Kuwait Indemnity Calculator 2025: Fast & Accurate Online

The Kuwait Indemnity Calculator calculates the end-of-service bonus every Kuwait employee is entitled to upon the end of their work contract. This calculation is based on the amount of years the employee has worked, and their range of pay. Other conditions also factor in when it comes to indemnity pay, and we will be discussing them all in this article. Know how to calculate your indemnity pay, the legal framework guiding it, and eligibility criteria. 

Kuwait Indemnity Calculator

The following calculator allows you to easily calculate your Indemnity in Kuwait According to the Kuwaiti Labor Law:

How to Use a Kuwait Indemnity Calculator

Here’s how to use a Kuwait indemnity calculator.

• Go to the Kuwait indemnity calculator.
• Click the calendar icon in the “Start Date” box to enter the date you started working.
• Enter the date you stopped working in the “End Date” box.
• Enter your monthly salary.
• Input the number of unpaid leave days.
• Click “Calculate Indemnity.”

Your indemnity will be calculated from the provided information and displayed to you.

What is Kuwait Labour Indemnity?

In Kuwait, indemnity is an end-of-service pay or compensation awarded to employees at the end of their service. This is applicable to all private, domestic, or expatriate employees who have met the conditions for the bonus, which can vary depending on salary, regular allowances, years of service, and unpaid leaves.

How to Calculate Kuwait Indemnity?

to calculate your indemnity, you’ll need to factor in your basic salary and period of service. These information will serve as components of your Kuwait indemnity calculation through the following methods:

Determine Your Daily Wage

Divide your final monthly salary by 26 (the typical number of working days in a Kuwaiti month).

• Example:
  If your monthly salary is KWD 520, then
  Daily Salary = 520 ÷ 26 = KWD 20

Calculate Indemnity for the First 5 Years

For each full year during the first five years, you are generally entitled to 15 days’ pay.

• Formula:
  Indemnity (Years 1–5) = (Daily Salary × 15) × (Number of Full Years, up to 5)

Calculate Indemnity for Additional Years Beyond 5

For each full year of service beyond the first five years, the entitlement typically increases to 30 days’ pay per year.

• Formula:
  Indemnity (Exceeding Years) = (Daily Salary × 30) × (Number of Years beyond 5)

Calculate for Partial Years (Months/Days)

If your total service includes a partial year, calculate a proportional amount:

• For service under 5 years, calculate using the 15-day rate.
• For service over 5 years, calculate using the 30-day rate.
  •  Example:
    If you worked 3 additional months past full years, your monthly indemnity portion would be:
    (3/12) × (Daily Salary × applicable day rate)

Include Unused Paid Leave

Multiply any accrued but unused paid leave days by your daily salary and add this to the total indemnity. 

• Formula:
  Leave Amount = Daily Salary × (Number of Unused Leave Days)

Total Indemnity Calculation

Combine all components to get the total indemnity.

• Overall Formula = First 5 Years Indemnity + Exceeding Years Indemnity + Partial Year Indemnity + Paid Leave Balance Amount.

Kuwait Indemnity Calculation Example

Suppose an employee worked 7 full years plus an additional 3-month partial year, with a daily salary of 20 KWD and 10 unused leave days. Here’s how to calculate their indemnity compensation:

• Indemnity (First 5 Years) = 20 × 15 × 5 = KWD 1,500
• Indemnity (Years Beyond 5) = 20 × 30 × 2 = KWD 1,200
• Indemnity (Partial Year) = (3/12) × (20 × 30) = KWD 150
• Unused Leave Amount = 20 × 10 = KWD 200

total Indemnity = 1,500 + 1,200 + 150 + 200 = KWD 3,050

How to Calculate Kuwait Indemnity for Government Workers

to calculate indemnity for Kuwaiti government workers, follow the formula in the table below:

For Employees Not Eligible for Pension 

For Employees Eligible for Pension

Calculate Indemnity in Kuwait for Domestic Workers

According to Kuwaiti labor law, domestic workers in Kuwait are entitled to an end-of-service gratuity equivalent to one full month’s wages for each year of service, based on the wages documented in the employment contract. It’s worth noting that the gratuity is due upon termination of the domestic worker’s employment contract, not before the end of the contract period.

Causes for Deductions of Indemnity

There are cases where your indemnity may be rightly deducted under Kuwait labor laws due to certain reasons. Here are some causes for deductions of indemnity and the deduction value:

• Employee resigns after working for more than 3 years but not up to 5 years: half of their indemnity will be deducted.
• Employee resigns after working for more than 5 years but not up to 10 years:  the employee will receive only two-thirds of the indemnity fund.
• Employee resigns after more than 10 years of work: they are entitled to claim full indemnity.
• Employees with outstanding loans from the company: may have their debt deducted from their indemnity.

Conditions for Loss of Indemnity 

There are certain scenarios where an employee may not be eligible for indemnity under Kuwait labor laws. Here are the conditions for indemnity loss:

• Employee causes a serious loss to the company, they may not be entitled to indemnity.
• Employees who have worked for less than 3 months for a particular entity are not eligible for indemnity.
• Employee is discovered to have secured the job through fraudulent or deceitful means, then they may not receive indemnity.
• Employees dismissed dishonorably are entitled to indemnity.
• Employees who do not follow the resignation process as stated in their employment contract may lose their indemnity claim.

Benefits of Using a Kuwait Indemnity Calculator

The Kuwait indemnity calculator can be beneficial to both employers and employees. Here are reasons to use indemnity calculators:

• Accurate Estimations: Kuwait indemnity calculators are known to provide accurate results based on inputs. It offers a more reliable method when compared to manual calculations.
• Quick and easy: You only need to provide basic information such as employment length, salary, and total days of unpaid leave for a Kuwait indemnity calculator to generate an indemnity amount in less than a second.
• Accessibility: Being an online tool, a Kuwait indemnity calculator can be accessed from anywhere, even from the comfort of your room. Hence, you can easily calculate your indemnity anywhere, anytime.

Conclusion

You can easily calculate your indemnity using the Kuwait Indemnity Calculator or by following the formula provided in the article. Should your claim to indemnity be disputed by your employer, seek legal assistance to protect your rights and resolve the situation.