Is gratuity mandatory in Kuwait?

Yes. Under Kuwait Labour Law No. 6/2010, every private sector employee who has completed at least one year of service is legally entitled to end-of-service indemnity (gratuity), regardless of nationality.

How is gratuity calculated in Kuwait?

Kuwait gratuity is calculated on basic monthly salary only. For the first 5 years: 15 days salary per year. Beyond 5 years: 30 days salary per year. Total is capped at 18 months salary. Daily rate = salary divided by 26.

Do I get gratuity if I resign before 5 years in Kuwait?

Under Article 53 of Kuwait Labour Law: Less than 3 years service — no gratuity on resignation. 3 to 5 years — 50% of calculated gratuity. 5 to 10 years — 66.7% of calculated gratuity. 10 years or more — 100% full gratuity. If terminated by employer, you always receive 100%.

What is the maximum gratuity in Kuwait?

Kuwait Labour Law caps total indemnity at 18 months (1.5 years) of basic salary, regardless of years served. Unused annual leave payout under Article 70 is calculated separately and added on top of this cap.

How long does an employer have to pay gratuity in Kuwait?

Under Kuwait Labour Law, your employer must pay all dues including gratuity within 7 days of employment termination. Delays give the employee the right to file a complaint with the Kuwait Public Authority for Manpower (PAM) at pam.gov.kw.

Kuwait Gratuity & Indemnity Calculator 2026

💡 Indemnity and gratuity are the same payment in Kuwait. Both terms refer to the mandatory end-of-service benefit under Kuwait Labour Law No. 6/2010.

Calculate Official Estimate

● Law Verified: April 2026

Basic Monthly Salary (KWD)

Do not include housing or transport allowances.

Start Date

End Date

Reason for Leaving

Unused Annual Leave Balance (Days)

Article 70: You are entitled to be paid for unused leave.

Total Final Entitlement

0.00 KWD

Service Accumulation Chart

■ First 5 Yrs (15-day rate) ■ After 5 Yrs (30-day rate)

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Calculation Breakdown

⚛ Kuwait Labour Law — Common Questions

If your employer refuses or delays paying your end-of-service gratuity, follow these steps:

Collect all documents: employment contract, salary slips, termination/resignation letter.
Send a formal written demand to your employer or HR via email (keep the copy).
If no response in 7 days, file a complaint at the Kuwait Public Authority for Manpower (PAM).
Indian nationals can also contact the Indian Embassy in Kuwait: +965 2253 5031 for legal panel referrals.
PAM will summon the employer for mediation — most cases are resolved at this stage.

Under Article 53 of Kuwait Labour Law:

Less than 3 years service: No gratuity if you resign.
3–5 years service: You receive 50% of calculated gratuity.
5–10 years service: You receive 66.7% of calculated gratuity.
10+ years service: You receive 100% — full gratuity.

If you are terminated by employer, you get 100% regardless of years.

Gratuity in Kuwait is calculated on basic monthly salary only. Housing allowance, transport allowance, food allowance, and other benefits are excluded. Only the base salary figure in your contract is used. This is why the calculator asks only for basic salary.

Kuwait Labour Law caps total indemnity at 18 months (1.5 years) of basic salary, regardless of total years served. So even if you work 30 years, the maximum gratuity is 18 × your monthly basic salary. This cap applies only to the base indemnity — unused leave payout (Article 70) is calculated separately and added on top.

Under Kuwait Labour Law, your employer must pay all dues including gratuity within 7 days of employment termination. If payment is delayed beyond this, the employee has the right to file a complaint with PAM immediately. Delays beyond 30 days can lead to penalties on the employer.

Kuwait Gratuity Calculator 2026

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