Indemnity Calculator for Kuwait 2025

Are you leaving a job in Kuwait? & Looking for a simple way to calculate your indemnity in Kuwait? You need to know your Labor indemnity rights!  Many employees in Kuwait don’t know the full amount of their end-of-service benefits.

Leaving behind significant sums of money simply due to a lack of information. Don’t let this happen to you! I have made an Indemnity Calculator for Kuwait, they will help you How to Calculate End-of-Service Benefits as per Kuwait Labor Law.

Indemnitycalculator.com, simplifies this process, & easy-to-use which helps you to calculate your indemnity based on a few essential details and get what’s yours. Let’s get started!


Indemnity Calculator For Kuwait

Get an Accurate Estimate of Your End-of-Service Benefits For Kuwait

How to Use the Indemnity Calculator

Using the Kuwait Indemnity Calculator is straightforward. Here are the simple steps to follow:

  • Step 1: Go to the Kuwait Indemnity Calculator tool above.
  • Step 2: Enter the Date, These dates represent the beginning and end of service period.
  • Step 3: Fill in your monthly basic salary in KWD.
  • Step 4: Enter the number of unpaid leave days.
  • Step 5: Choose the Termination Type, whether you were "Resigned" or "Terminated".
  • Step 6: Click on the “Calculate Indemnity” Calculator will provide Total amount with break-up.

Tips for Accuracy: Double-check your inputs to ensure you receive an accurate assessment and a reliable estimate of your labor indemnity entitlement.

Why Use the Kuwait Indemnity Calculator?

The Kuwait Indemnity Calculator is a simple and reliable tool to calculate your end-of-service benefits. Here’s why it’s the best choice:

  • Accurate Results: Precise and error-free calculations. A clear breakdown details.
  • Easy to Use: Simple interface & designed ,Get instant results without any confusion.
  • Always Accessible: You can use the calculator anywhere, anytime Available online 24/7.
  • Free of Cost : Zero Cost, Save time & money by avoiding complicated manual calculations.

What is the Kuwait Labor Law indemnity?

Labor indemnity, also called end-of-service benefits or gratuity pay, is an important part of Kuwait’s labor laws. It ensures that employees get fair compensation when they leave their job, whether they resign or are terminated.

This payment recognizes the time and effort you have given to your job and helps provide financial support as you move forward.

Who is Entitled into indemnity?

In Kuwait, All private sector employees, whether Kuwaiti nationals or expatriates, are entitled to termination indemnity under the Kuwait labor laws. This means if you are working in the private sector with a valid employment visa, you have the right to receive compensation when your job ends, regardless of whether you resigned or were terminated.

Employers are legally bound in Kuwait to provide this payment to employees. Unfortunately, some companies may attempt to avoid their obligations, but this is against the indemnity labor law. 

Importantly, contributions made to the social security system are separate and must not be deducted from the indemnity amount.

Calculating indemnity can seem complex because it involves multiple factors like the number of years you’ve worked, your basic salary, and specific rules based on how long you’ve been employed.

In this guide, we’ll explain these components in detail, helping you understand exactly how your labor indemnity is calculated and ensuring you claim what you’re owed.

  • First You need to know...

Who Can Get Labor Indemnity in Kuwait? And who is eligible? What is all eligibility and possibility?

Who Can Get Labor Indemnity in Kuwait?

Generally, employees who have completed a minimum three (3) years of service are eligible for indemnity. Both fixed-term and indefinite-term contracts qualify, provided the termination does not fall under gross misconduct or other disqualifying conditions.

When Are You Eligible?

  • Period of service: If you worked more than 3-years or Less than 5-years your eligibility for indemnity; depends on the circumstances of your resignation or termination.
  • Resignation: If you resign before 5 years, you may get a reduced amount. After 5 years, you are entitled to full indemnity even if you resign.
  • Terminated by Employer: If your employer ends your contract, you’re entitled to the full amount of indemnity.
  • Worker’s Death or Disability: If a worker passes away or becomes permanently disabled, the full indemnity is paid to them or their family.
  • Employer’s Bankruptcy or Closure: If the company shuts down or goes bankrupt, employees are entitled to indemnity.
  • Extended Sick Leave: If an employee cannot return to work after using up all their sick leave, they can claim indemnity.
  • Marriage for Female Employees: Female employees who leave their job within one year of getting married can claim full indemnity.
  • Employer Misconduct: If an employer breaks the terms of the contract, the employee can leave and claim full indemnity.

Knowing these rules helps you protect your rights and ensures you don’t miss out on the money you’ve earned!

How is Indemnity Calculated in Kuwait?

The indemnity calculation is depends on the employee’s sum of basic salary and fixed allowances (excluding transportation allowances) and their duration of services. The calculation differs based on whether the employee has an indefinite or fixed-term contract and the reason for termination.

Resignation vs Termination in Indemnity Calculation

It's important to note that the calculation of indemnity differs depending on whether the employee has resigned or been terminated.

Resignation

An employee who resigns before completing three years with the employer is not entitled to any indemnity.

However, if the employee completes three to five years and then resigns, they are eligible for half of the indemnity. For those who complete five to ten years, two-thirds of the indemnity is granted. If an employee completes ten years of service before resigning, they are entitled to full indemnity, which equals one-month salary for each year worked, as stipulated in Article 51 of the Labor Law in the private sector, capped at 18 months.

In the case of termination, the employee is entitled to full indemnity regardless of the years of service.

Termination

Upon termination, the worker is entitled to 15 days of remuneration for each of the first five years of service, and one month of remuneration for every year thereafter. The total end-of-service benefit should not exceed one-and-a-half years of remuneration for monthly-paid employees.

Indemnity for Resigned :- Employees who have Resigned ,The final indemnity amount calculation will be determined based on the following:

  • Resignation before completing 5 years: 50% of full entitlement.
  • Resignation after completing 5 years but before 10 years: 66.67% of full entitlement.
  • Resignation after completing 10 years: 100% of full entitlement.
  • Termination in all cases: 100% indemnity

General Formula for Indemnity Calculation

For the first 5 years of service: 15 days' pay for each year worked.
After 5 years: 30 days' pay for each additional year worked.
The total indemnity cannot exceed 1.5 times the employee's annual salary.

Key Components of Calculating Indemnity

The indemnity is often calculated based on the employee's wage and length of service. The standard formula is:

  • Years of Service: The longer you stay, the higher your indemnity. However ,the calculation differs: 1) For the first 5 years, indemnity is based on 15 days of daily salary per year. 2) After 5 years, it increases to 30 days of daily salary per year for any additional years
  • Calculation Methods: Daily salary in Kuwait is calculated by dividing monthly basic salary by 26 days, with 15 days for the first 5 years and 30 days after.
  • Unpaid Leave Days: If you have not taken Paid leave, these days are usually added to your total service period. However, most companies set a limit, often up to 60 days. This ensures you are compensated fairly for the entire period you have been with the employer.

Calculating your indemnity can seem complicated, but this guide simplifies the process step-by-step. By following these methods, you can calculate your end-of-service benefits accurately.

Indemnity Calculation if you resign (Examples)

Example: Let’s say Mr. Javed worked in Kuwait for 6 years, 8 months, and 10 days with a monthly salary of 800 KD and 20 days of unused paid leave.

  1. Daily Salary: 800 ÷ 26 = 30.77 KD
  2. First 5 Years: (30.77 × 15) × 5 = 2,307.75 KD
  3. Exceeding Year (1 year): (30.77 × 30) × 1 = 923.10 KD
  4. Months (8 months): (8 ÷ 12) × (30.77 × 30) = 615.40 KD
  5. Days (10 days): (10 ÷ 365) × (30.77 × 30) = 25.32 KD
  6. Paid Leave (20 days): 20 × 30.77 = 615.40 KD

Total Indemnity = 2,307.75 + 923.10 + 615.40 + 25.32 + 615.40 = 4,486.97 KD

Calculate Your Kuwait Indemnity in Excel or Using a Calculator

Indemnity calculation for Exact Years :The number of years you have worked is one of the most important factors in calculating indemnity. The longer you stay, the higher your indemnity.

However, the calculation differs:

For the first 5 years, indemnity is based on 15 days of daily salary per year.

  • Formula: First 5 years= (Daily Salary × 15 days ) × Number of Years
  • Example: If your daily salary is 30.77 KD and your worked exact is 5-years,
    Indemnity calculation for 5 years Kuwait salary would be: (30.77 KD × 15 Days ) × 5 Year = 2,307.75 KD

After 5 years, it increases to 30 days of daily salary per year for any additional years
If you’ve worked for more than 5 years, you are entitled to 30 days of daily salary for each additional year beyond the first 5 years.

  • Formula: Exceeding Years Indemnity = (Daily Salary ×30 days) × Number of Years
  • If you worked for 8 years and your daily salary is 30.77 KD, the calculation for the exceeding is 3 years (8-5)
    Indemnity calculation for 3 years Kuwait salary would be: (30.77 KD × 30 Days ) × 3 Year = 2,769.30 KD
  • Indemnity calculation for 8 years Kuwait salary would be: 5,077.05 KD =(2,307.75 "First 5 Year Amount + 2,769.30 " Exceeding 3 Year Amount)

Calculation for Additional Months:

If you worked 5-years or more than , getting extra months beyond the full years, calculate them separately to ensure fair compensation.

Example: Let’s say Fatima worked in Kuwait for 6 years, 8 months, and 0 days with a monthly salary of 800 KD , Daily Salary will be : 800 ÷ 26 = 30.77 KD


  • Formula : Monthly Indemnity = (Number of Months" you worked extra ÷ 12 "Year of Total Month") × (Daily Salary × 30 days )
  • Example: Kuwait indemnity calculation after 5 years for extra months salary would be = (8 ÷ 12) × (30.77× 30 days ) = 615.4 KD

If you worked Less than 5-years , getting extra months beyond the full years, calculate them separately to ensure fair compensation.


  • Formula : Monthly Indemnity = (Number of Months ÷ 12") × (Daily Salary × 15 days )
  • Example: Calculation worked Less 5 years for extra months salary would be = (8 ÷ 12) × (30.77× 15 days ) = 307.7 KD

Calculation for Additional Days

Partial days should also be included in the calculation.

For 5 Years or More:


  • Formula : Daily Indemnity = (Number of Days ÷ 365) × (Daily Salary × 30)
  • Example: For 10 additional days and a daily salary of 30 KD, with more than 5 years of service additional Days Amount would be Days: (10 ÷ 365) × (30 × 30) = 24.66 KD

For Less Than 5 Years:


  • Formula : Daily Indemnity = (Number of Days ÷ 365) × (Daily Salary × 15)
  • Example: For 10 additional days and a daily salary of 30 KD, with Service is less than 5 years of service: (10 ÷ 365) × (30 × 15) = 12.33 KD

Paid Leave Balance

Unused paid leave should be added to your indemnity calculation.


  • Formula : Paid Leave Balance = Number of Paid Leave Days × Daily Salary
  • Example: If you have 20 paid leave days and your daily salary is 30 KD:
    20 × 30 = 600 KD

How to Claim indemnity in Kuwait Step by Step

Approach your HR department or the relevant authority in your company to submit your claim. Ensure you provide all necessary documentation and calculations.

Basic Documents ,details and Form for an Indemnity Claim

To strengthen your indemnity claim, it is crucial to gather the following documents and information:

  • Employment Contract: The terms of employment, including your job title, salary, and duration of service.
  • Service Termination Certificate: A mandatory document from your employer confirming your employment duration and the reason for termination.
  • Salary Records: Include salary slips to justify your basic salary and any additional payments.
  • Proof of Employment Duration: Gather documents that verify your length of service, such as appointment letters and performance appraisals.
  • Daily Salary Calculation: Clearly calculate your daily salary and include this in your claim.
    Leave Balance: Document any unused leave days, as these contribute to your total indemnity calculation.
  • Dentification Documents: Include copies of your Civil Identity Card, passport, and any necessary residency documents.
  • Indemnity Calculation: Prepare a detailed calculation of your indemnity based on labor law formulas.
  • Notice of Termination: Provide proof of proper notice given or received, in line with your contract.
  • Formal Request Letter: Draft a clear and concise letter requesting indemnity, outlining your details and the calculated amount.
  • Additional Supporting Documents: Include any relevant evidence, such as medical certificates or prior correspondence related to your employment.

Indemnity Claim & Follow-up Process in Kuwait

Here's a step-by-step guide on how to proceed with your indemnity claim:

  • Step 1: Documentation: Collect all the necessary documents listed above to support your claim.
  • Step 2: Request Letter:- Write a formal request letter that clearly outlines your claim, including all relevant details.
  • Step 4: Submit Your Claim :- Submit your claim to your employer’s HR department or relevant authority, along with all supporting documents.
  • Step 5: Follow Up :- Regularly follow up with your employer to ensure your claim is being processed.
  • Step 6: Seek Legal Advice:-  If your claim is denied or you encounter disputes, consult with a labor lawyer for legal guidance.
  • Step 7: File a Complaint if Necessary :- if disputes persist, consider filing a complaint with the Ministry of Social Affairs and Labor (MOSAL) or pursuing mediation and arbitration.

How you get  Maximize Indemnity

Here are some proactive steps to get your full indemnity:

Know Your Contract (Company Contract): Read your employment contract for any clauses related to indemnity. Understanding your rights can help you claim the maximum amount and other benefits or allowances you are entitled to .

Keep Records (Communication Records): Keep records of your employment salary slips, Paid Balance Leave,  including any communications regarding your termination and indemnity.

Negotiate (if possible): In some cases you can negotiate your indemnity with your employer especially if you are leaving on good terms.

Professional Advice : Keep yourself up to-date with any changes in labor laws or regulations that may affect your indemnity. If you're unsure about the process or your rights, consider consulting with a legal professional who specializes in labor law in Kuwait.

Be Proactive : Engage with your HR department early in the process to clarify any doubts and ensure that your claim is processed smoothly; Knowledge is power! By knowing your rights and being proactive you can get your full labor indemnity in Kuwait.

Use our Kuwait Indemnity Calculator as a starting point and don’t hesitate to seek professional advice when needed.

Disclaimer

The Kuwait Labor Indemnity Calculator provided on this website is intended for educational and informational purposes only. It offers an estimate of potential indemnity based on Kuwaiti labor law, but the actual amount you may be entitled to could vary significantly depending on your individual circumstances, employment contract, and applicable legal regulations.

This calculator is only a guide and should not be considered a substitute for legal advice or consultation with a qualified attorney. Labor indemnity calculations are often complex and may require a detailed review of your specific employment history and contract terms.

Additionally, please note that changes to labor laws or regulations could affect the accuracy of these calculations.

We strongly recommend that you consult a legal expert or labor authority for a precise and personalized assessment of your labor indemnity entitlement. The information provided here is not intended to create an attorney-client relationship, nor does it offer legal services or advice.

By using this tool, you acknowledge and agree that the results are estimates only and may not reflect the actual indemnity you are entitled to under Kuwaiti labor law. For any labor-related matters, always seek professional legal guidance.

FAQS of Kuwait Indemnity

  • What is labor indemnity in Kuwait?
  • Labor indemnity, known as end-of-service benefits, is compensation provided to employees when they leave their job. It is calculated based on years of service and basic salary.
  • Who is eligible for labor indemnity in Kuwait?
  • All private sector employees, including Kuwaiti nationals and expatriates with valid work permits, are eligible for labor indemnity.
  • How is labor indemnity calculated?
  • Indemnity is calculated based on years of service, daily salary, and specific rules for the first 5 years and exceeding years.
  • What happens if I resign before completing 5 years?
  • If you resign before 5 years of service, you may receive partial indemnity based on your tenure and minimum three (3) years of service are eligible for indemnity
  • Am I entitled to full indemnity if my employer terminates me?
  • Yes, employees terminated by their employer are entitled to full indemnity, regardless of years of service
  • Are female employees eligible for indemnity after marriage?
  • Yes, female employees who leave their job within one year of getting married can claim full indemnity.
  • How is daily salary calculated for indemnity purposes?
  • Daily salary is calculated by dividing the monthly basic salary by 26, as a work month in Kuwait is considered to have 26 working days.
  • How much indemnity do I receive for the first 5 years of service?
  • For the first 5 years, you are entitled to 15 days of daily salary for each year of service.
  • What is the indemnity rate after 5 years of service?
  • After 5 years, you are entitled to 30 days of daily salary for each additional year of service.
  • How are partial months and days calculated? For months: (Number of Months ÷ 12) × (Daily Salary × applicable rate)
  • For days: (Number of Days ÷ 365) × (Daily Salary × applicable rate)
  • What if I have unpaid leave?
  • Unpaid leave days may be excluded from the total service period, but most companies allow up to 60 unpaid leave days to be included.
  • How do I claim labor indemnity in Kuwait?
  • Submit your claim to your employer’s HR department with supporting documents like your employment contract, termination notice, and leave records.
  • What if my employer refuses to pay indemnity?
  • If disputes arise, you can file a complaint with the Ministry of Social Affairs and Labor (MOSAL) or consult a labor lawyer.
  • Can I negotiate my indemnity amount with my employer?
  • Yes, especially if you are leaving on good terms, negotiation may help maximize your indemnity.
  • How can I ensure my indemnity calculation is accurate?
  • Use the Kuwait Indemnitycalculator.com for an estimate, double-check with official labor laws, and consult a legal expert if needed.
  • What documents are needed to file an indemnity claim?
  • Essential documents include your employment contract, salary slips, termination notice, service termination certificate, and leave balance records