Licensed by the Kuwait Bar Association

Sunday to Thursday, 8 am to 5 pm

End-of-service pay: how it is calculated in 2026

End-of-service pay is the question we are asked most by both employers and employees. The rules for the private sector come from the Labour Law, Law No. 6 of 2010, and the calculation is simpler than most people expect.

The basic calculation

For an employee paid monthly, the indemnity is fifteen days’ pay for each of the first five years of service, and one month’s pay for each year after that, up to a ceiling of one and a half years’ pay. Part-years count in proportion.

Three details that change the number

Which pay is used. The calculation uses the last pay received, so what counts as part of it matters.

How the contract ended. Resignation, termination and the end of a fixed term are treated differently.

Service records. Keep the start date, contract changes and final pay slip. Most disputes are about the facts, not the formula.

If the numbers do not match, ask for the calculation in writing before signing a final settlement.

Sample article for the Tothiq Professional demo. It is not legal advice.

Leave a Reply

Your email address will not be published. Required fields are marked *