HR and payroll in the Gulf

How is the end-of-service award calculated in Kuwait?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

Under Article 51 of Private Sector Labor Law No. 6 of 2010, a monthly paid worker is entitled to 15 days' wage for each of the first five years. Each year after that earns a month's wage, capped at a year and a half of wages. The award is calculated on the last wage including recurring allowances, and the daily wage is the monthly wage ÷ 26.

Step by step

  1. 1

    Set the wage used

    The last monthly wage including recurring allowances.

  2. 2

    Work out the daily wage

    Monthly wage ÷ 26.

  3. 3

    The first five years

    15 days × the daily wage for each year.

  4. 4

    After five years

    A full month's wage for each additional year.

  5. 5

    Apply the cap

    The award cannot exceed 18 months of wages.

  6. 6

    Check why service ended

    On resignation from an open-ended contract, the rates in Article 53 apply.

A common mistake

Dividing the monthly wage by 30 instead of 26 to get the daily wage lowers the award with no legal basis.

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