Kuwait 18-Month Gratuity Cap Explained (2026)

Kuwait gratuity cap - calculating the 18-month maximum end-of-service limit with a calculator — Photo by Kaboompics.com on Pexels

Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the Kuwait Labour Law; not legal advice.

Short answer

The Kuwait gratuity cap is 18 months of your salary — Article 51 of Labour Law No. 6 of 2010 says your total end-of-service gratuity can never exceed this, no matter how many years you served. In practice the Kuwait gratuity cap only bites after very long service: on a KD 1,000 basic salary it kicks in at around 23 years. Example: 25 years on KD 1,000 calculates to KD 22,884.62, but the cap cuts it to KD 18,000 — a loss of KD 4,884.62. The details, and who escapes the cap, are below.

What the Kuwait gratuity cap is

Article 51 of the Kuwait Labour Law sets two numbers that define the Kuwait gratuity cap:

Monthly-paid workers: maximum total gratuity = 18 months of salary (1.5 years' pay).
Daily, weekly, hourly or piece-rate workers: maximum = one year's pay, with a lower accrual rate (10 days/year for the first 5 years, 15 days after).

The Kuwait gratuity cap applies to the total — the 15-days-per-year tier and the one-month-per-year tier combined. It does not reset, and no extra years of service can push you past it.

Who actually hits the cap

For most workers the Kuwait gratuity cap is theoretical. Here's when it starts to bite on a monthly salary:

Basic salary	Service needed to hit the cap	Uncapped amount at 25 years	You receive (capped)
KD 400	~28 years	KD 9,153.85	KD 7,200
KD 600	~25 years	KD 13,730.77	KD 10,800
KD 1,000	~23 years	KD 22,884.62	KD 18,000

Rule of thumb: if you served under 20 years, the Kuwait gratuity cap almost certainly doesn't touch you. It is the 23–30 year veterans — and high earners — who need to check.

Worked example: KD 1,000 salary, 25 years

Let's see the Kuwait gratuity cap in action for a long-serving worker:

Daily wage. 1,000 ÷ 26 = KD 38.4615 per day.
First 5 years. 15 days × KD 38.4615 × 5 = KD 2,884.62.
Years 6–25. 20 years × KD 1,000 = KD 20,000.
Uncapped total: KD 22,884.62.
Cap check. 18 × KD 1,000 = KD 18,000. The award exceeds the cap, so you receive KD 18,000 — KD 4,884.62 stays unpaid.

Pro tip: the cap is calculated on basic salary only. If your contract splits basic and allowances, the 18-month ceiling uses the basic figure — which also means a lower ceiling than you might expect. Confirm the basic figure in your contract before estimating.

When the cap does NOT apply

Three common misunderstandings about the Kuwait gratuity cap:

It doesn't reduce small awards. Anything under 18 months' salary is paid in full — the cap only trims the excess.
Resignation doesn't change it. The Article 53 resignation brackets (half, two-thirds) apply to the calculated award; the cap sits on the Article 51 base. A resigning worker's award is usually smaller, so the cap rarely matters for resignations.
Leave encashment is separate. Unused annual leave pay (Article 73), unpaid wages and notice pay are settled on top of gratuity — the Kuwait gratuity cap doesn't swallow them.

What to do if you're near the cap

If you've served 20+ years in Kuwait, protect yourself before exit:

Calculate your uncapped award with our Kuwait gratuity calculator, then apply the 18-month ceiling yourself — know the exact number before your employer presents theirs.
Check your contract for any additional contractual end-of-service benefits beyond the statutory minimum — some employers offer more, and the statutory Kuwait gratuity cap doesn't limit voluntary extras.
Get the final settlement in writing, itemised: gratuity, leave encashment, unpaid wages — each on its own line.

Also read our full Kuwait gratuity calculation guide and what 10+ years of service means.

Related guides

Frequently asked questions

What is the maximum gratuity in Kuwait?

18 months of your basic salary for monthly-paid workers — Article 51 of Labour Law No. 6 of 2010. Daily, weekly, hourly or piece-rate workers are capped at one year's pay instead.

Is there a cap on end of service benefits in Kuwait?

Yes. The Kuwait gratuity cap limits the total Article 51 award to 18 months' salary for monthly-paid private-sector workers, regardless of years served.

How many years does it take to reach the 18-month gratuity cap in Kuwait?

Roughly 23 years on a KD 1,000 basic salary, about 25 years on KD 600, and 28 years on KD 400. Under 20 years of service, the cap almost never applies.

Does the gratuity cap apply if I resign in Kuwait?

The cap sits on the Article 51 base award, and the Article 53 resignation reduction applies separately. In practice a resigning worker's award is smaller, so the cap rarely matters for resignations — but it still exists in law.

What is the gratuity cap for daily wage workers in Kuwait?

One year's pay, with a lower accrual: 10 days' wages per year for the first 5 years and 15 days per year after that. The 18-month cap is only for monthly-paid workers.

Work out your own amount

Enter your dates and salary to see your end-of-service pay instantly.

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Sources

This guide is based on the Kuwait Labour Law (Law No. 6 of 2010, Private Sector Labour Law). Labour laws are amended from time to time; for the latest version, always check the official gazette of Kuwait.

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