Kuwait End of Service Gratuity: The 1.5-Year Cap Explained
· 1 min read · Employment & Gratuity
Kuwait's gratuity system rewards long service generously — up to a point. A cap kicks in that surprises a lot of long-tenured employees. Here's the full picture.
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The formula
Kuwait's Private Sector Labour Law sets gratuity at 15 days' wage for each of your first 5 years of service, and a full month's wage for each year after that.
The 1.5-year cap
Total gratuity is capped at 1.5 years' (18 months') wage, regardless of how long you've worked. Employees with 15-20+ years of service often find this cap — not the formula — is what actually limits their payout.
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Frequently asked questions
Does resigning reduce gratuity in Kuwait?
Yes, on a sliding scale similar to other GCC countries — the reduction generally applies for resignation before 10 years of service.
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