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Kuwait Indemnity Calculator

Estimate the end-of-service indemnity a private sector worker earns in Kuwait from monthly wage and completed years of service.

Enter your numbers

Monthly wage (KWD)

Example: 300

Years of service

Example: 8

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

dailyWage = monthlyWage / 26; firstFiveYears = 15 x dailyWage x min(years, 5); remainingYears = 30 x dailyWage x max(0, years - 5); totalIndemnity = firstFiveYears + remainingYears

How the calculation works

Enter your monthly wage and the number of completed years of service, using the wage stated in the employment contract.

The tool works out a daily wage of one twenty-sixth of the monthly wage and pays fifteen days per year for the first five years.

After five years it pays one full month, taken as thirty days, for each further year and adds both parts together.

Common mistakes

Counting incomplete years as full ones, because the Kuwaiti rule pays for completed years and pro-rates only the final part.
Applying the same fifteen-day rate throughout, since the rate rises to a full month per year after the first five years.

When to use it

Use it to check the indemnity a Kuwaiti employer offers when a contract ends or is not renewed.
Use it to compare staying one more year against resigning now, since the rate doubles after five years.

Worked example

With a monthly wage of KWD 300 and 8 years of service, the daily wage is KWD 11.538. The first five years give KWD 865.38 and the remaining three years give KWD 1,038.46, so the total indemnity is KWD 1,903.85.

Daily wage 9.86

First five years 739.73

Remaining years 887.67

Total indemnity 1,627.40

Common questions

How is the daily wage found for indemnity?

Kuwaiti practice takes a daily wage as one twenty-sixth of the monthly wage, so a KWD 300 monthly wage gives a daily wage of about KWD 11.54.

Last updated: 2026-10-03