Kuwait Indemnity Calculator 2025: Don’t Miss Your Right

Kuwaiti Labor Law No. 6 of 2010 (concerning employment in the private sector in Kuwait) outlines all cases in which a private sector worker is entitled to end-of-service indemnity. The Labor Law also outlines cases in which an employee is denied an end-of-service indemnity, the value of this indemnity, and the procedures for doing so.

Kuwait Indemnity Calculator

You can find out Kuwait Indemnity Calculator for all worker in private sector in Kuwait below:

How to use Kuwait Indemnity Calculator

You can use Kuwait Indemnity Calculator by following these steps:

• Go to Kuwait Indemnity Calculator service.
• Add a Start Date of work in private sector using the calendar icon (in day and month and year).
• Add a End Date of work in private sector using the calendar icon (in day and month and year).
• Add your Monthly Salary value in the suitable field.
• Add the number of Unpaid Leave Days in the suitable field.
• Click on the “Calculate Indemnity” icon to calculate the Indemnity.

Overview of Kuwait Indemnity Calculation

Kuwait Indemnity Calculation for employees in the private sector is calculated as follows:

• The employee get Indemnity for years of service and for fractions of a year.
• The employee’s Debts are deducted from his Indemnity.
• The employee receives the full Indemnity upon completion of his or her service in the private sector, without deducting the amounts due for social insurance contributions.

Calculate Your Kuwait Indemnity

Expatriates working in the private sector in Kuwait are entitled to an end-of-service indemnity, the value of which varies depending on the number of years of service with the employer and the approved wage payment system (monthly, hourly, daily, weekly, or piecework). This indemnity is paid at the end of the expatriate’s service, in accordance with a set of conditions and procedures. However, expatriates are deprived of this indemnity in certain cases specified by Kuwaiti Labor Law.

Calculate Your Kuwait Indemnity: Daily Wage

Private sector workers on daily, weekly, or piece-rate wages are entitled to the following:

• The value of the end of service Indemnity for the first five years of service is 10 days’ salary x 5.
• The value of the end of service Indemnity for years after the first five is 15 days’ salary x the number of years of service.
• The value of the end of service Indemnity for daily wageworkers does not exceed one full year’s salary.

Calculate Your Kuwait Indemnity: Monthly Salary System

For workers receiving monthly salaries in the private sector, the end of service Indemnity value is as follows:

• The end of service indemnity value for the first five years of service is 15 days’ salary x 5.
• The end of service indemnity value for years after the first five is one month’s salary x the number of years of service.
• The end of service indemnity value for private sector employees under the monthly salary system does not exceed one and a half years’ salary.

Calculate Your Kuwait Indemnity upon resignation

You can find out how to Calculate Your Kuwait Indemnity upon resignation by the following table:

Example Based on Indemnity Laws & Calculations: Daily Wage

Let’s say Khaled worked for a company in Kuwait for 7 years, 3 months, 10 days. His monthly salary is 1,560 KD in Daily Wage (i.e. 60 KD daily). How much is Indemnity worth?

• Daily Salary = 1,560 KD ÷ 26 Days = 60 KD
• Indemnity for the First Five Years = (60 KD ×10) × 5 Years = 3000 KD
• Indemnity for Years Exceeding Five = (60 KD ×15) × 2 Years = 1800 KD
• Monthly Indemnity = (3 Months ÷ 12 Months) × (60 KD × 15) = 225 KD
• Daily Indemnity = (10 Days ÷ 365 Days) × (60 KD × 15) = 25 KD
• Total Indemnity = 3000 KD + 1800 KD + 225 KD + 25 KD = 5050 KD

Example Based on Indemnity Laws & Calculations: Weekly Wage

Let’s say Sally worked for a company in Kuwait for 8 years, 2 months, 20 days. Her monthly salary is 1,300 KD in weekly Wage. How much is Indemnity worth?

• Daily Salary = 1,300 KD ÷ 26 Days = 50 KD
• Indemnity for the First Five Years = (50 KD × 10) × 5 Years = 2500 KD
• Indemnity for Years Exceeding Five = (50 KD × 15) × 3 Years = 2250 KD
• Monthly Indemnity = (2 Months ÷ 12 Months) × (50 KD × 15) = 125 KD
• Daily Indemnity = (20 Days ÷ 365 Days) × (50 KD × 15) = 41 KD
• Total Indemnity = 2500 KD + 2250 KD + 125 KD + 41 KD = 4916 KD

Example Based on Indemnity Laws & Calculations: Monthly Wage

Let’s say Mohammad worked for a company in Kuwait for 8 years, 6 months, 7 days. His monthly salary is 1430 KD in Monthly Wage. How much is Indemnity worth?

• Daily Salary = 1430 KD ÷ 26 Days = 55 KD
• Indemnity for the First Five Years = (55 KD × 15) × 5 Years = 4125 KD
• Indemnity for Years Exceeding Five = (1430 KD) × 3 Years = 4290 KD
• Monthly Indemnity = (6 Months ÷ 12 Months) × (1430) KD = 715 KD.
• Daily Indemnity = (7 Days ÷ 365 Days) × (1430 KD) = 27 KD.
• Total Indemnity = 4125 KD + 4290 KD + 715 KD + 27 KD = 9157 KD

Example Based on Indemnity Laws & Calculations: upon resignation

Below are examples of calculating the end-of-service Indemnity for those entitled to it in the event of resignation:

Who Gets Kuwait Indemnity

A private sector worker is entitled to end-of-service indemnity in the following cases:

• If the employer terminates the employment contract for any reason other than the reasons specified in Paragraph A of Article 41 of the Kuwaiti Labor Law.
• If the contract of employment expires without renewal.
• If the worker terminates her employment contract due to marriage within a period not exceeding one year from the date of marriage.
• If the worker dies or becomes disabled, preventing them from performing their work, or if they contract an illness that requires the expiration of all their sick leave. This must be documented by a medical report from the medical committee approved by the Kuwaiti Ministry of Health.
• If the facility is permanently closed.
• If the employer declares bankruptcy and the company ceases operations.
• If the worker terminates the employment contract in the following cases:
• If the employer fails to comply with the contract or labor laws in Kuwait.
• If the worker is subjected to harm from their employer, their representative, or any other person, at the request or direct instigation of either of them.
• If his continued employment could cause him physical or health harm, according to a medical report from the Medical Arbitration Committee accredited in Kuwait.
• If the worker discovers fraud in the employment contract by the employer or his representative.
• If the employer accuses the worker of any offense punishable by a criminal penalty, and it is later proven that the worker is innocent.
• If the employer or his representative commits any act that violates public morals and ethics with the worker.

Who Gets Kuwait Indemnity: Cases of resignation

A private sector employee is entitled to an end-of-service indemnity upon resignation in the following cases:

• When the employee terminates an indefinite-term employment contract by resigning, as stipulated in Article 53 of the Kuwaiti Labor Law.
• If the employer terminates the employment contract, considering the employee as having resigned, due to absence from work for 7 consecutive days or 20 intermittent days within one year, in accordance with the provisions of Article 42 of the Kuwaiti Labor Law.

Who Gets Kuwait Indemnity: Cases of dismissal from work

If an employee is dismissed from his job in accordance with the provisions of Article 41 of the Kuwaiti Labor Law, he is subject to the following cases:

• The employee is entitled to an end-of-service indemnity if the employer terminates the employment contract for the following reasons:
  • If the employee is convicted of a crime involving honor, trustworthiness, or morals.
  • If the employee commits any immoral act in the workplace.
  • If he assaults his colleagues at the workplace, or assaults his manager or deputy due to work or in the workplace.
  • If he fails to comply with the rules, conditions, and terms of the employment contract.
  • If he repeatedly violates the employer’s instructions.
• The employee is not entitled to an end-of-service indemnity if the employer terminates the employee’s service for the following reasons:
  • If the employee commits any act or error that causes a significant loss to the company.
  • If it is proven that the employee is unqualified for the job and obtains the indemnity through fraud.
  • If the employee discloses business secrets to another party, resulting in a loss to the company, or potentially resulting in a loss.

Cases of indemnity deprivation in Kuwait

Expatriates working in the private sector in Kuwait are denied their right to receive an end-of-service indemnity in the following cases:

• If the expatriate commits a mistake that results in a significant loss for the employer.
• If it becomes clear that the expatriate obtained the job as a result of fraud or deception.
• If the expatriate discloses business secrets, which caused or could have caused a real loss for the establishment.

Tips to Get Your Max Indemnity for Service

Here are the most important tips you should consider getting your full benefits when your service ends:

• Study Labor Law: You must be fully aware of Kuwait’s end-of-service law and how to calculate your indemnity. This will allow you to accurately calculate them and understand the circumstances in which you are entitled to receive benefits and those in which you may be denied them.
• Do not leave your job unless you are unable to continue: as an employee get an end-of-service indemnity only in special cases upon resignation. To ensure your full rights, continue working.
• Be careful and avoid making any mistakes while working: as making mistakes that affect the company can result in your dismissal without an end-of-service indemnity, regardless of your number of years of employment.
• Read your employment contract: You must read your employment contract carefully, with the assistance of a lawyer if necessary, to understand the details of your end-of-service indemnity, if it is stated in the contract.
• Negotiate with your employer: Negotiate with your employer and maintain a good relationship with him or her to easily obtain your indemnity.

Conclusion

Employees working in the private sector in Kuwait receive an end-of-service indemnity according to the number of service years and the work system. The method of calculating the end-of-service indemnity for employees working in the private sector varies depending on work system, whether it is a monthly wage system, a daily wage system, a weekly wage system, an hourly wage system, etc.