How indemnity works in Kuwait
Kuwait calls it indemnity rather than gratuity, and it has two features that make it behave differently from everywhere else in the Gulf. Both work in your favour or against you depending on when you leave, and both are worth understanding before you resign.
The 26-day month
Your daily wage is your monthly wage divided by 26, not 30. Every other Gulf state uses 30. That makes each day of indemnity roughly 15% more valuable in Kuwait than the same formula would produce elsewhere. Some employers still divide by 30 out of habit or convenience. If your employer's figure is about an eighth below this page's, that is almost certainly the reason, and it is worth raising.
The resignation scale
| Service at resignation | You receive | Law |
|---|---|---|
| Under 3 years | Nothing | Art. 53 |
| 3 to under 5 years | Half the indemnity | Art. 53 |
| 5 to under 10 years | Two thirds | Art. 53 |
| 10 years or more | The full indemnity | Art. 53 |
The three-year mark is the single most important date to plan around: resigning at two years and eleven months earns nothing at all. The scale applies to resignation from an indefinite contract. If the employer ends the contract, the full indemnity is payable from the first day of service.
The underlying accrual
Before the scale is applied, a monthly-paid worker earns 15 days' wage for each of the first five years and a full month's wage for each year after that, capped at 18 months' pay in total. Workers paid daily, weekly or hourly accrue at 10 days and then 15 days per year, with a 12-month ceiling.
Unlike the UAE, the calculation uses your remuneration including fixed regular allowances, not basic pay alone. Indemnity applies equally to Kuwaiti nationals and expatriates in the private sector.
Questions people ask
Why is my employer's figure lower than this?
The most common reason is dividing the monthly wage by 30 instead of 26. The second most common is calculating on basic pay when the law uses remuneration including fixed allowances. Ask which they used.
I want to resign at two and a half years. What do I get?
Nothing, under Article 53. The scale starts at three years. If you are close, waiting can be worth several months' pay — check the exact date.
Does the scale apply if I am terminated?
No. Employer termination without cause pays the full indemnity regardless of length of service.
Is there a maximum?
Yes. Total indemnity cannot exceed 18 months' pay for monthly-paid workers, or 12 months for those paid daily, weekly or hourly.
Do Kuwaiti nationals get indemnity?
Yes. Articles 51 to 53 apply to Kuwaiti nationals and expatriates alike in the private sector, alongside PIFSS social insurance for nationals.
Where these rules come from
Private Sector Labour Law No. 6 of 2010, Articles 41, 44, 51, 52 and 53 · Public Authority for Manpower guidance.
Where sources genuinely disagree, this page says so rather than picking a number quietly.