Kuwait Publishes End of Service Benefits for Workers When Employment Ends

• Kuwait law requires employers to pay end-of-service benefits to workers once their employment relationship ends
• The amount workers receive depends on how they are paid — daily, weekly, hourly, piecework, or monthly
• Workers who complete only part of a year are still entitled to a proportional end-of-service payment in Kuwait

Workers in Kuwait whose employment comes to an end are legally entitled to an end-of-service benefit from their employer.

The amount is calculated based on how the worker is paid and how long they worked.

How Kuwait calculates end-of-service pay

For workers paid on a daily, weekly, hourly, or piecework basis, the law provides 10 days' pay for each of the first five years of service. From the sixth year onwards, the entitlement rises to 15 days' pay for every additional year worked.

However, the total payout under this category cannot exceed one full year's pay, regardless of how long the worker has been employed.

Monthly-paid workers receive a more generous formula. The law grants 15 days' wages for each of the first five years of service, calculated on a pro-rated basis for any partial year within that period.

For every year worked beyond the fifth, the worker earns one full month's wages. The total benefit for monthly-paid workers is capped at one and a half years' wages.

Partial years are also covered

A key protection under Kuwait's rules is that workers do not need to complete a full year to qualify for a payment. Anyone who works for part of a year is still entitled to a benefit calculated in proportion to the actual time spent in employment with that employer. This applies to both payment categories.

Workers and employers in Kuwait should note that these entitlements come into effect at the end of the employment relationship, regardless of the reason the contract ends.

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