Kuwait calls it indemnity. Monthly-paid staff get 15 days' wage per year for the first five years and a month per year after, capped at 18 months. Resign before three years and you get nothing; between three and ten years you lose a half or a third. The wage includes fixed allowances, which makes Kuwait's base wider than its neighbours'.
Last wage including fixed allowances, excluding the social and children's allowances paid under Law 19/2000.
Estimate of the legal minimum only. Contracts and company policies can pay more, employers may deduct amounts you owe, and free-zone or government employers can follow different rules. Not legal advice.
Indemnity = wage × (15 ÷ 26 × years up to 5 + 1 × years after 5), capped at 18 × wage, × resignation fraction
5.0 years × 15/26 month + 2.5 years × 1.00 month = 5.385 months of wage. KWD 500.000 × 5.385 = KWD 2,692.308.
| Situation | Minimum service | What is paid |
|---|---|---|
| Termination by employer or contract expiry | Any, pro rata | Full indemnity |
| Resignation, under 3 years | — | Nothing |
| Resignation, 3 to 5 years | 3 years | Half |
| Resignation, 5 to 10 years | 5 years | Two thirds |
| Resignation, 10 years or more | 10 years | Full |
| Woman resigning within 1 year of marriage (Art. 52) | Any | Full |
| Daily, weekly, hourly or piece-rate pay | — | 10 days per year to year 5, 15 after; cap 12 months |
Finding: slightly more. The law says 15 days' wage, and Kuwaiti practice divides a monthly wage by 26 working days, not 30. That makes each early year worth 0.577 of a month, not 0.5: about 15% more. Calculators that use ÷30 understate the first five years. You can switch the divisor below to see both.
| Service | Kuwait, ended by employer | Kuwait, resigned | UAE (basic) |
|---|---|---|---|
| 1 year | 0.58 | 0.00 | 0.70 |
| 2 years | 1.15 | 0.00 | 1.40 |
| 3 years | 1.73 | 0.87 | 2.10 |
| 5 years | 2.88 | 1.92 | 3.50 |
| 7 years | 4.88 | 3.26 | 5.50 |
| 10 years | 7.88 | 7.88 | 8.50 |
| 15 years | 12.88 | 12.88 | 13.50 |
| 20 years | 17.88 | 17.88 | 18.50 |
| 25 years | 18.00 | 18.00 | 23.50 |
Calculated by KalQLater from the articles cited below. UAE figures use Article 51 of Federal Decree-Law No. 33 of 2021. Wage definitions differ: Kuwait's base is described in the calculator, the UAE's is basic salary only, so equal months do not mean equal money.
| Monthly wage | 3 yrs | 5 yrs | 10 yrs | 20 yrs |
|---|---|---|---|---|
| KWD 250.000 | KWD 432.692 | KWD 721.154 | KWD 1,971.154 | KWD 4,471.154 |
| KWD 500.000 | KWD 865.385 | KWD 1,442.308 | KWD 3,942.308 | KWD 8,942.308 |
| KWD 1,000.000 | KWD 1,730.769 | KWD 2,884.615 | KWD 7,884.615 | KWD 17,884.615 |
| KWD 2,000.000 | KWD 3,461.538 | KWD 5,769.231 | KWD 15,769.231 | KWD 35,769.231 |
Download all six Gulf countries: gcc-gratuity-months-by-tenure.csv (CC BY 4.0, please link to this page)
Service is counted in calendar days between your joining date and last working day, inclusive, minus unpaid days, and converted to years at 365 days. Each band of service is multiplied by its statutory rate in months of wage, then any cap and resignation fraction is applied. Part years are pro rata where the law allows it.
Not modelled: contractual terms better than the law, free-zone or government schemes, deductions for amounts owed, and court or settlement outcomes. Results are estimates, not legal advice.
Under Article 51 of Law No. 6 of 2010, monthly-paid employees get 15 days' wage for each of the first five years and one month's wage for each year after, pro rata for part years, up to a maximum of 18 months' wage.
Article 53: nothing with under 3 years of service, half with 3 to 5 years, two thirds with 5 to 10 years and the full indemnity with 10 years or more.
Kuwaiti practice divides the monthly wage by 26 working days, so 15 days' wage is about 0.577 of a month. Some employers use 30. The calculator defaults to 26 and lets you switch.
Yes, fixed allowances that are part of the wage are included. The social allowance and children's allowance paid under Law 19/2000 are excluded.
Yes: 18 months' wage for monthly-paid employees and one year's wage for others.