End of service gratuity is considered a basic right for workers in Kuwait, whether citizens or residents. The Kuwaiti Labor Law has addressed the amount of compensation due, the method of calculating it, the conditions for its entitlement, and the cases of deprivation from it, which we will review in the following lines.
Definition of End of Service Gratuity
It is a sum of money paid to the worker upon the termination of his employment contract within specific controls and conditions. Its value varies according to the number of years of service and the worker’s monthly salary upon the termination of the employment contract and the number of paid vacations. The end of service gratuity may be full or partial depending on the reason for the termination of the employment contract.
End of Service Gratuity in Kuwaiti Labor Law
Labor Law No. 6 of 2010 regarding work in the private sector addressed the bases adopted in calculating end of service compensation and the cases in which the worker is entitled to this compensation and cases of deprivation from it, whether the employment contract was terminated due to resignation or due to the expiration of its term and non-renewal or due to the termination of the employment contract by the employer.
End of Service Gratuity Calculator in Kuwait
Kuwait Indemnity Calculator depends on the following elements in calculating the end of service gratuity:
- salary: It is the last salary that the worker received upon the end of his employment contract. The calculation method differs if the salary is monthly, weekly or hourly.
- Service period: It is the period that the worker spent working in years, months and days.
- Paid vacations: It means paid vacations that the worker is entitled to and did not use during the period of his employment contract.
Conditions for End of Service Gratuity in Kuwait
- The worker must be subject to the Kuwaiti Labor Law.
- The termination of the employment contract must not be among the reasons that prevent compensation.
- There must be a fixed-term or open-ended employment contract.
Case for entitlement to End of Service Gratuity in Kuwait
The worker is entitled to end of service gratuity in Kuwait if his employment contract is terminated for one of the following reasons:
- The employer’s failure to comply with the content of the employment contract or the Labor Law in Kuwait.
- The employer or his representative assaults the worker.
- Continuing to work harms the worker’s health.
- The employer commits acts that violate public morals towards the worker.
- The death of the worker or his inability to continue working or his illness with the exhaustion of his sick leave.
- Issuance of a judgment declaring the bankruptcy of the employer.
- The company in which the worker works is permanently closed.
- Termination of the employment contract of a married worker within one year from the date of marriage.
Cases for not entitlement to End of Service Gratuity in Kuwait
The worker is not entitled to end of service gratuity if his employment contract ends for one of the following reasons:
- The worker causes significant losses to the employer.
- The worker discloses the company’s business secrets, which may cause losses to the employer.
- The worker used fraudulent methods to obtain his current job
How to calculate the end of service gratuity in Kuwait
To calculate the end of service gratuity, you must visit the csc.net.kw Salary English verification service accurately and then adhere to the following calculations:
- Monthly wage worker:
- Compensation for the first five years = (daily salary × 15) × number of years
- Compensation for each year beyond the first five years = monthly salary × number of additional years.
- Compensation for months beyond one year:
- Compensation for months for the first 5 years = (number of months ÷ 12) × (daily salary × 15)
- Compensation for months beyond the first five years = (number of months ÷ 12) × monthly salary.
- Compensation for days less than one month:
- Compensation for days for the first 5 years = (number of days ÷ 365) × (daily salary × 15)
- Compensation for days beyond the first five years = (number of days ÷ 365) × monthly salary.
- Daily, weekly, hourly or piece-rate worker:
- Compensation for the first five years = (daily salary × 10) × number of years
- Compensation for each year beyond the first five years = (daily salary × 15) × number of years
- Compensation for months beyond one year:
- Compensation for months for the first 5 years = (number of months ÷ 12) × (daily salary × 10)
- Compensation for months beyond the first five years = (number of months ÷ 12) × (daily salary × 15)
- Compensation for days less than one month:
- Compensation for days for the first 5 years = (number of days ÷ 365) × (daily salary × 10)
- Compensation for days beyond the first five years = (number of days ÷ 365) × (daily salary × 15).
- Compensation for paid vacations = daily salary × number of unused paid vacations.
Additional information about end of service gratuity in Kuwait
- The worker is entitled to half of the end of service gratuity if the indefinite-term employment contract is terminated by him and his service period is not less than 3 years and does not reach 5 years.
- The worker is entitled to two-thirds of the end of service gratuity if the indefinite-term employment contract is terminated by him and his service period is not less than 5 years and does not reach 10 years.
- The worker whose contract has ended is entitled to obtain an end of service certificate from the employer.
Conclusion
The end of service gratuity in Kuwait is one of the worker’s rights that aims to provide financial security for him when his contractual relationship with the employer ends within the controls set by the Labor Law. You can visit Kuwait E-Portal to learn more details about the Labor Law and the end of service gratuity in Kuwait.
