Our Methodology

Legal basis: Federal Decree-Law No. 33 of 2021, Article 51

Salary base: Basic salary only (allowances excluded).

• •21 days of basic salary per year for the first 5 years
• •30 days of basic salary per year thereafter
• •Total capped at 2 years' total wage — basic plus allowances (Art 51(6))
• •Minimum 1 year of continuous service to qualify
• •No resignation penalty since the 2021 reform

We also model the UAE Savings Scheme (the voluntary alternative scheme established by Cabinet Resolution 96/2023, with MoHRE rollout guidance through 2025) for enrolled employees, where the traditional gratuity is replaced by employer contributions to an investment fund.

Legal basis: Labour Law (Royal Decree M/51), Articles 84–88

Salary base: Basic salary plus all fixed monthly allowances (bonuses and commissions excluded).

• •Half a month's wage per year for the first 5 years (Art. 84)
• •One month's wage per year thereafter (Art. 84)
• •Resignation tier reductions (Art. 85): under 2 years = nil; 2–5 years = 1/3; 5–10 years = 2/3; 10+ years = full
• •Full award for force majeure and for female employees resigning within 6 months of marriage or 3 months of childbirth (Art. 87)
• •Payment due within two weeks / per Art. 88

Termination (other than for Article 80 misconduct) and contract expiry always pay the full award, with no resignation reduction.

Legal basis: Labour Law No. 14 of 2004, Article 54

Salary base: Basic salary only.

• •A flat 21 days' basic salary for every year of service — Art. 54 sets 'not less than three weeks' remuneration for every year', a flat statutory minimum with no higher tier after 5 years
• •No statutory cap on the total
• •Minimum 1 year of continuous service
• •No resignation penalty since the 2020 reforms

We apply the flat 21-day rate the statute actually sets. An earlier version of this calculator applied a 28-day tier after 5 years — a common myth that Article 54 does not support. Where a contract specifies a higher rate, the contract prevails; our figure is the statutory floor.

Legal basis: Private Sector Labour Law No. 6 of 2010, Article 51

Salary base: Basic salary only (indemnity).

• •15 days' wage per year for the first 5 years
• •One month's wage per year thereafter
• •Total capped at 1.5 years' wage (18 months)
• •Resignation reductions: under 3 years = nil; 3–5 years = 1/2; 5–10 years = 2/3; 10+ years = full
• •Termination, contract end, and mutual agreement pay the full entitlement (no reduction, no multiplier)

An earlier version of this calculator wrongly applied a 1.5× termination 'bonus'; Article 51 has no such rule — termination simply avoids the resignation reduction. We use basic salary and a monthly ÷ 30 daily rate (note: many Kuwait employers use a 26-day working month, which produces a higher daily wage).

Legal basis: Labour Law (Law No. 36 of 2012), Article 116 + the SIO scheme (March 2024)

Salary base: Basic salary for the legacy portion; total salary (basic + allowances) for the SIO portion.

• •Service before 1 March 2024 (Art. 116): 15 days' basic wage per year for the first 3 years, then one month per year, valued at the last basic wage
• •Service from 1 March 2024: employer contributions to the Social Insurance Organisation (SIO) — 4.2% of total salary per month while within the first 3 years of service, 8.4% after 3 years
• •The two portions are calculated separately and added together

The 4.2%/8.4% rates mirror the old Article 116 accrual, so the rate band follows your total length of service (not the date the scheme started). The SIO figure is an estimate of employer contributions — your actual SIO fund balance reflects the SIO's investment of those contributions; check it with the SIO directly.

Legal basis: Labour Law (Royal Decree No. 53 of 2023), Article 61 — replaced Royal Decree No. 35 of 2003

Salary base: Basic salary only.

• •Service before the new law (late July 2023): old formula — 15 days' basic salary per year for the first 3 years, then one month per year
• •Service from late July 2023: one full month's basic salary per year, from the first year
• •The two periods are split and totalled automatically
• •No minimum service (accrues pro-rata from day one); no resignation penalty

The 2023 Labour Law (RD 53/2023, Art. 61) replaced the old Royal Decree 35/2003 and took effect in late July 2023. For service before it, the Ministry of Labour applies the old formula; we apply the correct rate to each portion of your service.