How to Calculate Gratuity in Kuwait (2026)
Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the Kuwait Labour Law; not legal advice.
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:
- Years 1–5: 15 days' wages per year. Daily wage = basic salary ÷ 26 (Kuwait uses a 26-day divisor, not 30).
- Year 6 onwards: one full month's basic salary per year.
- Cap: the total gratuity can never be more than 18 months of your salary.
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:
- Daily wage. 500 ÷ 26 = KD 19.2308 per day.
- First 5 years. 15 days × KD 19.2308 × 5 years = KD 1,442.31.
- Years 6 and 7. 2 years × KD 500 (one month each) = KD 1,000.
- Total gratuity: KD 1,442.31 + KD 1,000 = KD 2,442.31.
- 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.
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 service | First 5 years (15 days/yr) | After 5 years (1 month/yr) | Total gratuity |
|---|---|---|---|
| 3 years | KD 692.31 | — | KD 692.31 |
| 5 years | KD 1,153.85 | — | KD 1,153.85 |
| 8 years | KD 1,153.85 | KD 1,200 | KD 2,353.85 |
| 12 years | KD 1,153.85 | KD 2,800 | KD 3,953.85 |
| 20 years | KD 1,153.85 | KD 6,000 | KD 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
- Kuwait gratuity after resignation: what you get
- Is Kuwait gratuity based on basic or gross salary?
- What is the notice period in Kuwait?
- Kuwait gratuity calculator
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
Enter your dates and salary to see your end-of-service pay instantly.
More questions
- Kuwait gratuity after resignation: what you get
- Basic or gross salary for Kuwait gratuity?
- What is the notice period in Kuwait?
- Kuwait gratuity calculator
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.
