How is End of Service Indemnity calculated in Kuwait under Law No. 6/2010?

According to Article 51 of Kuwait Labor Law No. 6/2010, workers paid monthly are entitled to 15 days remuneration for each of the first five years, and one full month remuneration for each year thereafter, capped at a maximum of 18 months total salary.

What happens to indemnity if an employee resigns in Kuwait?

Under Article 53, if an employee under an indefinite contract resigns: less than 3 years yields 0% indemnity; 3 to less than 5 years yields 50%; 5 to less than 10 years yields 66.67%; and 10+ years entitles the worker to 100% of the statutory indemnity.

Is daily wage in Kuwait calculated by dividing by 26 or 30 days?

Article 55 of Kuwait Labor Law specifies that for monthly-paid employees, the daily wage rate is determined by dividing the monthly remuneration by 26 working days.

Kuwait Labor Law No. 6/2010HR & Payroll Tools

Kuwait End of Service Indemnity (EOSB) Calculator

Kuwait Labor Law No. 6/2010Verified for 2026

Employment & Salary Details

Enter contract dates, remuneration, and termination terms for statutory calculation

Employment Start Date

Last Working Day (End Date)

Monthly Basic Salary (KWD)

KWD

Per Article 55: Contractual base wage

Fixed Monthly Allowances (KWD)

KWD

Housing, transport, or regular allowances

Contract Type

Reason for Separation

Daily Wage Divisor Basis

Kuwait Labor Court standard: Monthly remuneration / 26 days

Unused Annual Leave Balance (Days)

Accrued leave encashment under Article 70

Female employee resigning due to marriage within 1 year of marriage contract (Article 53 exception: 100% entitlement)

Statutory Settlement Summary

Total Net Payable Settlement

3,627.691KWD

(Indemnity: 3050.768 + Leave: 576.923 KWD)

Total Length of Service:6 yrs, 8 mos, 9 days

Total Monthly Remuneration:1000.000 KWD

Statutory Daily Wage (Art. 55):38.462 KWD

Gross Indemnity before Reduction:4575.923 KWD

Legal Entitlement % (Article 53):66.67%

Net End-of-Service Indemnity:3050.768 KWD

Leave Encashment (15 Days):576.923 KWD

Article 53 Resignation Scale for Indefinite Contracts:

< 3 years service: 0% entitlement.
3 to < 5 years: 50% entitlement.
5 to < 10 years: 66.67% (two-thirds).
10+ years: 100% full entitlement.

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Legal Reference: Kuwait Labor Law No. 6/2010 Provisions

Article 51 - Statutory Formula & Cap

Employees paid monthly receive 15 days remuneration for each of the first 5 years, and 1 full month remuneration for each subsequent year. Total indemnity cannot exceed 1.5 years (18 months) salary.

Article 53 - Resignation Entitlement

If an indefinite contract terminates via resignation: employee gets 50% indemnity for 3 to <5 years; 66.67% for 5 to <10 years; and 100% full indemnity for 10 or more years of service.

Articles 55 & 70 - Daily Wage & Leave

Article 55 establishes the daily wage divisor as monthly salary divided by 26 working days. Article 70 mandates cash encashment for any accrued unused annual leave upon separation.

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