About KuwaitGratuity.com
A free, accurate, and transparent tool helping Gulf workers and expats calculate their Kuwait end-of-service benefits — based directly on Kuwait Labour Law No. 6/2010.
What is KuwaitGratuity.com?
KuwaitGratuity.com is a free online calculator built to help private-sector employees in Kuwait calculate their end-of-service indemnity (gratuity) accurately — before approaching their employer or the Public Authority for Manpower (PAM).
The calculator covers the full Kuwait Labour Law formula including the 15-day/30-day rate split (Article 51), the 18-month cap, Article 53 resignation deductions, and Article 70 unused leave encashment — in both English and Arabic.
100% Private
Your salary and dates never leave your browser. Zero data stored on any server.
Law-Based Formula
Directly implements Kuwait Labour Law No. 6/2010, Articles 51, 53, and 70.
Always Free
No registration, no subscription, no fees. Free to use, share, and download PDF.
Mobile-First
Designed for Gulf workers who primarily use smartphones to access financial tools.
Calculation Methodology
Our calculation strictly follows Kuwait Labour Law No. 6/2010. Here is the exact method used:
Step 1 — Daily Rate (Standard Divisor)
Kuwait Labour Law uses a 26-working-day divisor to derive the daily wage from the monthly basic salary.
Step 2 — Base Indemnity (Article 51)
Article 51 of Kuwait Labour Law No. 6/2010 defines a tiered accumulation rate:
After 5 years: 30 days' salary × each year beyond 5
Maximum cap: 18 months of basic salary
| Service Period | Rate per Year |
|---|---|
| Year 1 to 5 | 15 days' basic salary |
| Year 6 and beyond | 30 days' basic salary |
| Maximum total payout | 18 months' basic salary |
Step 3 — Resignation Deductions (Article 53)
If the employee resigns, Article 53 applies a deduction scale based on years of service:
| Years of Service | Entitlement on Resignation |
|---|---|
| Less than 3 years | 0% — no gratuity |
| 3 to 5 years | 50% of calculated gratuity |
| 5 to 10 years | 66.7% of calculated gratuity |
| 10 years or more | 100% full gratuity |
Step 4 — Unused Leave Encashment (Article 70)
Article 70 entitles every employee to cash payment for unused annual leave days. This is separate from gratuity and is NOT subject to the 18-month cap.
Final Total Formula
⚠️ Gratuity is always calculated on BASIC salary only. Housing, transport, food allowances, and other benefits are excluded per Kuwait Labour Law.
Legal Basis & Sources
All calculations are based on the following official Kuwait legal references:
- Kuwait Labour Law No. 6 of 2010 (Private Sector)
- Article 51 — End-of-service indemnity calculation formula
- Article 53 — Resignation indemnity deductions
- Article 70 — Unused annual leave encashment
- Kuwait Public Authority for Manpower (PAM) — pam.gov.kw
Last verified against Kuwait Labour Law: May 2026.
Legal Disclaimer
KuwaitGratuity.com provides this calculator as a free educational and estimation tool only. Results are not legally binding and may vary based on individual employment contracts, court interpretations, or PAM arbitration decisions.
For disputes, consult a licensed Kuwait labour lawyer or file a complaint with the Kuwait Public Authority for Manpower (PAM).
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