Aqid ERPMeaning
Under article 51 of Law No. 6 of 2010, a worker paid by the month earns an end-of-service indemnity of fifteen days' remuneration for each of the first five years of service and a month's remuneration for each year after, with parts of a year in proportion. The total may not exceed a year and a half's remuneration. A worker paid by the day, week, hour or piece earns ten days a year for the first five years and fifteen after, capped at a year's pay.
Under article 53 as PAM publishes the 2010 text, a worker who resigns from an open-ended contract receives half the indemnity after three and under five years, and two-thirds after five and under ten. Kuwaiti staff are covered by the PIFSS alongside the Labour Law.
Also called: Kuwait indemnity · end of service gratuity Kuwait · article 51 indemnity
Example
A worker leaves after nine years on KWD 1,200.000 a month. A day's pay is 1,200 ÷ 26 = KWD 46.154, so five years at fifteen days come to KWD 3,461.538 and four years at a month to KWD 4,800.000: KWD 8,261.538, under the cap.