End-of-service is where most disputes start. Here is exactly how the law calculates it.
The rule (Art. 51)
- Monthly-paid: 15 days' wage for each of the first 5 years, then 1 month's wage for each later year. The cap is 1.5 years' wage.
- Daily, weekly, hourly or piece-rate: 10 days a year for the first 5 years, then 15 days a year. The cap is 1 year's wage.
- Part years count pro rata.
Which wage?
- EOS uses the last wage (Art. 62) and includes applicable recurring wage components; it is not invariably based on basic pay alone (Art. 55).
- Calculation method: Daily wage = monthly wage ÷ 26. Art. 67 divides salary by working days, excluding weekly rest days.
Full, partial or zero?
| Situation | Share |
|---|---|
| Employer termination (except Art. 41(a) forfeiture grounds); fixed-term contract expires without renewal; cases under Arts. 48–50 | Full (Art. 52) |
| Resignation (indefinite contract), under 3 years | 0 |
| Resignation from an indefinite contract, 3 to under 5 years | ½ |
| Resignation from an indefinite contract, 5 to under 10 years | ⅔ |
| Resignation from an indefinite contract, 10 years or more | Full (Art. 53) |
| Female employee ends the contract within 1 year of marriage | Full (Art. 52) |
| Dismissal under Art. 41(a): serious loss, fraud, secrets | 0 |
| Dismissal under Art. 41(b): misconduct cases | Full |
| Absence of 7 consecutive or 20 separate days | Treated as resignation (Arts. 42, 53) |
Worked examples (monthly-paid, wage includes regular allowances)
Example 1: employer termination not falling under Art. 41(a), after 7 years 6 months, wage KD 600
- Calculation method: Daily wage = 600 ÷ 26 = KD 23.077
- First 5 years: 5 × 15 × 23.077 = KD 1,730.77
- Next 2.5 years: 2.5 × 600 = KD 1,500.00
- Total: KD 3,230.77. This is below the cap of KD 10,800.
Example 2: the same employee resigns from an indefinite contract
- 5 to under 10 years of service, so the employee gets ⅔.
- 3,230.77 × ⅔ = KD 2,153.85
Example 3: resignation from an indefinite contract after 4 years, wage KD 500
- Calculation method: Full amount = 4 × 15 × (500 ÷ 26) = KD 1,153.85
- Half = KD 576.92
Example 4: resignation from an indefinite contract after 2 years 10 months
- KD 0 (Art. 53)
Example 5: employer ends probation after 90 days, wage KD 400
- Calculation method: 15 × (400 ÷ 26) = KD 230.77 for a full year
- Calculation method: × 90 ÷ 365 = KD 56.90 (Art. 32)
Example 6: employer termination not falling under Art. 41(a), after 30 years, wage KD 1,000
- Before the cap: KD 27,884.62
- The cap is 18 × 1,000 = KD 18,000, so KD 18,000 is due.
Deductions and Kuwaiti staff
- You may deduct debts or loans the employee owes you (Art. 51).
- You may not deduct your social security contributions for Kuwaiti staff (Law 85/2017).
Timing
- The law sets no separate deadline for end of service; the Article 56 deadline for monthly wages is no more than 7 days after their due date.
- If the court finds that the employer delayed payment of entitlements, it may award compensation of 1% of those entitlements for each month of delay (Art. 146).
- Pay final dues with the last salary.
Method note
Calculation method: Some calculators value "one month" as 30 ÷ 26 of the salary. We use the monthly wage. If there is a dispute, ask how the court or PAM will value it.