Calculating end of service benefits

By Attorney Fajer Ahmad

Kuwait labor law has been set for the benefit of the employee and is one of the best laws internationally when it comes to end of service benefits. With that said, many details may be involved in the calculation of end of service benefits, so today I would like to go over some basic information regarding end of service benefits.

Question: If I am getting a basic salary, plus a yearly ticket, and monthly allowance for my rent and phone utilities, how do I calculate end of service benefits? Is it based on my basic salary or do I add all the benefits I get within a year and then divide by 12?

Fajer: Neither. You calculate it based on monthly benefits you are getting and not yearly or basic salary. For you it will be your basic salary in addition to your monthly allowance for rent and phone utilities.

Question: If I have been working for a company for 12 years, and my basic salary is KD 500. How do I calculate my end of service benefits?

Fajer: It really depends on who resigned and how the employment agreement was terminated. Please see below:

End of Service Benefits Calculation

Article 51 & 53

Termination by Employer Employee (Resignation) Employee




Number of years worked N/A 3-5 years 5-10 years More than 10 years
Type of Agreement Indefinite – Does not have a term Indefinite – Does not have a term Indefinite – Does not have a term Indefinite – Does not have a term
1-5 years 15 days’ salary per year ½ of A ⅔ of A Same amount as A
5+ One month’s salary per year
Maximum 18 months’ salary


Question: I terminated my agreement by resigning three years after working, because of a violation from my employer. He keeps my passport and does not want to give it back. Am I still entitled to end of service benefits?

Fajer: Please note that if you terminate your agreement based on a serious violation from your employer, such as keeping your passport, you are not only entitled to end of service benefits, but are entitled to them in full.

Article 48

An employee shall be entitled to end of service benefits if they terminate their employment contracts for the following reasons:

– The employer does not follow the terms of the contract or the Kuwait labor law.

– The employee was assaulted at the workplace by the employer.

– The employment poses a threat to the employee’s health, which is approved by the ministry of health.

– The employer committed fraud concerning the work conditions upon signing the contract.

– The employee is acquitted after being falsely accused by the employer.

– The employer commits an act that violates the employee’s public morals.

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