End-of-Service Indemnity in Kuwait Under Law No. 6 of 2010

How the Kuwaiti private-sector labour law calculates indemnity, and the cap of eighteen months' pay.

The law

Article 51 of Law No. 6 of 2010 on Labour in the Private Sector governs end-of-service indemnity.

The calculation for monthly-paid workers

• 15 days' wage for each of the first five years;
• one month's wage for each year after that;
• total indemnity may not exceed one and a half years' wages.

Workers paid daily, weekly, hourly or by piece receive 10 days' wage for each of the first five years and 15 days for each year after that, subject to the same cap.

Resignation

Where the worker resigns, the law reduces the indemnity according to length of service, with the full amount due after long service. Check the exact scale before resigning.

Wage basis

Indemnity is calculated on the last wage received, and part-years are counted proportionately.

Claims

Complaints go first to the Labour Relations Department of the Public Authority for Manpower, then to the Labour Circuits of the courts.

Ask LexArab

LexArab can calculate your indemnity and explain the effect of resignation on it. General information, not legal advice.