Kuwait EOSB Calculator 2026 — How It Works
End-of-service benefits (EOSB) — often called indemnity — in Kuwait are governed by Labour Law No. 6 of 2010, Articles 51–54. Eligible employees receive a lump sum based on basic salary and years of service when employment ends.
The exact formula
- Daily rate = Basic salary × 12 ÷ 365
- Under 1 complete year of service = zero entitlement
- Years 1–5 = 15 days of basic pay per year
- After 5 years = 30 days of basic pay per year
- Cap = 18 months of basic salary
Worked example: KWD 400 basic salary, 4 years of service = (400 × 12 ÷ 365) × 15 × 4 = KWD 789.04
Resignation vs termination in Kuwait
Termination and resignation are not calculated the same way. A terminated employee receives the full Article 51 award after just 1 year of service. A resigning employee's indemnity is reduced under Article 53: nothing before 3 years of service, half (50%) of the full award from 3–5 years, two-thirds (66.7%) from 5–10 years, and the full amount from 10 years onward — identical to termination.
Which salary counts — basic or total?
This isn't fully settled. Most sources describe the calculation as using contractual basic salary only, with housing allowance, transport allowance, and other benefits excluded — but this isn't confirmed by an independently verifiable primary source under Articles 51–54, and some readings of the law's broader "remuneration" definition apply it more widely. Confirm your specific case with PAM or a labour lawyer.
Frequently asked questions
How is Kuwait EOSB calculated in 2026?
Your daily rate is basic salary × 12 ÷ 365. For each of the first five years you earn 15 days of that rate per year; after five years you earn 30 days per year. The total cannot exceed 18 months of basic salary. You need at least one complete year of service to qualify.
Does Kuwait EOSB include allowances?
This isn't fully settled. Most sources describe Kuwait EOSB as calculated on basic salary only, with housing, transport, and other allowances excluded from the daily rate under Articles 51–54 — but this isn't confirmed by an independently verifiable primary source, and some readings of the law's broader 'remuneration' definition apply more widely. Confirm your specific case with PAM or a labour lawyer.
What is the maximum EOSB in Kuwait?
Total end-of-service indemnity is capped at 18 months of your basic salary, regardless of how many years you have worked.
Do I get EOSB 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 of the full award, from 5 to 10 years two-thirds, and after 10 years you receive the full amount — identical to termination. Termination itself is unaffected by these brackets: a terminated employee receives the full Article 51 award after just 1 year of service.
When must the employer pay EOSB in Kuwait?
The employer must pay your end-of-service indemnity as part of your final settlement when the employment contract ends, together with any other lawful entitlements owed to you.
Can my employer reduce my Kuwait EOSB?
Only lawful deductions are permitted — for example, amounts you owe the employer under the law or a court order. Your employer cannot make arbitrary or unexplained reductions to your indemnity.
What is the minimum service to qualify for Kuwait EOSB?
You must complete at least one full year of continuous service. If you leave before completing one year, you are not entitled to any end-of-service indemnity under Kuwait Labour Law.
Is Kuwait indemnity calculated on basic salary or total salary?
This isn't fully settled. Most sources describe Kuwait indemnity as calculated on basic salary only, with housing allowance, transport allowance, and other benefits excluded under Articles 51–54 — but this isn't confirmed by an independently verifiable primary source. Confirm your specific case with PAM or a labour lawyer before relying on either reading.
How we calculate this
Last updated: July 2026 · Legal reference: Kuwait Labour Law No. 6 of 2010, Articles 51–54
GulfWise calculations are based on the published text of Kuwait, UAE, and Saudi labour law. Where sources disagree or a primary-source text isn't independently verifiable online, we say so directly rather than presenting one reading as settled fact — and point you to PAM (Kuwait), the MOHRE (UAE), or a qualified labour lawyer to confirm your specific case. Every published figure needs a primary source or two or more independent secondary sources; if neither exists, we hedge rather than guess.
This page is for informational purposes only and does not constitute legal advice. Where GulfWise connects you with a labour lawyer (for example via WhatsApp), that lawyer is an independent third party — GulfWise does not provide legal advice itself and is not a party to that relationship. Always verify your specific situation with PAM, the relevant labour ministry, or a qualified labour lawyer before relying on any figure on this site.
Other GulfWise tools
Kuwait EOSB guides
Kuwait EOSB Complete Guide
Formula, thresholds, cap — Articles 51–54 explained
Kuwait Indemnity Formula Explained
Why ÷365 is correct (not ÷26 or ÷30)
Kuwait Gratuity After Resignation
How Article 53 reduces your EOSB by tenure — with worked examples
Does Housing Allowance Count in Kuwait EOSB?
What is and isn't included in the calculation base
Employer Not Paying EOSB?
Your legal options and how to file a complaint
Can My Employer Reject My Resignation?
Kuwait law on resignation rights and EOSB
Plan your exit
CalResignation Timing Tool
Find the best date to resign
Legally accurate
Based on Kuwait Labour Law No. 6/2010, Articles 51–54. Formula verified against official text.