Guide to End-of-Service Benefits in Kuwait
Learn about end-of-service benefits under Kuwait’s Private Sector Labour Law (Law No. 6 of 2010), with specialist advice to protect your rights.
Labor, Rent, Family & Property · By Fahad Alhaddad Law Firm · Published 2026-09-28 · Updated 2026-09-28
End-of-service benefits are a fundamental right of employees when their contractual relationship with their employer ends, subject to the provisions of the Private Sector Labour Law (Law No. 6 of 2010). Understanding these provisions protects your financial rights.
Eligibility Criteria for End-of-Service Benefits
An employee is entitled to end-of-service benefits based on their years of actual service with the organisation. The law sets out calculation formulas according to the type of contract and whether it is fixed-term or indefinite-term.
It is essential to verify all details of the employment contract, as its nature directly affects entitlement to these benefits and how they are calculated.
How to Calculate End-of-Service Benefits
The benefit is based on the employee’s last basic salary and number of years of service. Calculation methods differ between fixed-term and indefinite-term employment contracts.
We recommend reviewing your payslips and checking that you have calculated your periods of service accurately in accordance with the Private Sector Labour Law (Law No. 6 of 2010).
Circumstances in Which Benefits May Be Forfeited
The law specifies certain circumstances that may affect an employee’s entitlement to benefits, particularly resignation or dismissal for serious misconduct. The relevant legal provisions should be read carefully.
We always recommend understanding the legal grounds for termination of employment to ensure that you do not lose your financial rights because of improper procedures.
What to Do If There Is a Dispute over Your Benefits
If your employer manipulates your entitlements or refuses to pay them, you should take legal action. Submitting an application to the competent authority is the appropriate first step.
Keep all documents proving your periods of employment and salary to strengthen your position in any future claim.
How Can We Help Calculate Your Entitlements?
Our firm provides legal support to analyse employment contracts and calculate entitlements accurately. You can upload your contract and supporting documents for a comprehensive assessment.
We are here to ensure that you receive all your employment entitlements in accordance with the legal principles applicable in Kuwait.
Frequently asked questions
Is an employee entitled to end-of-service benefits if they resign?
Yes. An employee is entitled to end-of-service benefits subject to specific conditions under the Labour Law, but the proportion payable varies according to the length of service and the reason for termination.
How can I protect my right to end-of-service benefits?
Make sure you document all your employment details and review your employment contract carefully. If a dispute arises, consult a specialist immediately.
Related guides
This article is general information, not legal advice, and does not replace consultation with a lawyer licensed in Kuwait. The official Arabic legal texts prevail over any English explanation.