End-of-Service Indemnity
Written in plain language for general understanding. This is educational content, not legal advice. Based on Kuwaiti national legislation, Amiri decrees, and ministerial decisions.
Kuwaiti National Law
What is this right?
When your employment ends in Kuwait, you are entitled to an end-of-service indemnity (gratuity) based on your length of service:
- First 5 years: 15 days of pay for each year of service.
- After 5 years: 1 full month of pay for each additional year.
- The total indemnity is capped at 1.5 years of pay (18 months).
- This applies to both Kuwaiti and expatriate workers.
- If you resign before completing 3 years, you get half the indemnity. After 3 but less than 5 years, you get two-thirds. After 5+ years, you get the full amount.
When does it apply?
- Your employment ends for any reason — resignation, termination, contract expiry, or retirement.
- You have completed at least some period of service with your employer.
- You work under the Private Sector Labour Law (not domestic workers or certain other excluded categories).
What should you do?
- Calculate your expected indemnity before leaving — use your basic salary (excluding allowances unless contractually included).
- Request a written breakdown from your employer showing how the indemnity was calculated.
- If your employer refuses to pay, file a complaint with MSAL or go to the Labour Court.
- Collect your indemnity before leaving Kuwait if possible — pursuing it from abroad is harder.
What should you NOT do?
- Do not sign any final settlement without verifying the calculation yourself.
- Do not assume allowances are included — the indemnity is based on basic salary unless your contract says otherwise.
- Do not leave Kuwait without collecting your indemnity or filing a complaint — it becomes very difficult to claim later.
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