Kuwait End-of-Service Indemnity 2026: Rates, Resignation & the 18-Month Cap
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Kuwait calls end-of-service pay indemnity. It uses a two-band rate, a ÷26 daily wage, resignation reductions, and a hard cap.
The bands
15 days' pay per year for the first 5 years, then one month per year after. The daily wage is monthly pay ÷ 26, and pay means full remuneration including regular allowances.
Resignation reductions
- Under 3 years — nothing
- 3–5 years — half
- 5–10 years — two-thirds
- 10+ years — full
The cap
Your total indemnity can never exceed 18 months' pay, no matter how long you served.
Worked example
KWD 600/month, 6 years, terminated: first 5 = 5 × 15 × (600÷26) = KWD 1,731; year 6 = 1 × 30 × (600÷26) = KWD 692. Indemnity ≈ KWD 2,423.
Frequently asked questions
How is indemnity calculated in Kuwait?
Fifteen days' pay for each of the first five years and a full month's pay for each year after five, using a daily wage of monthly pay ÷ 26, capped at 18 months' total pay.
Do I get indemnity if I resign in Kuwait?
Yes, reduced: nothing under 3 years, half for 3–5 years, two-thirds for 5–10 years, and the full amount at 10+ years.
What is the maximum Kuwait indemnity?
Total indemnity is capped at 18 months (1.5 years) of pay.
Is Kuwait indemnity on basic or full pay?
On full remuneration including regular allowances.