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How to Calculate Indemnity in Kuwait?

Indemnity in Kuwait is calculated based on salary, length of service in years, months, and days, and unused paid vacation, using simple calculations.

How to Calculate Indemnity in Kuwait

You can follow the simple steps below to calculate indemnity in Kuwait: [1]

  • Calculate the end of service Indemnity for the first five years.
  • Calculate the end of service Indemnity for years exceeding five.
  • Calculate the end of service Indemnity for parts of a year, including months and days.
  • Calculate the balance of unused paid leave.
  • Collect the results of previous calculations.

How to Calculate Indemnity in Kuwait

See More: Indemnity Calculation after 5 Years | Indemnity Calculation for 2 Years Salary | Indemnity Calculation After 10 Years

How to Calculate Indemnity in Kuwait for the First Five Years

You can use the calculation below to calculate your end of service indemnity in Kuwait for the first five years:

  • First five year gratuity = (daily salary x 15) x number of years

How to Calculate Indemnity in Kuwait for Years Over Five

You can use the calculation below to calculate your end of service indemnity in Kuwait for years over five:

  • Indemnity for years over five years = (daily salary x 30) x number of years over five.

How to Calculate Indemnity in Kuwait for Part of a Year

You can use the calculations below to calculate your end of service indemnity in Kuwait for Part of a Year (Months and Days):

  • For less than 5 years of service:
    • Monthly bonus = (Number of months ÷ 12) × (Daily salary × 15)
    • Daily bonus = (Number of days ÷ 365) × (Daily salary × 15)
  • For more than 5 years of service:
    • Monthly bonus = (Number of months ÷ 12) × (Daily salary × 30)
    • Daily bonus = (Number of days ÷ 365) × (Daily salary × 30)

How to Calculate paid leave Indemnity in Kuwait

You can use the calculations below to calculate your paid leave balance for end of service indemnity in Kuwait:

  • Paid Leave Balance = (Number of Paid Leave Days) × Daily Salary

How to Calculate total Indemnity in Kuwait

You can use the calculations below to calculate your total end of service indemnity in Kuwait:

  • Total End of service indemnity = First Five Years’ Bonus + Additional Bonus Years + Monthly Bonus + Daily Bonus + Paid Leave Balance.

See More: Indemnity Calculator | Indemnity Law | How to Claim Indemnity

How to Use the Indemnity Calculator in Kuwait

You can follow the simple steps below to calculate indemnity in Kuwait using the indemnity calculator below:

Please enter a valid start date
Please enter a valid end date
Please enter a valid salary amount
Please enter a valid number of days
  • Input the start date of your employment contract (day, month, and year) in the Start Date field.
  • Input the end date of your employment contract (day, month, and year) in the End Date field.
  • Input your monthly salary in Kuwaiti dinars in the Monthly Salary field.
  • Input the number of unused paid vacation days in the designated space.
  • Click “Calculate Indemnity.”
  • View end of service compensation in Kuwait.

Conclusion

The method of calculating indemnity in Kuwait differs for the first five years from the years beyond that, 15 days’ salary is used to calculate indemnity for the first five years, while 30 days’ salary is used to calculate indemnity for additional years.

Questions & Answers

How is today's salary calculated for indemnity in Kuwait?

How is today's salary calculated for indemnity in Kuwait?

Today's salary for end of service indemnity in Kuwait is calculated by dividing the monthly salary by 26 days.

How is annual indemnity calculated in Kuwait?

How is annual indemnity calculated in Kuwait?

The annual indemnity in Kuwait for the first five years = (daily salary x 15) x number of years. The annual compensation for additional years = (daily salary x 30) x number of years exceeding five.

Are paid vacations used by the worker included in the calculation of indemnity in Kuwait?

Are paid vacations used by the worker included in the calculation of indemnity in Kuwait?

Paid vacations used by the worker are not included in the calculation of indemnity in Kuwait.

How can indemnity be claimed in Kuwait?

How can indemnity be claimed in Kuwait?

The worker can claim end of service indemnity directly from the employer or through legal authorities if the employer refuses to pay the compensation to the worker.

When is indemnity due in Kuwait?

When is indemnity due in Kuwait?

The worker is entitled to indemnity in Kuwait for the termination of his employment contract, provided that the termination does not deprive the worker of compensation, according to Kuwaiti labor law.

References

[1]manpower.gov.kwSTATE OF KUWAIT. NEW PRIVATESECTOR. LABOUR LAW19 يوليو 2025