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
Unlike Saudi Arabia, Kuwait does not reduce your EOSB if you resign. Both resignation and termination use the same 15-days and 30-days formula, provided you have completed at least one full year of service.
What counts as basic salary?
Only your contractual basic salary is included. Housing allowance, transport allowance, and all other benefits are excluded from the calculation under Articles 51–54.
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?
No. Housing, transport, and other allowances are excluded. Only your contractual basic salary is used to calculate the daily rate under Kuwait Labour Law Articles 51–54.
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?
Yes, if you have completed at least one full year of service. Under Labour Law No. 6 of 2010, resignation and termination by the employer are calculated the same way — there is no reduced indemnity for voluntary resignation.
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?
It is calculated on basic salary only. Housing allowance, transport allowance, and all other benefits are excluded from the indemnity calculation under Articles 51–54.
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
Does resignation reduce your EOSB? No — here's why
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
📅Resignation Timing Tool
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⚖️ Legally accurate
Based on Kuwait Labour Law No. 6/2010, Articles 51–54. Formula verified against official text.