Country guide · Kuwait · KWD
A Kuwait offer, checked properly
Kuwait's gratuity formula looks like its Gulf neighbours at a glance — until you notice the daily-wage divisor is different, the base can include allowances, and resigning early still costs you. Here is what the numbers need to include.
Open the calculator set up for Kuwait →
End-of-service gratuity: 15 days, a 26-day divisor, and a cap
Under Labour Law No. 6 of 2010, Articles 51–53, you earn 15 days' wage per year for years one to five, then a full month per year after that, capped at one and a half years' (18 months') wage. The detail that trips people up: Kuwait's daily wage divides monthly pay by 26 (working days), not 30 like Qatar, the UAE or Saudi Arabia — a smaller divisor means a slightly larger daily rate for the same monthly wage.
The base is also broader than most of the region: it is your last wage including regular allowances that form part of your pay, not basic salary alone. What counts depends on contract wording, so check yours rather than assuming.
Resignation tiers apply to indefinite contracts, roughly: under 3 years — nothing; 3–5 years — half the award; 5–10 years — two-thirds; 10+ years — the full award. Termination pays the full award regardless of tenure.
Worked example: KWD 1,200 monthly wage (including regular allowances), 7 years, terminated — 15 days × 5 years + 1 month × 2 years = 75 days' pay at the 26-day divisor, plus 2 months' wage ≈ KWD 5,860. The calculator runs this from your own figures.
Rules verified August 2026 · official sources — Public Authority for Manpower
What Kuwait living costs look like
Typical monthly figures for a family in Kuwait City — the same defaults the calculator loads when you pick Kuwait, editable to your own situation:
| Cost | Typical monthly (KWD) |
|---|---|
| Rent (family apartment/villa) | 1,008 |
| Utilities — electricity, water, internet | 142 |
| School fees, per child (÷12) | 420 |
| Groceries and household | 336 |
| Car, fuel, insurance | 546 |
The Kuwait specifics worth knowing
Rent is quarterly or annual, with a deposit of one to two months — check whether utilities are folded in, since they're frequently billed separately here.
The allowance question matters twice. Because gratuity can include regular allowances, a package that looks similar to a Qatari or Emirati offer on paper can produce a meaningfully different exit sum — read your contract's definition of "wage" before comparing across countries.
No income tax, and the arrival float is comparatively contained if rent is quarterly rather than annual — but confirm the payment schedule before you commit to a lease.
Questions people ask about Kuwait packages
Why is Kuwait's gratuity calculated differently?
Two reasons: the daily-wage divisor is 26, not 30, and the base can include regular allowances rather than basic salary alone. Both push the figure in a different direction than the Qatar/UAE model.
Does resigning cost me my gratuity?
Partly, on indefinite contracts — see the resignation tiers above. Termination always pays the full award.
What does a typical package include?
Basic plus housing and transport allowances, annual flights, medical cover, and for families an education allowance — usually per child and capped. Compare offers on the whole package, never on basic alone.
How do I check my employer or my rights?
The Public Authority for Manpower is the official source for labour rules and complaints, linked from the official links page.
Other countries: Qatar · UAE · Saudi Arabia · Bahrain · Oman — or read clear your debts before you resign.