Indemnity Law in Kuwait 2025

Indemnity Law in Kuwait regulates the relationship between the private sector worker and the owner of the establishment or company at the end of the worker’s service as a type of reward for his services during the years of work.

Indemnity Law in Kuwait

The Indemnity law in Kuwait is considered part of Labor Law No. 6 of 2010 regarding work in the private sector, as Chapter Three of the law includes cases of termination of the employment contract and end-of-service gratuity from Article 41 to Article 54. ^[1]

See More: Indemnity Calculator | How to Claim Indemnity

Indemnity value labor law in Kuwait

The Labor Law has determined the value of end-of-service Indemnity in Kuwait as follows:

• 10 days’ wages for each year of service during the first five years and 15 days’ wages for each year exceeding 5 years for workers who receive their wages by the day, week, hour or piece, provided that the value of the Indemnity does not exceed the wage of a full year for the worker.
• 15 days’ wages for each year during the first five years and one month’s wages for each year exceeding 5 years for workers who receive their wages at the end of each month, provided that the value of the Indemnity does not exceed the wage of a year and a half for the worker.
• The worker is granted Indemnity for the months and days that exceed the number of years he spent in the job.

Cases of Granting Indemnity labor law in Kuwait

Below you can find out cases in which a worker is entitled to end-of-service Indemnity:

• Termination of the employment contract by the employer.
• Expiry of the employment contract without renewal.
• Termination of the worker’s contract due to her marriage, if the termination occurred within one year from the date of marriage.
• Termination of the contract as a result of the employer’s failure to abide by the terms of the employment contract.
• Assault by the employer or his representative on the worker.
• Termination of the employment contract as a result of a danger threatening the safety of the worker if he continues to work.
• Fraud by the employer regarding the terms of work.
• When the worker is proven innocent of a charge punishable by law directed at him by the employer.
• The employer or his representative commits an act that is contrary to morals towards the worker.
• Termination of the worker’s contract due to his death or inability to perform work or due to an illness that has exhausted his sick leave, pursuant to a document from the competent medical authorities.
• Termination of the worker’s contract as a result of the employer declaring bankruptcy.
• Permanent closure of the facility.

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

Cases of Granting Part of Indemnity labor law in Kuwait

Below you can find out cases in which a worker is entitled to end-of-service Part of Indemnity:

Download Indemnity Law in Kuwait PDF

Kuwait Indemnity Law can be downloaded in PDF format “from here” as the law includes in its third chapter a detailed explanation of the cases of termination of the employment contract and entitlement to full or partial Indemnity.

Conclusion

The Kuwait Labor Law explained the cases of granting end-of-service Indemnity to the worker in full or in part, whether the contract was terminated by the worker or by the employer, which helped to clarify the rights and duties of each.