Kuwait Indemnity Calculator
The following calculator can be used to calculate Labor indemnity in Kuwait according to the Labor Law:
What is Labor indemnity in Kuwait
Indemnity is a bonus that an employee in Kuwait is entitled to at the end of his service according to the current labor law. It is calculated based on the duration, and may sometimes differ from one employee to another depending on the reason for leaving the service, because there are several cases in which a private sector employee is deprived of this bonus.
Indemnity in the new Kuwaiti labor law
The current labor law in Kuwait clarified everything related to indemnity in Section 3, which began with Article 41 and continued until Article 54, which means that it takes 14 articles from the law, and this included determining the method of calculating the bonus and the cases in which the employee is deprived of it.
For whom is indemnity applicable in Kuwait
Indemnity in Kuwait includes all employees working in the private sector without exception except in cases specified by law and in which the employer is allowed to dismiss the worker without being entitled to any compensation or rewards. The value of indemnity for employees in the working sector is determined according to the Civil Service Law, not according to the Labor Law.
How to Calculate Your Kuwait Indemnity
Indemnity is calculated in Kuwait based on the length of service in addition to many other details, so that the worker gets his full right based on the number of years, months and days. The following is the method for calculating indemnity:
Calculate Kuwait Indemnity for the First Five Years
To calculate Kuwait indemnity for the first five years, follow these simple steps:
- Indemnity for the First Five Years = ( Daily Salary × 10 ) × Number of Years
Calculate Kuwait Indemnity for Years Exceeding Five
To calculate Kuwait indemnity for years exceeding five, Here’s how you can do it:
- Indemnity for Years Exceeding Five = ( Daily Salary × 15 ) × Number of Exceeding Years
Calculate Kuwait Indemnity for months and days beyond full years
To calculate Kuwait indemnity for months and days beyond full years, Just follow these easy steps:
- For service less than 5 years:
- Monthly Indemnity = ( Number of Months ÷ 12 ) × ( Daily Salary × 10 )
- Daily Indemnity = ( Number of Days ÷ 365 ) × ( Daily Salary × 10 )
- For service more than 5 years:
- Monthly Indemnity = ( Number of Months ÷ 12 ) × ( Daily Salary × 15 )
- Daily Indemnity = ( Number of Days ÷ 365 ) × ( Daily Salary × 15 )
Calculate Paid Leave Balance for Indemnity in Kuwait
To calculate paid leave balance for indemnity in Kuwait, Here’s what you need to do:
- Paid Leave Balance Amount for Indemnity = ( Number of Paid Leave Days ) × Daily Salary
Calculate Total Indemnity in Kuwait
To calculate Total indemnity in Kuwait, Here’s how to do it:
- Total Indemnity = First 5 Years Indemnity + Exceeding Years Indemnity + Monthly Indemnity + Daily Indemnity + Paid Leave Balance Amount
Benefits of using Kuwait Labor Indemnity Calculator
There are several benefits to using indemnity in Kuwait; it helps in knowing the exact value very easily and does not require doing a lot of manual calculations, after adding the basic data on which the indemnity calculation depends according to the current labor law in Kuwait.
How to use Kuwait Labor Indemnity Calculator
Here’s how to use Kuwait labor indemnity calculator:
- Go to the indemnity calculator according to the labor law.
- Rely on the calendar to add the start date of work.
- Determine the end date of work using the available calendar.
- Enter the salary value in the designated field.
- Write the number of Unpaid Leave Days.
- Click on the Calculate Indemnity icon.
Kuwait Indemnity Calculation Elements
Indemnity calculation in Kuwait is based on the following elements:
- Number of years of service: The calculation of indemnity in Kuwait varies greatly based on the number of years of service, and the employee may not be entitled to the full bonus if the contract is terminated by him before 10 years of service with the same employer.
- Monthly salary value: There is no doubt that indemnity increases in Kuwait with the increase in the employee’s monthly salary, while the value decreases with the decrease in the salary of the employee working in the private sector.
- Reason for termination of employment contract: The value of indemnity sometimes varies depending on the reason for the termination of the employment contract, and the labor law in force in Kuwait stipulates many cases in which the employee is deprived of the bonus, completely or partially.
- Number of paid leave days: The employee is entitled to indemnity for the days of paid leave that he did not receive according to the Kuwaiti Labor Law, and therefore the number of leave days greatly affects the value of the bonus.
Example of calculating indemnity according to the Kuwaiti Labor Law
Let’s say Masod worked for a company in Kuwait for 6 years, 8 months, 26 days. His monthly salary is 1,700 KD and he has 19 days of unused paid leave. How much is Indemnity worth?
- Daily Salary = 1,700 KD ÷ 26 Days = 65.38 KD
- Indemnity for the First Five Years = ( 65.38 KD × 10 ) × 5 Years = 3,269 KD
- Indemnity for Years Exceeding Five = ( 65.38 KD × 15 ) × 1 Year = 980.7 KD
- Monthly Indemnity = ( 8 Months ÷ 12 Months ) × ( 65.38 KD × 15 ) = 653.8 KD
- Daily Indemnity = ( 26 Days ÷ 365 Days ) × ( 65.38 KD × 15 ) = 69.86 KD
- Paid Leave Balance Amount for Indemnity = ( 19 Days ) × 65.38 KD = 1,242.22 KD
- Total Indemnity = 3,269 KD + 980.7 KD + 653.8 KD + 69.86 KD + 1,242.22 KD = 6,215.58 KD
Cases of deprivation of indemnity in Kuwait
The following list shows cases of deprivation of indemnity in Kuwait:
- If the labourer commits a fault that resulted in a gross loss to the employer.
- If the labourer discloses any secrets related to the firm he works for which caused or could have caused certain losses to it.
- If it is evident that the labourer has used any fraudulent act or cheating to obtain the work.
Cases of deducting part of the indemnity in Kuwait
The following table shows cases of deducting part of the indemnity in Kuwait:
| Duration of service | Indemnity deduction |
| If the worker terminates the unlimited period contract from his own part, and the term of his service is not less than 3 years and did not complete 5 years | half of indemnity is deducted. |
| If the worker terminates the unlimited period contract from his own part, and the term of his service is not less than 5 years and did not complete 10 years | One third of indemnity is deducted. |
| If the worker terminates the unlimited period contract from his own part, and the term of his service is not less than 10 years | No any deduction from indemnity |
How to calculate indemnity in Kuwait for domestic workers
The domestic worker in Kuwait is entitled to indemnity equivalent to one full month’s wages for each year of service according to the wage documented in the employment contract. The gratuity is due if the domestic worker terminates the employment contract, which means that he is not entitled to the gratuity before the end of this period.
How to calculate indemnity in Kuwait for the government sector
The following table shows how to calculate indemnity in Kuwait for the government sector:
| Category | Indemnity Calculation Method | |
| About the first 5 years | Those who do not deserve a pension | Pension settlement salary×12×10% ×5 |
| About the second 5 years | Those who do not deserve a pension | Pension settlement salary×12×12% ×5 |
| About the third 5 years | Those who do not deserve a pension | Pension settlement salary×12×15% ×5 |
| For the years following the first 15 years of service | Those who do not deserve a pension | Pension settlement salary×12×20% ×5 |
| Male pensioners up to the age of 55 | who are entitled to a pension | One full month’s salary for each year of subscription, provided that it does not exceed 18 months. |
| Female pensioners up to the age of 50 | who are entitled to a pension | One full month’s salary for each year of subscription, provided that it does not exceed 18 months. |
| Male pensioners up to the age of 56 | who are entitled to a pension | Salary of 19 months |
| Female pensioners up to the age of 51 | who are entitled to a pension | Salary of 19 months |
| Male pensioners up to the age of 57 | who are entitled to a pension | Salary of 20 months |
| Female pensioners up to the age of 52 | who are entitled to a pension | Salary of 20 months |
| Male pensioners up to the age of 58 | who are entitled to a pension | Salary of 21 months |
| Female pensioners up to the age of 53 | who are entitled to a pension | Salary of 21 months |
| Male pensioners over the age of 58 | who are entitled to a pension | Salary of 21 months |
| Female pensioners over the age of 53 | who are entitled to a pension | Salary of 21 months |
Questions & Answers
How is indemnity calculated in Kuwait?
Indemnity in Kuwait is based primarily on length of service.
Does a government employee deserve indemnity in Kuwait?
Is a government employee really entitled to indemnity in Kuwait, but the method of calculating it is different from the private sector?
How to calculate the end-of-service in Kuwait?
End-of-service in Kuwait is based on length of service according to the applicable labor law.
Is a domestic worker entitled to indemnity in Kuwait?
Yes, domestic workers are entitled to indemnity in Kuwait according to the laws regulating them.
When is the indemnity deducted in Kuwait?
Indemnity is deducted in Kuwait if the worker terminates the open-ended contract before 10 years of service.
What if the employee does not get indemnity in Kuwait?
If the worker does not get indemnity in Kuwait, he must file a complaint with the Public Authority for Manpower.
Does an employer have the right to deprive an employee of indemnity in Kuwait?
The employer has the right to deprive the employee of indemnity in Kuwait in some cases stipulated by the Labor Law.
Is indemnity equal for all employees in Kuwait?
No, the value of indemnity varies from one worker to another based on the length of service and salary.
Does the worker have the right to file an objection to being deprived of indemnity in Kuwait?
Yes, the worker has the right to file an objection to his indemnity in Kuwait through the Public Authority for Manpower.