · page 14 ↗
- Article 47Original PDF · page 16 ↗
- Article 48Original PDF · page 16 ↗
- Article 51Original PDF · page 17 ↗
- Article 52Original PDF · page 17, 18 ↗
- Article 53Original PDF · page 18 ↗
- Article 55Original PDF · page 18, 19 ↗
- Article 62Original PDF · page 20, 21 ↗
- Article 67Original PDF · page 22 ↗
- Article 70Original PDF · page 23 ↗
- Article 72Original PDF · page 24 ↗
- Article 73Original PDF · page 24 ↗
- Article 79Original PDF · page 25 ↗
Article 51 and Article 70 amendment documents
- Law 85/2017 · Official Gazette — original publication ↗
- Law 17/2018 · Official Gazette — original publication ↗
Official judicial publication — PIFSS distinction ↗
The official compilation reproduces reasoning in appeals 10 and 12/2014, dated 25 December 2017, at PDF pages 134–135. Its present application after the later amendments has not been certified; that is why the insured branch is not automated.
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