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
Set the wage used
The last monthly wage including recurring allowances.
- 2
Work out the daily wage
Monthly wage ÷ 26.
- 3
The first five years
15 days × the daily wage for each year.
- 4
After five years
A full month's wage for each additional year.
- 5
Apply the cap
The award cannot exceed 18 months of wages.
- 6
Check why service ended
On resignation from an open-ended contract, the rates in Article 53 apply.
Dividing the monthly wage by 30 instead of 26 to get the daily wage lowers the award with no legal basis.
- kuwait end of service indemnity private sector
- kuwait labor law 6 of 2010 end of service