Kuwait Gratuity After Resignation: What You're Actually Owed (2026)

Do I get gratuity if I resign in Kuwait?

It depends on your years of service. Under Article 53 of Labour Law No. 6 of 2010, resigning before completing 3 years forfeits your indemnity entirely. From 3 to 5 years you receive half (50%) of the full Article 51 award, from 5 to 10 years two-thirds (66.7%), and after 10 years you receive the full amount — identical to termination.

What is the minimum service required for Kuwait gratuity?

You must complete at least 1 full year of continuous service to be considered for any indemnity at all. But if you resign rather than being terminated, Article 53 requires an additional threshold on top of that: no indemnity is payable for a resignation before 3 full years of service — see the next question for the full bracket schedule.

How is Kuwait gratuity calculated after resignation?

First calculate the full Article 51 award: daily rate = basic salary × 12 ÷ 365, then 15 days per year for years 1–5 and 30 days per year beyond that. Then apply the Article 53 resignation reduction to that award: 0% under 3 years, 50% from 3–5 years, 66.7% from 5–10 years, and 100% (no reduction) after 10 years.

Does Kuwait gratuity include allowances?

This isn't settled. Most sources read Kuwait Labour Law No. 6 of 2010 as basing indemnity on basic salary only, with housing, transport, and other allowances excluded — but the law's own definition of 'remuneration' leaves room for a broader reading. Confirm your specific case with PAM or a labour lawyer rather than assuming either reading.

What happens at the 5-year mark in Kuwait?

Two things change at 5 years, and it's worth separating them. First, the underlying Article 51 base rate doubles: years 1–5 earn 15 days per year, year 6 onward earns 30 days per year. Second, if you're resigning, the Article 53 reduction bracket also improves at the same point, from 50% to 66.7% of that base. Both changes make 5 years a major milestone.

Can my employer reduce my gratuity because I resigned?

Yes — but only according to the fixed Article 53 schedule, not at their discretion. Resignation legitimately reduces (or, under 3 years, eliminates) your indemnity based on your completed years of service. This is built into the law itself, not something an employer chooses to apply. If your employer's figure doesn't match the bracket for your years of service, that's worth checking against the calculator above.

When must my employer pay gratuity after resignation?

Your employer must settle all end of service dues upon termination of the contract. Delays can be reported to PAM (Public Authority for Manpower).

What is the cap on Kuwait gratuity?

Kuwait Labour Law caps total indemnity at 18 months of basic salary for the private sector, regardless of total years served.