I am writing this in the simplest terms possible (and not in legal jargon) because I want to make the law simple and understandable by all.
Here is a simple guide to calculating your termination indemnity (for private sector employees):
|
Payment Method |
Who terminated the contract |
Years Worked |
Days Paid |
|
monthly |
you were terminated |
Less than 5 years |
15 days per year |
|
monthly |
you were terminated |
more than 5 years |
one month per year |
|
monthly |
you terminated the contract |
3 to 5 years |
1/2 of 15 days per year |
|
monthly |
you terminated the contract |
5 to 10 years |
2/3 of one month per year |
|
monthly |
you terminated the contract |
more than 10 years |
one month per year |
|
daily or weekly |
you were terminated |
Less than 5 years |
10 days per year |
|
daily or weekly |
you were terminated |
more than 5 years |
15 days per year |
|
daily or weekly |
you terminated the contract |
3 to 5 years |
1/2 of 10 days per year |
|
daily or weekly |
you terminated the contract |
5 to 10 years |
2/3 of 15 days per year |
|
daily or weekly |
you terminated the contract |
more than 10 years |
15 days per year |
Please note the following:
– You are being paid by days. Your end of service is an x amount of working days. So it is important how to calculate how much your day is worth. For those paid on a monthly basis you divide your salary by 26 even if you only work 20 days a month (unless your policies and regulations at work are different, giving you less working days a month)
– If you are Kuwaiti, you still deserve end of service benefits, but your social security amounts accured towards your company will be deducted.
– You have one year since the day you leave work to ask for your end of service benefits.
– If you are ending the contract then I am assuming you have an indefinite contract
If you are having any issues with your employer, please email me [email protected]. I have made a promise to myself to personally get back to everyone within 24 hours (unless it is the weekend)!
Post by Fajer Ahmed – Legal Counsel
The legal opinions expressed in this post are those of the author Fajer. Opinions expressed by Mark or any other writer on mark248am1.wpenginepowered.com are those of the individual’s and in no way reflect Fajer’s opinion.
32 replies on “Kuwait Law: Termination Indemnity/End of Service Benefits”
For more than 5 years, isn’t it 15 days for the first 5 years, plus 1 month for every additional year? The way I understand the chart is once you reach 5 years, you get 1 month pay per year. So 6 years service = 6 months pay, not 2.5 plus 1?
Also, how about Kuwaitis with the new law? Does the company have the right to deduct whatever has been paid towards the PIFFS?
based on my experience if its more than 5 years its 1 month for every year and not 15 days for first 5 years and then 1 month for every year over that. So yes 6 years of service u get 6 months pay.
Thanks.
Hi Mark,
I am currently in this situation and the calculation provided to me is the same as shared in MK’s post.
I will complete 6 years before the last day of my notice period and the calculation given is 15 days for the first 5 years and 30 days for the 6th year.
Appreciate if you would be able to provide a link to the actual law stating otherwise so I can take it back to the company and ask for my right.
Same question:
how about Kuwaities with the new law? Does the company have the right to deduct whatever has been paid towards the PIFFS?
Another question:
According to law, what is the maximum number of “leave days in my balance” I can get money for if my contract is terminated?
Thank you so much
I had that question last time, Fajer answered it in this post already:
“– If you are Kuwaiti, you still deserve end of service benefits, but your social security amounts accured towards your company will be deducted.”
Also labor law is 60 days but I’m not a lawyer
When you say 1 month salary, is it the total salary you were getting or basic salary only? A salary is usualy made up of basic amount + housing allowance + transportation allowance or telephone etc…please if you can clarify
https://www.kuwaitup2date.com/indemnity/
Indemnity Calculator
Is the indemnity calculated according to the last salary given by the company? (What if someone worked in a place for 10 years but had a salary increase. Few times over that span).
For the situation let’s say a salary increase happened on the fifth of the ten years.
Would the first 5 of the 10 months be paid according to the salary at the time of those first five years?
Final salary, that’s why the longer you stay in a company the more hesitant they get to give you a raise
Why am I being terminated? I didn’t even do anything!
As we discussed in the morning, due to budget cuts we’ve had to let you go. I’m sorry, now please leave already.
But did you really have to rub it in my face by posting about it on your freaking blog? I’m gonna sue. Now how can I get a hold of Fajer?
Dear Mark & Fajer,
Please recheck the indemnity calculation table (row 2 & 5). If you get terminated after 10 years of service, you will not get 1 month salary for each year of service, rather you will get 15 days salary for the first 5 years and 1 month salary from the 6th year onwards. Correct me if I’m wrong.
Please mention what the law says…not your own practice. A company can have an indemnity policy to pay more than what is mandated in labor law but can’t pay less than what is mandated. If your company has a policy of 1 month indemnity doesn’t mean that the law mandates the same.
For any number of years you worked e.g. 5 years, will it be including annual paid leaves days or it should be 5 years worked excluding annual paid leaves days.
In later case, if we have worked for 5 years and 5 months , then our actual no. of years counted will be 5 years. is it inline with labor law ?
Fajer, thanks for the useful information. What about if an employee resigns? What are the indemnity rules for employees who resign after 1 year, 2 years, etc?
How About working for 2yrs more and they forcing terminate me..my salary bracket was 250 but im getting monthly was 300 kd. How much the calculation pls…
Hi I am working in a pvt company from Nov 4 2017 onwards and I am planning to resign this August. As per the contract 3 months notice to be served. My question is if I resign in August will I be eligible for the indemnity.
If my company would like to extend its contract over 5 years and opt to finish it in just 3 months, does that mean: 15 days for first 5 years + (3/12 X 1 month) = would be my ESB? Please clarify. Thanks.
How about i finished my 10 years in my company and i want to resign and go home for good how much the imdemity they should give is it full?
I finished my contract last nov.11 and i extend 1 month as domestic helper…do the employer force me to work?
Hi,
I am terminated immediately and saying t ithey will pay the 3 months notice period do i get that 3 months in bulk if I decided to cancel my visa for good, i work foe that company for the period of 9 years, do i get also the end of service benwfit or indemnity… My salary is 490KD and i have car allowance of 90KD, did the allowances included on the computation?
Hi,
Good day..
I just want to know something regarding the situation i got from my company…
I am terminated immediately and saying they will pay the 3 months notice period do i get that 3 months in bulk if I decided to cancel my visa for good, i work for that company for the period of 9 years, do i get also the end of service benefits or indemnity? My salary is 490KD and i have car allowance of 90KD, did the allowances included on the computation? Please Help…
Hi how about for household help do kuwait also have program like this? And is working 18 hours a day is legal for household help?
I am reaching out to inquire regarding the subject. The owner informed that he will close the company (indefinitely in case he could be able to continue business) and that he requests all the office staff to submit our resignation by end of the month to serve 3 months. In case, he would be able to continue with the business, he said that the notice will be disregarded and business as usual. We are not willing to resign but he is requiring us to submit a resignation under the terms of company closure.
Question: Since the announcement is company closure should we demand that he sends us a termination 3month-notice instead of us submitting resignation? If he insists that we submit resignation, will we still have the right to demand our entire end of service indemnity and unused leave with an unavailed yearly ticket allowance? The service is 4 years and 5 months.
Hi! Good day!
I want to know my end of service benefit. They terminate my contract due to below budget of the company. I worked to the company since 2008 July 16 till 2020 July 12. Do I receive 12 months salary? If they didn’t pay as per the law can I complain to labor department during this time? Thank you!
Hi,
If an employee was terminated and company asked him not to work, the gratuity will be calculated till end of notice period or till last working day? Thanks you!
Hello Sir,
I have been recently terminated by my company due to downsizing. My current salary is 350(basic)+50 Transport allowance = 400KD. My joining date is 19-May-2014 and last working day is 07- Dec-2020. Can you advice my final settlement amount. appreciate your reply.
Note:- in our company they calculate the indemnity of full salary, ie, 400 KD.
Thanking You
I joined on 1st March 2018 last working day was 25th Feb 2021.
Will this will be considered as 3years?
– annual leave balance i should get in my indemnity?
– Air ticket?
– Bonus?
Hi sir, how about the household indemnity? Im 4 years now her to serve my employer then next month i want go home but he dont give me my indemnity?
Dear Sir/Madam,
Firstly, I would like to thank you for your legal advice to expats.
I have a query regarding Indemnity Calculation. I went to India on annual leave last year, but due to the closure of Kuwait airport I was stuck up in India for 9 months. Recently resumed my work in the same company. Now company HR said to me that the 9 months stuck period will not be calculated in indemnity and also annual leave salary will be calculated accordingly. From October 2015 to till date(6years) I have been with the same company. Please advise me, as per government rules, whether those 9 months shall be considerable or not in calculating the indemnity.
Regards,
Vamshi Krishna