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Gratuity Hisab

How to Calculate Gratuity in Kuwait (2026)

Kuwait gratuity calculation - worker calculating end-of-service pay on a calculator
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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 calculation follows Article 53 of the Kuwait Labour Law: take your basic salary ÷ 26 (your daily wage), multiply by 15 days for each of the first 5 years of service, then add one full month's salary for every year after the fifth. The total can never exceed 18 months of salary. Example: on a KD 500 basic salary with 7 years of service, your gratuity is KD 2,442.31 — every step is worked out below.

The Kuwait gratuity formula (Article 53)

Article 53 of the Kuwait Labour Law (Law No. 6 of 2010) sets the end-of-service gratuity for private-sector employees. The Kuwait gratuity calculation has two tiers, and knowing which tier your years fall into is the whole trick:

Notice what the Kuwait gratuity calculation does not include: housing, transport and other allowances. Only your basic salary counts — see our guide on whether Kuwait gratuity is based on basic or gross salary.

Worked example: KD 500 basic salary, 7 years of service

Let's calculate gratuity in Kuwait step by step for a worker earning KD 500 basic salary who completed 7 years:

  1. Daily wage. 500 ÷ 26 = KD 19.2308 per day.
  2. First 5 years. 15 days × KD 19.2308 × 5 years = KD 1,442.31.
  3. Years 6 and 7. 2 years × KD 500 (one month each) = KD 1,000.
  4. Total gratuity: KD 1,442.31 + KD 1,000 = KD 2,442.31.
  5. Cap check. 18 months × KD 500 = KD 9,000. Our KD 2,442.31 is well under the cap, so the full amount is payable.
Why ÷ 26? Kuwaiti labour practice treats the month as 26 working days for gratuity purposes. Using 30 (like the UAE or Qatar) would underpay you — on KD 500 basic, the ÷ 30 method gives only KD 1,250 for the first 5 years instead of KD 1,442.31. Always insist on the ÷ 26 divisor.

Kuwait gratuity calculation table (KD 400 basic salary)

Here is what the Kuwait gratuity calculation gives at different service lengths on a KD 400 basic salary:

Years of serviceFirst 5 years (15 days/yr)After 5 years (1 month/yr)Total gratuity
3 yearsKD 692.31—KD 692.31
5 yearsKD 1,153.85—KD 1,153.85
8 yearsKD 1,153.85KD 1,200KD 2,353.85
12 yearsKD 1,153.85KD 2,800KD 3,953.85
20 yearsKD 1,153.85KD 6,000KD 7,153.85

Daily wage used: 400 ÷ 26 = KD 15.3846. None of these hit the 18-month cap (KD 7,200 on this salary) — the cap only bites after very long service on high salaries.

The 18-month cap: when it actually matters

The Kuwait gratuity calculation is capped at 18 months of salary, no matter how long you served. On a KD 1,000 basic salary, the cap is KD 18,000. Reaching it needs roughly 23+ years of service — so for most workers the cap is theoretical. But if you served 25–30 years, check: anything above 18 months' salary is simply not paid. The cap applies to the total, combining both tiers.

What counts as salary in the Kuwait gratuity calculation

Only the basic salary in your contract counts. Housing allowance, transport allowance, overtime, bonuses and commissions are excluded by Article 53. If your payslip shows KD 700 total but KD 500 basic, your Kuwait gratuity calculation runs on KD 500. Many workers discover this only at exit — read our basic-vs-gross salary guide before you sign your final settlement.

Resignation changes the numbers

The formula above is the full gratuity. If you resign (rather than being terminated or completing a fixed-term contract), Article 53 applies reduction brackets: under 3 years you get nothing, 3–5 years gives half, 5–10 years gives two-thirds, and 10+ years gives the full amount. Our Kuwait gratuity after resignation guide works through each bracket with examples.

Related guides

Frequently asked questions

How is gratuity calculated in Kuwait?

Under Article 53 of the Kuwait Labour Law: (basic salary ÷ 26) × 15 days for each of the first 5 years, plus one full month's basic salary for every year after the fifth. The total is capped at 18 months of salary. Only basic salary counts — allowances are excluded.

Why is Kuwait gratuity divided by 26 and not 30?

Kuwaiti labour practice uses a 26-day divisor (working days in a month) for the daily wage instead of 30. On a KD 500 basic salary this means KD 19.23 per day instead of KD 16.67 — a meaningful difference in your favour. Always check your settlement uses ÷ 26.

Is there a maximum gratuity in Kuwait?

Yes — 18 months of your basic salary, regardless of how many years you served. On a KD 500 basic salary the cap is KD 9,000. Most workers never reach it; it typically only affects 23+ years of service.

Do I get gratuity if I worked less than one year in Kuwait?

The Article 53 formula is pro-rata friendly: even one year gives 15 days' wages (basic ÷ 26 × 15). There is no one-year cliff like in the UAE — but if you resign with under 3 years of service, the resignation brackets reduce your gratuity to zero.

Where can I calculate my Kuwait gratuity online?

Use the free Kuwait gratuity calculator on this site — enter your basic salary and service period and it applies the Article 53 formula (including the 18-month cap) instantly.

Work out your own amount

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Sources

This guide is based on Article 53 of 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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