Kuwait Indemnity Calculator: Fast & Accurate Result

Kuwaiti Indemnity calculator can be used to find out the end-of-service Indemnity that the worker receives based on the number of years of service, the number of paid vacations due, and his monthly salary.

Kuwait Indemnity Calculator Online

You can use the following Indemnity calculator to calculate your end of service gratuity:

Labor Indemnity in Kuwait

Work Indemnity in Kuwait is a reward granted by the employer to the worker in the private sector whose service has ended according to the period the worker spent in this work and according to his monthly salary and the number of days of paid vacation, the Indemnity also depends on the reason for terminating the employment contract.

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

Indemnity in Kuwaiti Labor Law

Labor Law No. 6 of 2010 regarding work in the private sector has specified in Chapter Three the cases of granting end-of-service gratuity and termination of the employment contract, whereby the worker is granted full Indemnity in the event that his contract expires and is not renewed, and in cases where the employer was the reason for terminating the contract, it has also specified the percentage of Indemnity in the event that the employment contract is terminated based on the worker’s desire. ^[1]

Who is entitled to Indemnity in Kuwait

All private sector workers in Kuwait are entitled to an end-of-service gratuity upon the termination of their contract for the period specified therein or upon termination of the contract for reasons related to the employer as specified by the Kuwaiti Labor Law.

How to calculate your Indemnity in Kuwait

End of service Indemnity in Kuwait is calculated based on the length of service with the employer calculated in years, months and days and on the worker’s monthly salary at the end of his service. The following is how to calculate the Indemnity:

Calculating Kuwait Indemnity for the First Five Years

The following simple calculation can be used to calculate the end-of-service Indemnity in Kuwait for the first five years:

• First five year bonus = (daily salary × 15) × number of years

Calculating Kuwait Indemnity for years exceeding five years

The end-of-service Indemnity in Kuwait can be calculated for years exceeding five years as follows:

• Bonus for years exceeding five years = (daily salary × 30) × number of years exceeding 5 years.

Calculate Kuwait Indemnity for months and days beyond full years

End of service Indemnity in Kuwait can be calculated for months and days exceeding years of service according to the following calculations:

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

Calculating paid leave balance for Indemnity in Kuwait

You can use the following simple calculation to calculate the paid leave balance for end of service Indemnity in Kuwait:

• Paid leave balance Indemnity amount = (Number of paid leave days) × Daily salary

Calculating total Indemnity in Kuwait

You can use the following simple calculation to calculate the total Indemnity in Kuwait:

• Total Indemnity = Indemnity for the first five years + Indemnity Extra years + monthly Indemnity + daily Indemnity + paid leave balance amount.

See More: Indemnity Law | How to Claim Indemnity

Use Kuwait Labor Indemnity Calculator Steps

You can follow the following simple steps to use the Labor Indemnity Calculator in Kuwait:

• Go to the Indemnity calculator in Kuwait.
• Specify the start date of work according to the calendar used in the calculator.
• Specify the end date of work according to the calendar used in the calculator.
• Input the monthly salary of the worker upon the end of his contract.
• Input the number of unpaid leave days.
• Click on the Calculate Indemnity button.

Benefits of using Kuwait Labor Indemnity Calculator

The End of Service Gratuity Calculator in Kuwait helps in knowing the worker’s dues accurately according to the Labor Law without the need to perform any calculations, all the worker needs to do is enter the start and end date of service, his monthly salary, and the number of paid vacations.

Kuwait Indemnity Calculation Elements

The calculation of Indemnity in Kuwait depends on the following elements:

• Number of years of service: The value of Indemnity varies according to the number of years of service of the worker, the more years, the greater the value of Indemnity, additional months and days also play a role in the calculation process.
• Monthly salary of the worker: The monthly salary of the worker is adopted upon the end of his service to calculate the value of Indemnity
• Paid vacations: The worker is entitled to paid vacations annually, the duration of which varies according to the number of years of service, if the worker’s service is terminated without obtaining these vacations, he is entitled to Indemnity according to his daily salary.

Example of calculating Indemnity according to Kuwait labor law

Let’s assume that Abdullah worked in a private company in Kuwait for 7 years, 9 months and 18 days, his monthly salary is 1600 Kuwaiti dinars and he has 15 days of unused paid vacation, what is the value of the Indemnity?

• Daily salary = 1600 KD ÷ 26 days = 61.53 KD
• Indemnity for the first five years = (61.53 KD × 15) × 5 years = 4614.75 KD
• Indemnity for years exceeding five years = (61.53 KD × 30) × 2 = 3691.8 KD
• Monthly bonus = (9 months ÷ 12 months) × (61.53 KD × 30) = 1384.425 KD
• Daily Indemnity = (18 days ÷ 365 days) × (61.53 KD × 30) = 91.030 KD
• Paid leave balance for Indemnity = (15 days) × 61.53 KD = 922.95 KD
• Total Indemnity = 4614.75 KD + 3691.8 KD + 1384.425 KD + 91.030 KD + 922.95 KD = 10704.955 KD

Cases of Indemnity Eligibility in Kuwait

The worker is entitled to end-of-service Indemnity upon termination of his service for one of the following reasons:

• When the employer does not abide by the text of the contract and the provisions of the Labor Law.
• In the event that the employer or his representative assaults the worker.
• When continuing to work is harmful to the worker’s health according to a report from the Medical Arbitration Committee at the Ministry of Health.
• In the event that the worker is acquitted of a charge punishable by law directed at him by the employer.
• The employer commits acts that violate public morals towards the worker.
• The death of the worker or his inability to continue working or due to his illness with the exhaustion of his sick leave.
• Issuance of a bankruptcy judgment for the employer.
• The establishment is permanently closed.
• Termination of the employment contract by the employer.
• The expiration of the term of the employment contract without renewal.
• Termination of the worker’s employment contract due to her marriage within one year from the date of marriage.

Cases of depriving the worker of Indemnity in Kuwait

You can find below the cases in which the worker in Kuwait is deprived of the end-of-service gratuity:

• When the worker causes significant losses to the employer.
• When the worker discloses the business secrets of the establishment, which may cause losses to the employer.
• If the worker uses fraudulent methods to obtain the job.

Cases of obtaining part of Indemnity in Kuwait

You can find below the cases in which the worker in Kuwait receives part of the end-of-service gratuity:

• The worker is entitled to half the value of the gratuity if he ends his service himself within 3 to 5 years from the start of work with the employer.
• The worker is entitled to two-thirds of the value of the gratuity if he ends his service himself within a period of more than 5 years and less than 10 years from the start of work with the employer.

Conclusion

The Kuwaiti Labor Law imposes an end-of-service gratuity on workers after the expiry of their contract or its termination for one of the reasons specified by the law, with the possibility of obtaining a portion of the gratuity if the contract is terminated by the worker after at least three years of work.