End of Service Benefits in Kuwait: What You're Owed

If you're leaving a job in Kuwait — fired, resigned, or your contract just ended — you're likely entitled to an end of service indemnity. The amount depends on how long you worked, how you left, and which law covers you.

Quick answer

Under the Kuwaiti Private Sector Labour Law (Law No. 6 of 2010), end of service kuwait indemnity is calculated at 15 days' pay for each of the first 5 years, and one month's pay for every year after that. The total is capped at 1.5 years of pay. If you resign before 3 years, you get a reduced amount — or sometimes nothing. If the employer terminates you without cause, you get the full amount. Public sector workers follow a separate pension scheme under PIFSS (Public Institution for Social Security).

How end of service is calculated

The formula sits in Article 51 of Law No. 6 of 2010.

For the first 5 years: 15 days of your last wage per year. For every year after that: 30 days (one full month). The total payout can't exceed 1.5 years' remuneration — that's the statutory ceiling. ^[1]

"Last wage" means your most recent basic salary plus any regular allowances paid as part of the wage. Commissions and variable pay that form a steady part of your earnings count too. One-off bonuses usually don't.

Partial years count proportionally. If you worked 7 years and 4 months, you get 5 years at 15 days each, then 2 years and 4 months at 30 days each.

Monthly-paid workers and daily/hourly workers follow slightly different base-wage rules under Article 55 — if you're paid by piece or commission, the calculation uses your average wage over the last 12 months. ^[1]

Resignation vs termination — the numbers change

This is where people get surprised.

If the employer terminates you without you being at fault (and not under Article 41, which lists serious misconduct), you get the full indemnity per the formula above.

If you resign on an indefinite-term contract, Article 51 scales your entitlement:

• Less than 3 years of service: you get nothing.
• 3 to 5 years: half the indemnity.
• 5 to 10 years: two-thirds.
• 10+ years: full indemnity. ^[1]

For fixed-term contracts, resigning before the term ends generally forfeits the indemnity unless the employer breached the contract. Completing the full term entitles you to the full amount.

Watch out: if you're dismissed under Article 41 (assault, drunkenness at work, revealing trade secrets, repeated unexcused absence, etc.), the employer can refuse to pay the indemnity entirely. ^[1]

When and how you get paid

The employer must pay your end of service kuwait indemnity, plus any accrued unused annual leave and your final salary, at the time employment ends. Delays beyond that are a labour violation.

If the employer doesn't pay, you file a complaint with the Public Authority for Manpower (PAM) — Shoun Al-Amal. PAM runs a mandatory conciliation stage. If that fails within a reasonable period (typically a few weeks), the case moves to the Labour Court, which hears worker claims without court fees under Article 98 of the law. ^[1][2]

The limitation period for end-of-service claims is one year from the date employment ended (Article 97). Miss it and you lose the right to sue. Honestly, don't wait — the paperwork takes time to assemble.

Bring your work contract, salary slips, Civil ID, residency papers, and any termination letter when you file.

Domestic workers and other special categories

If you're a domestic worker (housemaid, driver, cook, nanny), you're not under Law No. 6 of 2010. You fall under Law No. 68 of 2015 on domestic workers. The end-of-service rule there is one month's pay per year of service, payable at the end of the contract. ^[3]

Oil sector workers have their own regime under Law No. 28 of 1969 and related decisions, often more generous than the general private sector. Check your sector's specific rules.

Public sector Kuwaiti nationals accrue pension rights through PIFSS rather than a lump-sum end-of-service payment.

What doesn't reduce your indemnity

A few things employers sometimes try that don't fly:

• Deducting "training costs" from your indemnity isn't allowed unless there's a specific written clause and it meets legal limits.
• Unpaid loans to the employer can be set off, but only up to legally permitted deduction ceilings.
• Resigning because of unsafe conditions, non-payment of wages, or employer breach can be treated as constructive dismissal under Article 48 — meaning you get the full indemnity as if the employer had fired you. ^[1]

Keep every payslip, your signed contract, and any written warnings. If it ever goes to the Labour Court, documents win cases.

For related issues on contract termination and notice periods, see our overview at /answers/employment.