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End-of-Service (EOS) Indemnity Calculation Sheet

End-of-service indemnity (مكافأة نهاية الخدمة) calculation under Article 51 of Labor Law No. 6/2010 — 15 days' wage per year for the first 5 years plus 1 month per year thereafter for monthly-paid employees (10/15 days for daily/hourly/piece-rate workers), capped at 1.5 years' salary; Law No. 85/2017 bars deducting the employer's social-security contributions from it.

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Country
🇰🇼 Kuwait
Category
HR & staff
Language of the text
EN
Version
1

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END-OF-SERVICE (EOS) INDEMNITY CALCULATION SHEET (حساب مكافأة نهاية الخدمة)

Employee: Type: Start date: End date: Years of service:

This sheet applies Article 51 of the Private Sector Labor Law No. 6 of 2010.

1. RATE 1.1. Last salary (basis for calculation): . 1.2. Daily rate (last salary ÷ 30): .

2. INDEMNITY FORMULA 2.1. Monthly-paid employees: 15 days' wage for each of the first 5 years of service, plus 1 month's wage for each year thereafter, capped at 1.5 years' salary. 2.2. Daily / hourly / piece-rate workers: 10 days' wage per year for the first 5 years, 15 days' wage per year thereafter. 2.3. Termination reason / resignation share: — on resignation from an indefinite contract the Employee receives a FRACTION of full indemnity: 1/2 for 3–5 years of service, 2/3 for 5–10 years, and the full amount above 10 years. 2.4. Gross indemnity amount: . 2.5. Cap check: .

3. LEAVE AND DEDUCTIONS 3.1. Unused annual leave compensation: (30 working days/year; under Law No. 85 of 2017, weekends, public holidays and sick leave do not reduce the annual leave balance). 3.2. Deductions: — under Law No. 85 of 2017, the employer's own social-security (PIFSS) contributions may NOT be deducted from the indemnity.

4. NET PAYABLE 4.1. Net indemnity and leave payout: .

Prepared by ______________ Date ______________

This is a boilerplate template, not legal advice. It is written under the Kuwait Private Sector Labor Law No. 6 of 2010 and related regulations and authorities (Public Authority for Manpower — PAM, under the Ministry of Social Affairs and Labor — MOSAL; Ministry of Commerce and Industry — MOCI; Kuwait Municipality/Baladia; Communication and Information Technology Regulatory Authority — CITRA; Ministry of Interior — MOI; Public Authority for Food and Nutrition — PAFN; Ministry of Health — MOH) as in effect in July 2026 — these regulations and digital platforms change frequently (work-permit transfer rules in particular have changed several times in 2026); verify against the current text before use. Have this template reviewed by a Kuwait-qualified lawyer and, for HR documents, checked against your own PAM-approved internal work regulations (اللائحة الداخلية) and posted penalties table (جدول الجزاءات) before use.

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